New method could simplify detection of diamond deposits

Geologists from ETH Zurich and the University of Melbourne have established a link between diamond occurrence and the mineral olivine.

In a paper published in the journal Nature Communications, the scientists explain that their method will simplify the detection of diamond deposits. The process relies on the chemical composition of kimberlites, which occur only on very old continental blocks that have remained geologically unchanged for billions of years, predominantly in Canada, South America, central and southern Africa, Australia and Siberia.

According to the study’s lead author, Andrea Giuliani, olivine is a mineral that makes up around half of kimberlite rock and consists of varying proportions of magnesium and iron. The more iron olivine contains, the less magnesium it has and vice versa.

“In rock samples where the olivine was very rich in iron, there were no diamonds or only very few,” Giuliani, who has been studying the formation and occurrence of the gemstones since 2015, said in a media statement. “We started to collect more samples and data, and we always got the same result.”

His investigations ultimately confirmed that olivine’s iron-to-magnesium ratio is directly related to the diamond content of the kimberlite. Giuliani and his team took these findings back to De Beers, who had provided them with the kimberlite samples. The company was interested and provided the scientific study with financial support and asked the researchers not to publish the results for the time being.

A slow, repetitive process
In 2019, Giuliani moved from Melbourne to ETH Zurich and, supported by the Swiss National Science Foundation, began to look for explanations for the connection between olivine’s magnesium and iron content and the presence of diamonds.

With his new colleagues, he examined how the process of metasomatism, which takes place in the earth’s interior, affects diamonds. In metasomatism, hot liquids and melts attack the rock. The minerals present in the rock react with the substances dissolved in the fluids to form other minerals.

The geologists analyzed kimberlite samples that contained olivines with a high iron content—and hence no diamonds. They discovered that olivine becomes richer in iron in the places where melt penetrates the lithospheric mantle and changes the composition of mantle rocks significantly. And it is precisely in this layer, at a depth of around 150 kilometres, that diamonds are present.

The infiltration of the melt that makes olivine richer in iron destroys diamonds. If, on the other hand, no or only a small amount of melt from underlying layers penetrates the lithospheric mantle and thus no metasomatism takes place, the olivine contains more magnesium—and the diamonds are preserved.

“Our study shows that diamonds remain intact only when kimberlites entrain mantle fragments on their way up that haven’t extensively interacted with previous melt,” Giuliani said.

A key point is that kimberlites don’t normally reach the earth’s surface in one go. Rather, they begin to rise as a liquid mass, pick up fragments of the mantle on the way, cool down and then get stuck. In the next wave, more melt swells up from the depths, entrains components of the cooled mantle, rises higher, cools, and gets stuck. This process can happen multiple times.

“It’s a real stop-and-go process of melting, ascent and solidification. And that has a destructive effect on diamonds,” Giuliani noted. If, on the other hand, conditions prevail that allow kimberlites to rise directly to the surface, then this is ideal for the preservation of the gemstones.

De Beers is already using olivine analysis
Olivine analysis is as reliable as previous prospecting methods, which are mainly based on the minerals clinopyroxene and garnet. However, the new method is easier and faster: it takes only a few analyses to get an idea of whether a given kimberlite field has diamonds or not.

“The great thing about this new method is not only that it’s simpler, but also that it finally allows us to understand why the previous methods worked,” Giuliani said. “De Beers is already using this new method.”

Source: DCLA

Strong Demand Sends Ekati Rough Sales Surging

Revenue from the Ekati deposit’s rough production soared during the fourth quarter as demand for its goods strengthened, according to owner Burgundy Diamond Mines.

Sales from the Canadian mine rose 37% year on year to $166 million for the three months that ended December 31, Burgundy reported last week. Sales volume jumped 41% to 1.8 million carats, from 1.3 million carats a year before, outweighing a 2% drop in the average price to $93 per carat.

Output increased 19% to 1.2 million carats for the October-to-December period. During the quarter, Burgundy held four auctions, including one for special stones. The miner sold all of its available inventory during those auctions, it noted.

“Each of our four auctions during the December quarter were oversubscribed due to significant customer demand,” said Burgundy CEO Kim Truter. “This has put us in a strong position with a healthy cash balance to fund the upcoming winter-road resupply and to commence the important work activities to extend the mine life at Ekati.”

Burgundy is currently retrieving ore from two sites at Ekati: an open-pit operation at Sable and an underground one at Misery. It is also working on extending Sable underground and is optimizing the Point Lake area.

