Category Archives: DIAMOND MINES

Gem Diamonds shares ablaze as miner discovers 910-carat rough diamond

A RARE FIND OF A 910 CARAT ROUGH DIAMOND IN AFRICAN DIAMOND MINE

Shares in Africa-focused Gem Diamonds (LON:GEMD) skyrocketed Monday morning after the miner announced the recovery of what it qualified as the fifth biggest gem-quality diamond ever found.

The 910-carat, D colour, Type IIa rough diamond was unearthed at the firm’s flagship Letšeng mine in Lesotho. According to analysts at Liberum, it may fetch as much as $40 million, based on previous sales of large quality stones.

The company’s stock leaped more than 17% on the news by midday Monday, the biggest intraday gain since 2010, trading at 93 pence.

To date, Gem Diamonds has recovered ten 100-carat-plus stones from its Letšeng mining

operation  inLesotho, and five of the 20 largest white gem-quality rough diamonds ever
found.

 

Since acquiring Letšeng in 2006, Gem Diamonds has found now five of the 20 largest white gem quality diamonds ever recovered, which makes the mine the world’s highest dollar per carat kimberlite diamond undertaking.

Up to now the company has recovered ten 100-carat-plus stones at Letšeng. One of them, a 357-carat stone found in 2015, sold for $19.3 million.

“This eawesome top quality diamond is the largest to be mined to date and highlights the unsurpassed quality of the Letšeng mine,” em Diamonds’ chief executive officer, Clifford Elphick, said in the statement.

Previous to today’s announcement, the biggest diamond dug at that mine was the 603-carat called Lesotho Promise, found in 2006.

At an average mountainous elevation of 3,100 metres (10,000 feet) above sea level, Letšeng is also one of the world’s highest diamond mines.

The biggest diamond ever found was the 3,106-carat Cullinan, dug near Pretoria, South Africa, in 1905. It was later cut into several stones, including the First Star of Africa and the Second Star of Africa, which are part of Britain’s Crown Jewels held in the Tower of London. Lucara’s 1,109-carat Lesedi La Rona was the second-biggest in record, while the 995-carat Excelsior and 969-carat Star of Sierra Leone were the third- and fourth-biggest.

Henry Sapiecha

www.www-gems.com

www.www-globalcommodities.com

Sierra Leone ‘Peace Diamond’ in the rough sold for less-than-expected

Still, the egg-sized, 709-carat rock fetched $6.5 million

Sierra Leone has sold one of the world’s largest diamonds ever found at an auction in New York on Monday, fetching a lower-than-expected price of $6.5 million

The egg-sized, 709-carat rough “Peace Diamond” is one of the largest ever discovered in the West African country and one of the world’s 20 biggest rough precious rocks ever found.

The egg-sized diamond was found in March in the country’s eastern Kono region by a Christian pastor who gave it to the government.The yellowish diamond is also one of the largest found in recent years at mines in southern Africa, closely behind Lucara Diamond’s (TSX:LUC) 1,111-carat rock discovered in Botswana in 2015.

It was sold to luxury jeweller Laurence Graff, chairman of Graff Diamonds, a British multinational jeweller based in London, said international diamond trading network Rapaport Group, which marketed and auctioned the stone for free.

As promised by the pastor who found the diamond and later donated it to Sierra Leone’s government, half of the proceeds from the auction will be used to fund infrastructure projects to benefit the community of the small village where it was discovered.

The country’s government will receive about $3.9 million of the final selling price as taxes, Rapaport said. Another $980,454 will enter a community development fund, while about $1 million will go to local diggers in the West African nation’s Kono district.

This is not the first “Peace Diamond” is put up for sale. A $7.8 million bid was turned down by the government of Sierra Leone in May. Two months later, authorities announced they would try selling it again.

Between 1991 and 2002, the Kono district — where the Peace Diamond was found — was at the centre of the “blood diamond” trade that funded the country’s brutal civil war as rebel groups exchanged gems for weapons.

Emmanuel Momoh, a 39-year-old pastor who is also one of hundreds of so-called artisanal miners in Kono, Sierra Leone’s key mining district, found this diamond — the second-largest ever found in the West African nation. (Image courtesy of National Minerals Agency of Sierra Leone.)

Henry Sapiecha

Kimberlite deposit in Nunavut Canada is far deeper than previously estimated

Peregrine Diamonds Ltd. (TSX:PGD) announced that the CH-6 kimberlite deposit at its Chidliak diamond project, located 120 kilometres northeast of Iqaluit, Nunavut, is twice as deep as it previously estimated.

