Category Archives: EXPLORATIONS & DISCOVERIES

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 gets almost $18M for fragment of its massive ‘Lesedi La Rona’ diamond

Canada’s Lucara Diamond (TSX:LUC), the company that hit the jackpot in 2015 after finding the world’s second-largest diamond, just got $17.5 million for a piece that broke from that rock, the now historic 1,109-carat “Lesedi La Rona.”

To date, Lucara has sold 145 diamonds for more than $1 million each.The 373.7-carat diamond, sold during the Vancouver-based miner’s $54.8 million recent tender to luxury jeweller Graff Diamonds, was one of 15 large and high value rocks offered by the company.

Just like the 1,109-carat diamond it found in 2015, all the stones sold this week were mined at Lucara’s Karowe mine in Botswana, which has been yielding massive rocks as of late.

Last year, the miner sold one of those mammoths — the 813-carat “The Constellation” — for $63 million, setting a new record for a rough gem.

It wasn’t that lucky when it came to three-billion-year-old “Lesedi La Rona,” meaning “our light” in the Tswana language spoken in Botswana, as the rock failed to sell at a Sotheby’s auction in June last year.

This is the 373.72-carat rock, once part of the second largest gem quality diamond ever discovered. (Image courtesy of Graff Diamonds.)

The gem, second in size only to the Cullinan diamond in the British Crown jewels, was expected to go for at least $70 million. The highest bid, however, was around $61 million, leaving it in Lucara’s hands.

To date, the company has sold 145 diamonds for more than $1 million each, bringing in revenues of more than $528 million, its President and CEO William Lamb said in the statement.

Botswana, the focus of Lucara, is the world’s largest producer of diamonds and the trade has transformed it into a middle-income nation.

Henry Sapiecha

World’s largest flawless heart-shaped diamond & this is it here

largest D Flawless heart shape diamond in the world image www.worldwidediamonds.info

Yes, they are a girl’s best friend. But, not every girl can get them and this particular gemstone is definitely a hard-to-get brilliant beautiful bountiful bling.

Graff Diamonds has just revealed in London its Graff Venus, the largest D Flawless heart shape diamond in the world, which weighs 118.78 carats and is the size of a walnut.

largest D Flawless heart shape diamond in the world image www.worldwidediamonds.info (2)

(Photo: Graff Diamonds).

This diamond has been described as a flawless type IIA with superb polish, excellent symmetry and nil fluorescence. These features are only accorded the top diamonds in the world.

The Venus heart shaped white diamond was cut from a 357-carat rough discovered at the Letšeng Mine in Lesotho in 2015.

It took 1.5 years for the stone to take shape, starting from the initial discovery, going through the analysis process and developing new technology to cut and polish the main diamond and the 22 other satellite stones yielded from the same piece of rough.

largest D Flawless heart shape diamond in the world study sketch image www.worldwidediamonds.info (2)

Will you be the lucky lady to receive this record-breaking superb white flawless heart-shaped gem? For now, Graff plans to showcase it around a number of countries before setting it as a jewel.

Meet_Russian_300_250

Henry Sapiecha

This is the 68-carat diamond Lucapa just found at its Lulo mine in Angola Africa

this-is-the-68-carat-diamond-lucapa-just-found-at-its-lulo-mine-in-angola image www.worldwidediamonds.info

Australia-based Lucapa Diamond (ASX:LOM) has recovered another major rock from trial mining at E46 alluvial terraces — a new area at its Lulo mine, in Angola.

The 68.1-carat gem-quality diamond is one of eight “significant” rocks found at the site, located about 10 km upstream from the alluvial Mining Block 8 and 6, from which Lucapa has been mining diamonds since the firm began commercial operations in January last year.

lucapa-diamond-at-lulo image www.worldwidediamonds.info

(Image courtesy of Lucapa Diamond)

According to the miner, the finding highlights the potential for widespread recovery of large gems from its Lulo mine, considering the largest individual diamond recovered from the initial exploration bulk sampling phase conducted in the area weighed just 6.9 carat.

Lulo, about 700 kilometers (435 miles) east of Angola’s capital Luanda, is a joint venture between the company and the Angolan government. Lulo is located 150km from Alrosa’s Catoca mine, the world’s fourth largest diamond mine.