Burgundy purchased Ekati from Arctic Canadian Diamond Company for $136 million in March.

Source: DCLA

Stornoway for Sale Again Following Significant Losses

Stornoway Diamonds is seeking a buyer after the weak market forced the miner to enter insolvency for the second time in just over four years.

Deloitte Corporate Finance is conducting the sale and investment solicitation process (SISP) for the Stornoway’s entire business, property and assets, the professional services firm said Tuesday. The miner, which operates the Renard deposit in Canada, has insufficient liquidity to operate and is in “a precarious financial situation,” Deloitte explained in a filing at the Superior Court of Quebec.

Stornoway reported a net loss of CAD 13.1 million ($9.6 million) for the nine months that ended September 30, according to the court documents. That compares to a profit of CAD 42.2 million ($30.7 million) for the full year of 2022.

“[India’s] unilateral ongoing import freeze and ongoing downward pressure on price[s] since March 2023…have resulted in a dramatic loss of revenue for Stornoway, and [have] seriously impaired Stornoway’s ability to sell its inventory at acceptable and profitable market prices,” the filing stated.

Prices for the company’s rough have been progressively decreasing throughout the year, Stornoway noted. From a total of six sales held since January, the miner has seen prices fall from $118 per carat to $82 per carat.

“Management estimates that Stornoway’s working capital is not sufficient to allow it to meet its financial obligations, commitments and necessary budgeted expenditures for the foreseeable future,” the filing said.

Last month, Stornoway halted operations at Renard, laid off 425 of its 500 employees, and filed for creditor protection as it sought to weather the slowdown.

This is not the first time Stornoway has faced liquidity issues. In 2019, the miner was forced to sell the business to its major lenders after accumulating debt it attributed to “continued downward pressure” on the rough market.

Stornoway currently lists assets of about CAD 287.3 million ($209.6 million) from inventory, property and plant equipment, cash and other sources.

Source: DCLA

Stornoway Halts Operations at Renard Diamond Mine

Stornoway Diamonds has suspended operations at its Renard mine in Canada amid the prolonged slowdown in demand for rough.

“The growing uncertainty of the diamond price in the short and medium term, coupled with the significant and sudden drop in the price of the resource on the world market, has had a major impact on the company’s long-term financial situation,” Stornoway said Friday. “This was in part due to the halt in the import of rough diamonds to India, and [in part to] the global geopolitical climate.”

The company will put Renard on care and maintenance to “preserve the assets and facilitate a rapid return to normal operations,” it explained. It will keep 75 of its 500 workers on staff to perform necessary tasks.

Stornoway will also seek creditor protection under the Canadian Companies’ Creditors Arrangement Act (CCAA), which allows financially troubled corporations owing more than $5 million to restructure their businesses and avoid bankruptcy. As part of this effort, the miner is “implementing a process for soliciting investment and sale proposals,” it added.

The Indian diamond-manufacturing sector announced in September that it was implementing a two-month moratorium on rough imports, from October 15 to December 15, to help reduce some of the oversupply that has built up in the midstream due to weak industry demand.

This is not the first time Stornoway has sought creditor protection under CCAA. In 2019, one of its creditors, Osisko Gold Royalties, acquired and revived the company during a restructuring process. Under the new ownership, the miner restarted operations in 2020 following a six-month halt due to Covid-19.

Source: DCLA

What Causes Diamonds To Erupt? Scientists Crack the Code

New findings hold the potential to spark future diamond discoveries.

An international team of scientists, led by the University of Southampton, has found that the breakup of tectonic plates is the main driving force behind the generation and eruption of diamond-rich magmas from deep inside the Earth.

This insight could significantly influence the trajectory of the diamond exploration industry, guiding efforts to locations where diamonds are most probable.

Diamonds, which form under great pressures at depth, are hundreds of millions, or even billions, of years old. They are typically found in a type of volcanic rock known as kimberlite. Kimberlites are found in the oldest, thickest, strongest parts of continents – most notably in South Africa, home to the diamond rush of the late 19th century. But how and why they got to Earth’s surface has, until now, remained a mystery.

The new research examined the effects of global tectonic forces on these volcanic eruptions spanning the last billion years. The findings have been published in the journal Nature.

Southampton researchers collaborated with colleagues from the University of Birmingham, the University of Potsdam, the GFZ German Research Centre for Geosciences, Portland State University, Macquarie University, the University of Leeds, the University of Florence, and Queen’s University, Ontario.