“The 2017 resource expansion drill program at the CH-6 kimberlite has confirmed that the high-grade CH-6 kimberlite extends from surface to 540 metres below surface, an additional 280 metres below the 260-metre depth of the current CH-6 Inferred Resource announced on April 7, 2017,” the company said in a press release.

The Vancouver-based miner, who had its first kimberlite discovery at Chidliak in 2008, added that caustic fusion microdiamond results released from the 2017 drill program match well with pre-2017 microdiamond results for the KIM-L High Grade and the KIM-L Normal Grade kimberlite units. The KIM-L High Grade were estimated at 4.16 carats per tonne in the Inferred Resource, while the KIM-L Normal Grade were estimated at 2.12 carats per tonne.

These results, the junior mining company says, will form the basis of a revised CH-6 resource estimate whose expectation is that of extending the categorized resource base from a depth of 260 metres below surface to 540 metres below surface.

Peregrine sees potential for doubling the number of diamonds extracted from the site. In addition to this, the company’s President and Chief Executive Officer, Tom Peregoodoff, said that the expectations are high following the recovery of a very rare green diamond. “[The finding] bodes well for the presence of other rare, coloured diamonds that could have a significant impact on the overall average prices eventually received for diamonds recovered from the Chidliak project,” Peregoodoff said.

Henry Sapiecha

Alrosa prepared to now auction the most expensive diamond ever polished in Russia

Part of its “Dynasty collection,” consisting in five diamonds polished from a 179-carat rock found in 2015

Russian miner Alrosa  (MCX:ALRS), the world’s top diamond producer by output will auction Wednesday a rare collection of diamonds produced domestically, including the most expensive rock ever polished in the country — a giant 51.4-carat gem.

More than 130 potential buyers have already registered to participate in tomorrow’s online sale of the diamond collection, named after the dynasties of the Romanov, the company said in a statement. That family ruled for more than 300 years before the Russian Revolution.

The largest of all bears the same name as the entire Dynasty collection. It’s a huge, traditional round-cut diamond, whose 2.5 cm (1 inch) diameter is equal in size to the visible part of a human eye.

The five diamonds. (Photo: Alrosa)

Discovered in 2015, the rough version of the diamond was a massive 179-carat gem, found in a mine in the northeast region of Sakha. It was then cut and polished into five smaller gems, named after noble families of the imperial era: Sheremetyev, Orlov, Vorontsov and Usupov.

“There was a good reason to choose the name for the collection, which is connected with Alrosa’s intention to revive the traditions and memory of renowned Russian jewelers famous for their craftsmanship and filigree since Russia’s first cutting and polishing factory founded by Peter I (the Great) early in the 18th century,” the company said.

The 179-carat rough diamond that was the source of the Dynasty collection. (Photo: Alrosa)

According to Alrosa, the Dynasty diamond is potentially the most expensive diamond manufactured in the history of Russian jewellery because of its quality.

Alrosa’s decision to produce these polished diamonds and sell them online fits with a broader industry quest to find new ways to the market and add value on the part of gem producers.

Alrosa and Anglo American’s De Beers unit, which for the first time auctioned polished stones this year, produce about half of the world’s rough diamonds.

RELATED TOPICS >> www.www-gems.com

Henry Sapiecha

Canadian latest diamond discoveries could fill pending supply void

Story by Paul Zimnisky of Diamond Analytics

On November 1st, De Beers said that it will be closing its nearly depleted Victor diamond mine in northern Ontario in early 2019. Victor is the first in a line of legacy diamond mines world-wide that will be closing over the next 5-years.

Most notably, Rio Tinto’s illustrious Argyle mine in Australia is expected to shut operations in 2021. At peak production, in the mid-90’s, Argyle produced over 40M carats annually. To put that into perspective, total 2017 global diamond output is estimated at less than 150M carats.

De Beers Voorspoed mine in Botswana is on pace to reach end-of-life by the end of the decade, and a slew of the company’s alluvial mines in Namibia are planned to be phased out by 2022.

With global diamond demand forecast to grow at approximately 3.5% annually over the next five years, driven by middle class consumers in Mainland China and India, the industry’s fastest growing large markets, a supply gap down the line seems inevitable if forecasts hold.

Globally there only two new diamond projects in the works with annual production potential of in excess of 1M carats, one in Angola, the other in Russia. Further, new diamond project exploration has been limited by challenges in the upstream diamond industry’s primary jurisdictions.

Greenfields diamond exploration in South Africa is at multi-decade lows due to delays in granting of prospecting licenses and perceived risks of a new Mining Charter, and this year there was a production disruption at the Williamson diamond mine in Tanzania related to government changes in mining legislation.

In Botswana, home to De Beers’ primary asset base, the country has been heavily explored and most major diamond discoveries are assumed to already have been made. In Russia, most major diamond production in is controlled by government entities.