The mine hosts type-2a diamonds which account for less than 1% of global supply and, according to Lucapa, the world’s most famous large, white, flawless diamonds belong to this category.

lucapa-exploration-at-lulo-map image www.worldwidediamonds.info

(Image courtesy of Lucapa Diamond)

Angola is the world’s No.4 diamond producer by value and No.6 by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully emerging from a long period of difficulty as a result of a civil war that ended in 2002.

The government has recently reduced taxes and cut state ownership requirements as it seeks to rekindle the industry after the global financial crisis forced mines to close.

commercial business loans info flyer www.money-au (6)

Henry Sapiecha

Rio uncovers large diamond as prices set for decline

diavik-foxfire.rio tinto rough diamond image www.worldwidediamonds.info

Rio Tinto has unveiled a 187.7 carat rough diamond, as miners predict a decline in rough diamond prices ahead.

The diamond, one of the largest ever discovered in Canada, has been called the Diavik Foxfire, and was uncovered at the Diavik mine just 220 kilometres south of the Arctic Circle.

The unveiling of the rough diamond comes as prices for the stones decline.

Rio Tinto Diamonds managing director, Jean-Marc Lieberherr, explained the reduction in demand from China coupled with a lack of available credit in the industry has wreaked havoc on the sector.

“There is a need for the rough prices to adjust to the economic value of the polished price and that trend is in motion at the moment,” Lieberherr told Bloomberg.

Prices for rough diamonds have fallen by nearly a fifth this year, and expected to continue falling for a sixth quarter.

However there is an expectation that this current situation will reverse mid-next year, as traders and cutters begin releasing supply.

“The polished pipeline is a little bit overloaded and it will probably take until about the middle of next year to come back to normal levels,” Lieberherr stated.

“The last 12 to 18 months have been tough for the industry.”

The larger producers, De Beers and Rio Tinto, have all lowered production in an effort to support prices, while Australian diamond magnates are facing financial difficulties in the low market.

Late last month the second largest single diamond ever – a 1111 carat stone – was uncovered.

ooo

Henry Sapiecha

This plant may be the best diamond-finding tool you’ll ever have

Pandanus candelabrum diamond finding plant image www.worldwidediamonds.info

While money doesn’t grow on trees, diamonds might do. Literally. That seems to be the conclusion of a study conducted in Liberia by a scientist at Florida International University (FIU) in Miami, to be published in the June-July issue of the journal Economic Geology.

Stephen Haggerty, who specializes in diamond research, has found a new prickly, palm-like plant that seems to grow only on top of kimberlite pipes — columns of volcanic rock hundreds of meters across that extend deep into Earth, which are the source of most of today’s commercial diamonds.

The plant, identified as Pandanus candelabrum, could become a simple and efficient tool for diamond hunters in West Africa to uncovering potentially rich precious gems and semi-precious gemstones deposits

The plant, identified as Pandanus candelabrum, could become a simple and efficient tool for diamond hunters in West Africa to uncovering potentially rich precious gems and semi-precious gemstones deposits, the paper claims.

Haggerty, who is also chief exploration officer of Youssef Diamond Mining Company (YDMC), with concessions in Liberia, believes the plant has adapted to kimberlite soils, which are rich in magnesium, potassium, and phosphorus.

The scientist, who has worked in the African nation off and on since the late 1970s, has in recent years focused his prospecting efforts in the northwest part of Liberia.

Stephen Haggerty. (Image courtesy of Florida International University) image www.worldwidediamonds.info

Two years ago he discovered a new kimberlite pipe 500 meters long and 50 meters wide.

Speaking to Science Magazine, Haggerty said the soil above that pipe has already yielded four diamonds: two in the 20-carat range, and two in the 1-carat range.

According to his bio, posted at FIU’s website, he is currently conducting wide-ranging research, which includes from field activities in Brazil, India, South Africa, and West Africa (finger printing “Blood Diamonds”), “to the cosmos, pre-solar diamonds (greater than 4.5 billion years old), and the enigmatic origin of black and porous carbonado-diamond.”

ooo

Henry Sapiecha