Tom Gernon, Professor of Earth Science and Principal Research Fellow at the University of Southampton, and lead author of the study, said: “The pattern of diamond eruptions is cyclical, mimicking the rhythm of the supercontinents, which assemble and break up in a repeated pattern over time. But previously we didn’t know what process causes diamonds to suddenly erupt, having spent millions – or billions – of years stashed away 150 kilometers beneath the Earth’s surface.”

To address this question, the team used statistical analysis, including machine learning, to forensically examine the link between continental breakup and kimberlite volcanism. The results showed the eruptions of most kimberlite volcanoes occurred 20 to 30 million years after the tectonic breakup of Earth’s continents.

Dr. Thea Hincks, Senior Research Fellow at the University of Southampton, said: “Using geospatial analysis, we found that kimberlite eruptions tend to gradually migrate from the continental edges to the interiors over time at rates that are consistent across the continents.”

Geological processes

This discovery prompted the scientists to explore what geological process could drive this pattern. They found that the Earth’s mantle – the convecting layer between the crust and core – is disrupted by rifting (or stretching) of the crust, even thousands of kilometers away.

Dr Stephen Jones, Associate Professor in Earth Systems at the University of Birmingham, and study co-author said: “We found that a domino effect can explain how continental breakup leads to the formation of kimberlite magma. During rifting, a small patch of the continental root is disrupted and sinks into the mantle below, triggering a chain of similar flow patterns beneath the nearby continent.”

Dr. Sascha Brune, Head of the Geodynamic Modelling Section at GFZ Potsdam, and a co-author on the study, ran simulations to investigate how this process unfolds. He said: “While sweeping along the continental root, these disruptive flows remove a substantial amount of rock, tens of kilometers thick, from the base of the continental plate.”

The typical migration rates estimated in models matched what the scientists observed from kimberlite records.

“Remarkably, this process brings together the necessary ingredients in the right amounts to trigger just enough melting to generate kimberlites,” added Dr Gernon.

The team’s research could be used to identify the possible locations and timings of past volcanic eruptions tied to this process, offering valuable insights that could enable the discovery of diamond deposits in the future.

Professor Gernon, who was recently awarded a major philanthropic grant from the WoodNext Foundation to study the factors contributing to global cooling over time, said the study also sheds light on how processes deep within the Earth control those at the surface: “Breakup not only reorganizes the mantle, but may also profoundly impact Earth’s surface environment and climate, so diamonds might be just a part of the story.”

Reference: “Rift-induced disruption of cratonic keels drives kimberlite volcanism” by Thomas M. Gernon, Stephen M. Jones, Sascha Brune, Thea K. Hincks, Martin R. Palmer, John C. Schumacher, Rebecca M. Primiceri, Matthew Field, William L. Griffin, Suzanne Y. O’Reilly, Derek Keir, Christopher J. Spencer, Andrew S. Merdith and Anne Glerum, 26 July 2023, Nature.

Source: DCLA

Petra’s Sales Slide Amid Large-Stone Scarcity

Petra Diamonds’ sales dropped 44% for the full fiscal year as the miner recovered a lower proportion of high-value stones and pushed off its final tender due to low demand.

Revenue fell to $328.4 million for the 12 months ending June 30, the company reported Tuesday. Sales volume decreased 34% to 2.3 million carats.

The company, which operates the Cullinan, Finsch and Koffiefontein mines in South Africa, as well as the Williamson mine in Tanzania, attributed the decline to a drop in the number of large and exceptional diamonds it sold during the year. The segment contributed only $12.6 million in revenue for the year, compared to $89.1 million in fiscal 2022.

Petra also postponed its sixth and final tender of the financial year as a result of lower rough prices and deferred the sale of 75,900 carats of predominantly higher-value stones from its fifth tender, it explained. A drop in production also hit sales, as the miner had lower availability of rough to offer.

In the fourth fiscal quarter, from April to June, Petra’s rough prices grew 2% on a like-for-like basis versus the same period a year ago, it said. Meanwhile, the miner’s inventories increased to 715,200 carats at the end of the quarter as a result of the deferrals, up from 381,700 on June 30, 2022.