Estimated global diamond production by nation in value in 2017. Total 2017 global diamond production estimated at $15.6 billion. Source: Paul Zimnisky
Notes: Asterisk notes G20 nation. Number inside parenthetical notes country’s ranking in Transparency International’s 2016 Corruption Perceptions Index (1-“very clean”, 176-“highly corrupt”). Dollar figure is estimated 2017 value of diamond production by nation. Percent figure is nation’s estimated contribution to global diamond production by value in 2017. All figures in USD.

This makes Canada, already the third largest diamond producing nation in the world by value (see chart above), arguably the most prospective diamond exploration jurisdiction in the world. In May of this year, Canada’s leading diamond producer, Dominion Diamond (private), pledged to spend C$50M on exploration over next 5 years, the company’s first major greenfields exploration since 2007.

After being acquired for US$1.2B in July by private-held the Washington Companies (at a 44% premium to where the stock was trading the day before initial indication of interest was made), on November 1st Dominion reiterated plans of “reinvigorating” exploration programs in Canada.

Dominion is partnered with North Arrow Minerals (TSX-V: NAR) on the prospective “Lac de Gras” property, which is located within a diamondiferous kimberlite field in the Northwest Territories that is the source to some of the richest diamond deposits in the world, including Dominion’s two world-class mines, Ekati and Diavik.

Dominion’s partner is known for making 2 of the only 5 kimberlite discoveries made in Canada over the last 5 years, and both of North Arrow’s discoveries were diamond bearing. Just last month North Arrow announced a discovery at the company’s 100%-owned Mel project in in the Nunavut territory of Canada. The company has plans to set up an exploration camp and drill the property next year.

Mel is approximately 200km northeast of the North Arrow’s 100%-owned Naujaat property which already has an inferred resource of over 26M carats and contains fancy yellow and orangey-yellow diamonds. In September, the company completed a C$2M drilling and mini-bulk sampling program at the property with results expected in the coming months. North Arrow also has pending results from a till sampling program at its Pikoo project, a 100%-owned diamond bearing kimberlite project in Saskatchewan that was discovered by North Arrow in 2013.

This coming March, Dominion will lead a drill program at the aforementioned Lac de Gras joint-venture (69% Dominion/31% North Arrow) in hopes of discovering new diamondiferous kimberlites. At around the same time North Arrow will also be drilling at its 100% owned Loki project, also in the Northwest Territories, and approximately only 30-40km away from both Ekati and Diavik.

With active programs across multiple worthy projects in Canada’s premier diamond territories, North Arrow appears well positioned to add to previous success and maintain its status as Canada’s leading publicly-traded stand-alone diamond explorer.

Disclosure: Paul Zimnisky has been compensated by North Arrow Minerals to produce the above content. The content includes views that are based on observations and opinions. The author has made every effort to ensure the accuracy of information provided, however, accuracy cannot be guaranteed. The above content is strictly for informational purposes and should not be considered investment advice. Consult your investment professional before making any investment decisions. None of the parties involved accept culpability for losses and/or damages arising from the use of content above.

www.www-gems.com

www.www-globalcommodities.com

www.gem-creations.com

Henry Sapiecha

Lucara sells world’s second-largest diamond for $53 million

The tennis ball-sized Lesedi La Rona rough diamond that Lucara Diamond (TSX:LUC) unearthed two years ago at its Karowe mine in Botswana was sold this week for $53 million.

The buyer, London-based Graff Diamonds, paid nearly $47,777 per carat.

“The stone will tell us its story. It will dictate how it wants to be cut, and we will take the utmost care to respect its exceptional properties,” said the gem’s new custodian, Laurence Graff, in a press release.

On the other hand, Lucara CEO William Lamb stated that Graff paid a fair price for the 1,109-carat diamond, whose discovery marked a defining moment for the Vancouver-based company.

Such finding, he said, “solidified the amazing potential and rareness of the diamonds recovered at the Karowe mine. We took our time to find a buyer who would take the diamond through its next stage of evolution.”

Henry Sapiecha

World’s ‘most beautiful diamond’ to go under the hammer at Christies Auction House

Diamond necklace featuring 163-carat flawless emerald stone, largest of its kind ever to be put up for an auction, has been unveiled in Hong Kong on Thursday September 28 (PRNewsfoto/de GRISOGONO)

An impressive flawless 163-carat diamond that has been hailed the “world’s most beautiful” will go under Christie’s hammer in Geneva in November, the auction house said Thursday.

