Explorer for diamond deposits, Paramount Mining Corporation (PCP) today said it had recovered a diamond which might point to a volcanic source, propelling its shares up as much as 10%.
Shares in the junior explorer eased at close, adding 0.2 cents or 5% to 4.2 cents.
Paramount said that a clear white diamond from a sample associated with an anomalous feature that may represent its volcanic source has been recovered from its Wood River Project in Western Australia’s Kimberley region.
The company said the diamond is octahedral in shape and measures over 0.5 mm in diameter. This is the first diamond recovered in Western Australian by Paramount.
“The diamond is associated with a clearly defined anomalous feature, located in the headwater area of the small creek we sampled,” chief executive officer Maureen Muggeridge said.
“We already have a key target area to investigate in a closely confined target area,’ Muggeridge added.
The Perth-based company reported factors which point to being ‘on the right track’. It said previous explorers had recovered 2 diamonds also greater than 0.5 millimetres in diameter, on the same short creek, about 4 kilometres downstream from Paramount’s find.
Paramount is in the process of undertaking a $40 million capital raising on the Johannesburg Stock Exchange in September this year, which will comprise of its South African assets.