“Our strong balance sheet and flexible sales process enabled us to postpone the majority of our…rough-diamond sales [for the sixth tender] into fiscal year 2024 on the back of what we believe to be a temporary slowdown in demand for rough diamonds,” said Petra CEO Richard Duffy. “We continue to expect a supportive diamond market in the medium to longer terms as a result of the structural supply deficit, which will benefit our strong growth profile.”

Production fell 20% to 2.7 million carats for the fiscal year due to the recovery of lower-grade ore at Cullinan and Finsch. That total was just under the miner’s previous guidance of between 2.75 million and 2.85 million carats for the year.

Petra now expects output for the new fiscal year ending June 2024 to be between 2.9 million and 3.2 million carats, down from the 3 million to 3.3 million carats it previously forecast. It has also lowered its guidance for fiscal 2025 to the 3.4 million and 3.7 million carat range, rather than the 3.6 million to 3.9 million carats it originally estimated. The decrease is the result of a slower-than-expected ramp-up at both Cullinan and Finsch following a delay in work to extend the mines, Petra added.

Source: DCLA

Majhgawan-Panna, India’s Only Mine, to Resume Operations

India’s only diamond mine

India’s only diamond mine will put up to 84,000 carats a year

Majhgawan-Panna, India’s only diamond mine which was shot down at the end of 2020, will resume production in July 2023 “with a forecast output of up to 84,000 carats a year,” IDEX Online reports.

Majhgawan-Panna, located near the town of Panna in Madhya Pradesh, was closed after environmental clearances “lapsed following concerns from the nearby Panna Tiger Reserve.” Despite this, the National Mineral Development Corporation (NMDC), India’s biggest iron ore merchant miner, plans to resume work there.

According to the report, repeated concerns by the National Wildlife Board has caused mining at the mine to halt “stopped several times over the last 50 years.” In FY2021, the mine produced 13,681 carats.

Source: israelidiamond

WHAT ARE CONFLICT DIAMONDS

WHAT ARE CONFLICT DIAMONDS

Conflict diamonds, also known as blood diamonds, are diamonds that have been mined in war zones and sold to finance armed conflict against governments. These diamonds are typically mined under inhumane conditions by workers who are often forced to work in dangerous and exploitative conditions.
The profits from the sale of these diamonds are then used to fund armed conflicts, which often involve violence, human rights abuses, and forced labor. This cycle of violence and exploitation is known as the “diamond curse.”
To combat the trade in conflict diamonds, the international community has established the Kimberley Process Certification Scheme, which requires that all rough diamonds be certified as conflict-free before they can be sold on the international market. The Kimberley Process has helped to significantly reduce the trade in conflict diamonds, but concerns remain about the effectiveness of the scheme and the ongoing trade in illicit diamonds.

What percentage of diamond production are conflict diamonds
The percentage of diamond production that can be considered conflict or blood diamonds has decreased significantly since the introduction of the Kimberley Process Certification Scheme in 2003. According to the Kimberley Process, the percentage of conflict diamonds in the global diamond trade has fallen from approximately 15% in the 1990s to less than 1% today.
However, it is important to note that some critics have raised concerns about the effectiveness of the Kimberley Process in preventing the trade in conflict diamonds. They argue that the definition of conflict diamonds used by the Kimberley Process is too narrow, and that some diamonds mined in areas of conflict may still be entering the market through illegal channels.
Furthermore, there have been reports of human rights abuses and unethical practices in diamond mining in countries that are not considered conflict zones. So while the percentage of conflict diamonds in the global diamond trade is believed to be low, it is important to remain vigilant and continue efforts to ensure that all diamonds are mined and traded ethically and responsibly.

How do i ensure the diamond i buy is conflict free
To ensure that the diamond you buy is conflict-free, you should look for a diamond that has been certified as such by a reputable organization. The most widely recognized certification scheme for conflict-free diamonds is the Kimberley Process Certification Scheme (KPCS), which was established in 2003 to prevent the trade in conflict diamonds.
Here are some steps you can take to ensure that the diamond you buy is conflict-free:

1. Buy from a reputable jeweller: Look for a jeweller that is committed to selling conflict-free diamonds and has a policy in place to verify the origin of their diamonds. Many jewelers are members of organizations that promote ethical and responsible diamond sourcing, such as the Responsible Jewellery Council or the Jewelers of America.
2. Ask for a certificate of authenticity: Ask your jeweller for a certificate of authenticity that verifies the origin of the diamond you are interested in buying. The certificate should state that the diamond is conflict-free and has been mined and traded in compliance with the Kimberley Process.
3. Look for laser inscriptions: Some diamonds may have a laser inscription on the girdle that indicates the origin of the diamond and its certification number. This can be a helpful way to verify the diamond’s origin and ensure that it is conflict-free.
4. Consider buying a lab-grown diamond: Lab-grown diamonds are an ethical and sustainable alternative to mined diamonds. They are produced in a laboratory using advanced technology and do not have the same environmental or social impacts as mined diamonds.
   