Discovered in February last year in eastern Angola, the 404.20-carat rough diamond — named the “4 de Fevereiro” — was also the largest found so far in the southern African country, Christie’s said.

www.gem-creations.com

Diamond necklace featuring 163-carat flawless emerald stone, largest of its kind ever to be put up for an auction, has been unveiled in Hong Kong on Thursday September 28 (PRNewsfoto/de GRISOGONO)

A team of ten diamond-cutting specialist were involved polishing the rough diamond during the period of 11 months. The stone was then designed into a one-of-a-kind piece by Swiss jewellery house de Grisogono.

The D-color, emerald-cut diamond is classified as a rare Type IIa one, which in technical terms means an almost complete absence of nitrogen in the stone, de Grisogono said in a separate statement.

The original, 404.20-carat rough diamond that was mined in eastern Angola — the 27th largest rough white diamond ever discovered. (Image courtesy of Christie’s.)

It took over 1,700 hours to create this unique jewel and involved a team of 14 craftsmen and their know-how as well as love for perfection for each detail in the necklace.

he D-color, emerald-cut diamond can be detached from its white gold, diamond and emerald necklace. (Image courtesy of Christie’s.)

The finished piece, named The Art of de Grisogono, allows customers to detach it from its white gold, diamond and emerald necklace, if they wish to do so. It will be shown in London, Dubai and New York before going to auction in Geneva on November 14.

www.www-gems.com

Henry Sapiecha

Alrosa Russian Diamond mine finds gigantic pink diamond, likely its most expensive one

Russia’s Alrosa (MCX:ALRS), the world’s top diamond producer by output in carats, has unearthed 27.85-carat pink precious rock the company believes could be the most expensive it has ever found.

Alrosa is trying to decide on whether to sell this pink rock as a rough diamond, or cut and polish it.The miner, majority-owned by the Russian government, said the gem-quality stone was found at its alluvial mines in Russia’s Far East, adding that the largest pink diamond it had previously discovered was less than 4 carats in weight.

The impressive pink rock, measuring 22.47 mm x 15.69 mm x 10.9 mm, has very few flaws and could become the company’s most expensive polished diamond if it decides to cut it, Alrosa said in the statement.

Coloured diamonds, especially pink ones, have been lately setting records in auctions. In April, Sotheby’s sold a 59.6-carat one — the ‘‘Pink Star’’ — for $71.2 million. Until then, the most expensive diamond ever sold at auction was the “Oppenheimer Blue,” which fetched 56.8 million Swiss francs (more than $57 million at the time) in May 2016.

The previous world auction record for a pink diamond was $46.2 million for the 24.78 carat “Graff Pink” in 2010.

Alrosa noted that it is currently trying to decide on whether to sell this pink rock as a rough diamond, or cut and polish it.

www.www-gems.com

Henry Sapiecha

Worlds biggest diamond mine Alrosa has sold $2.5 billion in diamonds so far this year 2017

World’s largest diamond producer by output said market has refound its balance.

Russia’s Alrosa (MCX:ALRS), the world’s top diamond producer by output, said Monday it sold $2.5 billion worth of rough and polished precious rocks from January to June this year.2017

From that total, rough diamonds sales totalled $2.442 billion, and polished ones fetched $54.9 million, the company said.

Last month alone, the miner brought in $365 million in diamond sales — $354 million in rough rocks and $10.6 m. in polished ones.

Alrosa Vice President Yury Okoemov said the company considers the seasonal slowdown of June officially at an end, adding the rough diamond market is back to being balanced.

The company, which is planning to increase production by 6% to 39.2 million carats this year, appointed in March Sergei Ivanov, the son of a close advisor to Russian president Vladimir Putin, as its new president.

Henry Sapiecha

Yet Another huge diamond unearthed in Lesotho mine

Gem Diamonds discovered this high quality 126-carat, D colour Type IIa rock at Letšeng

Africa-focused Gem Diamonds (LON:GEMD) unveiled Thursday a 126-carat rock unearthed at its flagship Letšeng mine in Lesotho, the latest in a string of major discoveries at the operation this year.

The finding of the high quality D colour Type IIa diamond comes barely a month after the company discovered two massive diamonds at the same mine —  a 151.52-carat Type I yellow rock and a high quality 104.73-carat, D-colour Type IIa stone.

It also follows the recovery of a 114-carat diamond in April and an 80-carat, D-colour Type-II diamond found in May — one of the highest-quality diamonds to come out of the Letšeng mine.

Type IIa diamonds contain very little or no nitrogen atoms, which places them among the most expensive stones.

Since acquiring Letšeng in 2006, Gem Diamonds has found four of the 20 largest white gem quality diamonds ever recovered, which makes of the mine the world’s highest dollar per carat kimberlite diamond operation.

At an average elevation of 3,100 metres (10,000 feet) above sea level, Letšeng is also one of the world’s highest diamond mines.

Henry Sapiecha