By taking these steps, you can help ensure that the diamond you buy is conflict-free and has been mined and traded in a responsible and ethical manner.

Source: Roy Cohen DCLA

Lucara Expects to Sell More Diamonds for More Money in 2023

 

Canadian miner Lucara Diamond has announced that it expects to sell between $200 million to $230 million worth of diamonds from its Karowe mine in Botswana in 2023 – an increase over its previous forecast of $185-$215 million in 2022, IDEX Online reports.

Lucara also said it expects to sell 385,000 to 415,000 carats (up from 300,000 to 340,000 carats in 2022) and expects to recover 395,000 to 425,000 carats (an increase from 300,000 to 340,000 carats).

Recently, Lucara announced that it has extended its sales agreement with HB Trading to sell +10.8-carat rough diamonds from Karowe for another ten years. Lucara and HB partnered in 2020 to sell Karowe’s large, high-value diamonds “that have historically accounted for about 60% to 70% of its annual revenues,” according to a report by Rough & Polished.

                   Rough Diamond from Lucara

Source: DCLA

Gem Diamonds finds 129-carat diamond in Lesotho

                           

Africa focused Gem Diamonds has found a 129 carat rough stone at its Letšeng mine in Lesotho, the miner’s first one over 100 carats mined this year.

The high quality white diamond was recovered at the site over the weekend, Gem Diamonds said. The company, known for the recovery of large, high quality stones in 2020, has seen output of those diamonds become less frequent over the past year.

In 2021, Gem Diamonds found only six diamonds over 100 carats at Letšeng. This compares to 16 rocks of more than 100 carats discovered in 2020.

The find comes as prices for small diamonds have jumped about 20% since the start of March, as cutters, polishers and traders struggle to source stones outside Russia.

State-owned Alrosa, the world’s top diamond producer by output, was hit with US sanctions following Moscow’s invasion of Ukraine.

Higher prices for lower end stones are good news for miners, but not a game changer, experts say. While every mine is different, a general rule of thumb is that 20% of production the best stones account for about 80% of profits.

Since acquiring Letšeng in 2006, Gem Diamonds has found more than 60 white gem quality diamonds over 100 carats each.

Since acquiring Letšeng in 2006, the company has found more than 60 white gem quality diamonds over 100 carats each, with 16 of them recovered last year.

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.

Source: DCLA

Lucapa says 204 carat diamond recovered at Mothae mine in Lesotho

                    

Lucapa Diamond Company yesterday announced the recovery of a 204 carat diamond from the Mothae mine in Lesotho.

According to the company’s statement, the 204 carat white stone is the eighth +100 carat diamond and third +200 carat to be recovered from the Mothae mine since commercial mining commenced in January 2019, underlining its unique large stone nature.

Lucapa Diamond Company is an ASX listed diamond miner and explorer with assets in Africa and Australia. It has interests in two producing diamond mines in Angola (Lulo) and Lesotho (Mothae).

“The large, high-value diamonds produced from these two niche African diamond mines attract some of the highest prices per carat for rough diamonds globally,” the company said.

The Lulo mine has been in commercial production since 2015, while the Mothae mine commenced commercial production in 2019.

Source: DCLA

De Beers returns diamond sights to Gaborone as travel opens up

                      

De Beers is bringing its sales activities back to Botswana’s capital Gaborone, it said on Thursday, almost two years after the Covid-19 pandemic forced them to be held in cities including Antwerp and Dubai.

The Anglo American subsidiary had moved its pre-sale viewings – a marketing exercise to showcase its new batch of diamonds – from Botswana in May 2020 when travel restrictions to curb the pandemic prevented its international customers from flying to the Southern African country.

SIGN UP FOR THE PRECIOUS METALS DIGEST

Customers from across the world fly ten times a year to participate in week-long diamond sales, known as sights, in Botswana, which accounts for 90% of the company’s total annual sales.

“From March, we are bringing back the sights to Gaborone and we look forward to meeting again as an industry after a long time,” De Beers Executive Vice-President Diamond Trading Paul Rowley told a press briefing.

“We will of course maintain some flexibility for some customers who will still not be able to come to Botswana.”

The return is expected to bring in valuable foreign exchange to Botswana, which had lost out additional earnings from travel, hospitality and ancillary services, even though sales income still came to the country.

The majority of diamond mining in the country is done by Debswana, a company jointly held by De Beers and the Botswana government, which sells 75% of the diamonds mined to De Beers. The remaining 25% of the diamonds is sold to state-owned Okavango Diamond Company.

Apart from the large business delegations who visit the country ten times a year, the pre-sale viewings are known to attract more than 100 high net worth diamond magnates who spend heavily in the country.

Source: DCLA

BlueRock Concerned over Cash-Flow Shortage

                           

BlueRock Diamonds is in talks to receive financial help after operations at its Kareevlei mine in South Africa paused due to a possible safety breach.

“The suspension has impacted near-term cash-flow expectations, exacerbated by the fact that there is no planned diamond tender in Kimberley [in South Africa] in December,” BlueRock said last week. “The company is assessing how best to meet its working capital needs over this period.”

The miner is considering funding its December production through its existing relationship with Delgatto Diamond Finance, it explained.

While mining is on hold, meaning BlueRock cannot source any new production, it is currently processing ore stocks that built up before the rainy season began, management noted. The company still expects to meet its outlook of 22,000 to 26,000 carats for the full year, but believes output will be toward the lower end of that.

Last week, the Department of Mineral Resources and Energy (DMRE) visited the site and issued a notice under Section 54 of the Mine Health and Safety Act, which enables inspectors to call for the suspension of mine operations if they identify possible danger.

“The company remains in discussion with the DMRE in relation to the issues raised regarding BlueRock’s mining activities that remain suspended, and hopes to resolve these in the near future,” BlueRock added.

Source: DCLA

BlueRock Concerned over Cash-Flow Shortage

                           

BlueRock Diamonds is in talks to receive financial help after operations at its Kareevlei mine in South Africa paused due to a possible safety breach.

“The suspension has impacted near-term cash-flow expectations, exacerbated by the fact that there is no planned diamond tender in Kimberley [in South Africa] in December,” BlueRock said last week. “The company is assessing how best to meet its working capital needs over this period.”

The miner is considering funding its December production through its existing relationship with Delgatto Diamond Finance, it explained.

While mining is on hold, meaning BlueRock cannot source any new production, it is currently processing ore stocks that built up before the rainy season began, management noted. The company still expects to meet its outlook of 22,000 to 26,000 carats for the full year, but believes output will be toward the lower end of that.

Last week, the Department of Mineral Resources and Energy (DMRE) visited the site and issued a notice under Section 54 of the Mine Health and Safety Act, which enables inspectors to call for the suspension of mine operations if they identify possible danger.

“The company remains in discussion with the DMRE in relation to the issues raised regarding BlueRock’s mining activities that remain suspended, and hopes to resolve these in the near future,” BlueRock added.

Source: DCLA

Lucara Recovers 1,174 Carat Diamond from the Karowe Mine in Botswana

                 1,174.76 carat rough diamond

Lucara Diamond Corp. is pleased to announce the recovery of a 1,174.76 carat diamond from its 100% owned Karowe Diamond Mine located in Botswana.

The diamond, measuring 77x55x33mm, is described as a clivage gem of variable quality with significant domains of high-quality white gem material, and was recovered from direct milling of ore sourced from the EM/PK(S) unit of the South Lobe.

The 1,174 carat diamond represents the third +1,000 carat diamond recovered from the South Lobe of the AK6 kimberlite since 2015 including the 1,758 carat Sewelô and 1,109 carat Lesedi La Rona.

The 1,174.76 carat diamond was recovered in the Mega Diamond Recovery XRT circuit. On the same production day, several other diamonds of similar appearance (471 carat, 218 carat, 159 carat) were recovered at the main XRT circuit, indicating the 1,174 diamond was part of a larger diamond with an estimated weight of > 2000 carats.

The MDR is positioned after the primary crusher, ahead of the autogenous mill, and is the first opportunity for diamond recovery within the circuit.

Source: DCLA

Lucara Recovers 1,174 Carat Diamond from the Karowe Mine in Botswana

                 1,174.76 carat rough diamond

Lucara Diamond Corp. is pleased to announce the recovery of a 1,174.76 carat diamond from its 100% owned Karowe Diamond Mine located in Botswana.

The diamond, measuring 77x55x33mm, is described as a clivage gem of variable quality with significant domains of high-quality white gem material, and was recovered from direct milling of ore sourced from the EM/PK(S) unit of the South Lobe.

The 1,174 carat diamond represents the third +1,000 carat diamond recovered from the South Lobe of the AK6 kimberlite since 2015 including the 1,758 carat Sewelô and 1,109 carat Lesedi La Rona.

The 1,174.76 carat diamond was recovered in the Mega Diamond Recovery XRT circuit. On the same production day, several other diamonds of similar appearance (471 carat, 218 carat, 159 carat) were recovered at the main XRT circuit, indicating the 1,174 diamond was part of a larger diamond with an estimated weight of > 2000 carats.

The MDR is positioned after the primary crusher, ahead of the autogenous mill, and is the first opportunity for diamond recovery within the circuit.

Source: DCLA

Gem Diamonds ramps up production in Lesotho

 

Gem Diamonds announced Thursday that the company produced 29,010 carats at its Letšeng mine in Lesotho, which is 11% more than in Q1 2020 – 26,110 carats.

The company’s revenue for the period was US$43.9 million Q1 2020 – US$47.3 million and an average price achieved for the period was US$1,630 per carat Q1 2020 – US$1,615 per carat.

The company said that 5 diamonds sold for more than US$1.0 million each, generating revenue of US$12.4 million during the period.

The group ended the period with US$26.9 million of cash on hand excluding US$8.2 million of the March tender proceeds received after the period end. During the period, Letšeng paid the remaining dividend of US$10.0 million which was declared in 2020.

CEO Clifford Elphick commented, “It is pleasing to see that carat production during the period was up some 11% on the same period in 2020 and that the average price of US$1,630 per carat was also slightly up on Q1 2020. Although the production from the mining mix was not as impressive as the second half of 2020, with fewer large diamonds recovered due to the areas accessed under the mining plan, prices achieved on a like for like basis remained strong for Letšeng’s high value diamond production.”

The company said it anticipates that the mining mix should improve over the coming months as the richer parts of the Satellite pit are accessed in accordance with the mine plan.

Gem Diamonds is a leading global diamond producer of large high value diamonds. The company owns 70% of the Letšeng mine in Lesotho and is currently in the process of selling its 100% share of the Ghaghoo mine in Botswana. The Letšeng mine is famous for the production of large, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world.

Source: DCLA

Gem Diamonds ramps up production in Lesotho

 

Gem Diamonds announced Thursday that the company produced 29,010 carats at its Letšeng mine in Lesotho, which is 11% more than in Q1 2020 – 26,110 carats.

The company’s revenue for the period was US$43.9 million Q1 2020 – US$47.3 million and an average price achieved for the period was US$1,630 per carat Q1 2020 – US$1,615 per carat.

The company said that 5 diamonds sold for more than US$1.0 million each, generating revenue of US$12.4 million during the period.

The group ended the period with US$26.9 million of cash on hand excluding US$8.2 million of the March tender proceeds received after the period end. During the period, Letšeng paid the remaining dividend of US$10.0 million which was declared in 2020.

CEO Clifford Elphick commented, “It is pleasing to see that carat production during the period was up some 11% on the same period in 2020 and that the average price of US$1,630 per carat was also slightly up on Q1 2020. Although the production from the mining mix was not as impressive as the second half of 2020, with fewer large diamonds recovered due to the areas accessed under the mining plan, prices achieved on a like for like basis remained strong for Letšeng’s high value diamond production.”

The company said it anticipates that the mining mix should improve over the coming months as the richer parts of the Satellite pit are accessed in accordance with the mine plan.

Gem Diamonds is a leading global diamond producer of large high value diamonds. The company owns 70% of the Letšeng mine in Lesotho and is currently in the process of selling its 100% share of the Ghaghoo mine in Botswana. The Letšeng mine is famous for the production of large, exceptional white diamonds, making it the highest dollar per carat kimberlite diamond mine in the world.

Source: DCLA

Alrosa Raises Rough Prices Again

 

Alrosa has increased prices for the third consecutive contract sale, fueling concerns about unsustainable growth and tight manufacturing profits.

The adjustments were 4% to 5% on average, with a focus on 1-carat rough and larger, insiders told Rapaport News this week. Prices of that category are now higher than pre-pandemic levels, a customer noted.

Alrosa declined to comment on its “commercial strategy,” but a spokesperson said the Russian miner “assures that prices for its goods follow the real, confirmed demand from the midstream sector.”

The sale, which took place this week, came amid strong rough demand following positive holiday seasons in the US and China. But there were warnings of a slowdown as the quiet season approaches.

“Since the rough market is so strong, everyone accepts the [prices], but it’s becoming a bubble that might explode,” a source cautioned.

Industry members highlighted possible challenges for manufacturers. Rough prices have outpaced polished, they claimed, with the upcoming slow months raising concerns about end demand.

“[The miners have] taken away all the profit margin from the manufacturing pipeline, because…when the polished is ready, the polished market will be slightly weaker than today,” an Alrosa customer explained. “Probably, we will all lose some money, and not even make the costs.”

Alrosa maintained its policy of allowing customers to refuse any unwanted goods — a concession that has been in place since the start of the pandemic.

However, some clients felt compelled to buy to ensure they retain their allocations in the new contract period, which begins April 1, one customer pointed out. Even so, rough sales at the trading session will likely be lower than the $421 million it reported for January and the $361 million it garnered in February, reflecting a drop in the miner’s supply, he added.

De Beers: Less availability

De Beers will also offer limited supply at its sight next week as its reduced production plan for 2021 has affected availability. Sources expect sales of around $400 million, compared with $663 million in January and $550 million in February. The company lowered its full-year production forecast in January because of operational issues at some of its mines.

“We continue to take a prudent approach with our mine plans given the ongoing pandemic and associated uncertainty,” a De Beers spokesperson said Wednesday.

With fewer goods on the table, further price increases by De Beers are unlikely at next week’s sale, a sightholder predicted. The miner already increased prices in December, January and February, reversing a sharp price cut it implemented in August.

“There was a major pushback on the goods last month,” the sightholder commented. “In anything that [produces] pointers and large [polished goods], they went way too far, and everybody said so. There were also refusals. If [prices] go up now, everyone will just leave the goods.”

Source: DCLA

Alrosa Raises Rough Prices Again

 

Alrosa has increased prices for the third consecutive contract sale, fueling concerns about unsustainable growth and tight manufacturing profits.

The adjustments were 4% to 5% on average, with a focus on 1-carat rough and larger, insiders told Rapaport News this week. Prices of that category are now higher than pre-pandemic levels, a customer noted.

Alrosa declined to comment on its “commercial strategy,” but a spokesperson said the Russian miner “assures that prices for its goods follow the real, confirmed demand from the midstream sector.”

The sale, which took place this week, came amid strong rough demand following positive holiday seasons in the US and China. But there were warnings of a slowdown as the quiet season approaches.

“Since the rough market is so strong, everyone accepts the [prices], but it’s becoming a bubble that might explode,” a source cautioned.

Industry members highlighted possible challenges for manufacturers. Rough prices have outpaced polished, they claimed, with the upcoming slow months raising concerns about end demand.

“[The miners have] taken away all the profit margin from the manufacturing pipeline, because…when the polished is ready, the polished market will be slightly weaker than today,” an Alrosa customer explained. “Probably, we will all lose some money, and not even make the costs.”

Alrosa maintained its policy of allowing customers to refuse any unwanted goods — a concession that has been in place since the start of the pandemic.

However, some clients felt compelled to buy to ensure they retain their allocations in the new contract period, which begins April 1, one customer pointed out. Even so, rough sales at the trading session will likely be lower than the $421 million it reported for January and the $361 million it garnered in February, reflecting a drop in the miner’s supply, he added.

De Beers: Less availability

De Beers will also offer limited supply at its sight next week as its reduced production plan for 2021 has affected availability. Sources expect sales of around $400 million, compared with $663 million in January and $550 million in February. The company lowered its full-year production forecast in January because of operational issues at some of its mines.

“We continue to take a prudent approach with our mine plans given the ongoing pandemic and associated uncertainty,” a De Beers spokesperson said Wednesday.

With fewer goods on the table, further price increases by De Beers are unlikely at next week’s sale, a sightholder predicted. The miner already increased prices in December, January and February, reversing a sharp price cut it implemented in August.

“There was a major pushback on the goods last month,” the sightholder commented. “In anything that [produces] pointers and large [polished goods], they went way too far, and everybody said so. There were also refusals. If [prices] go up now, everyone will just leave the goods.”

Source: DCLA