Gem Diamonds finally sells its failed Botswana mine

The miner has sold Ghaghoo for a fraction of what it cost to build as it fails yet again to diversify away from its Letšeng mine in Lesotho

Gem Diamonds has sold its Ghaghoo operation for a fraction of what it cost to build what was Botswana’s first underground diamond mine, as it failed yet again to diversify away from its Letšeng mine in Lesotho.

Gem Diamonds agreed to sell its failed Ghaghoo mine in Botswana to Pro Civil, a local company, for $5.4m USD.

London-listed Gem, which has had a string of setbacks in attempting to diversify its portfolio away from being a single-asset company with its Letšeng mine in Lesotho, invested about $90m in building the first phase of Ghaghoo.

In March 2017, Gem reported a $170m impairment against Ghaghoo after mothballing the mine in the Central Kalahari Game Reserve in February, as low prices for smaller rough diamonds pushed the operation into a loss.

There was no information about the Pro Civil business in the Gem statement on Thursday, and internet searches proved fruitless. No indication was given about what Pro Civil intended doing with Ghaghoo once the deal closes in the third quarter of 2019.

Gem said it had reached a binding agreement with Pro Civil for the sale of the London-listed company’s wholly owned subsidiary Gem Diamonds Botswana for an upfront payment of $5.4m.

“On behalf of Gem, we wish the Pro Civil team well for the future, and I would also like to thank the government of Botswana for its assistance during the sale process,” said Gem CEO Clifford Elphick.

The Botswana subsidiary reported a pretax loss of $4.9m in the year to end-December 2018 and gross assets of $3.9m.

Ghaghoo, when it was officially opened in September 2014, had expected to sell its diamonds for about $260/carat, but by 2017 it was realising prices of nearly half that number.

Ghaghoo, the first underground diamond mine in Botswana, was a difficult mine to build. A decline shaft was sunk through an 80m-thick layer of loose Kalahari Desert sand in a remote location in the north of the country.

Part of the reason to go underground, instead of building an opencast mine, was to reduce the size of the mining footprint in the game reserve to 20km² instead of 100km².

The mining project started in October 2011 and did not come close to reaching commercial production of 150,000 carats a year.

Gem’s attempts to extend operations beyond its Letšeng mine in Lesotho have been unsuccessful — the Ellendale mine in Australia was sold for $15m in 2012 and the Cempaka alluvial mine in Indonesia was closed in 2008.

Exploration efforts in Angola and elsewhere in Africa came to naught.

Gem would now focus on improving Letšeng, said Elphick, adding the $5.4m would be put towards “general corporate purposes”.

“Every little bit will help,” said Shore Capital analyst Yuen Low, pointing out that large-diamond recoveries at Letšeng had been poor recently.

“In the first half of 2019, Gem recovered only two stone greater than 100 carats (versus 10 in first half 2018), continuing the falling trend that became evident in the second half of 2018,” he said.

Letšeng is the world’s richest diamond mine when measured by dollars achieved per carat, consistently delivering large, high-quality diamonds.

Source: bdfm.co.za

Gem Diamonds finally sells its failed Botswana mine

The miner has sold Ghaghoo for a fraction of what it cost to build as it fails yet again to diversify away from its Letšeng mine in Lesotho

Gem Diamonds has sold its Ghaghoo operation for a fraction of what it cost to build what was Botswana’s first underground diamond mine, as it failed yet again to diversify away from its Letšeng mine in Lesotho.

Gem Diamonds agreed to sell its failed Ghaghoo mine in Botswana to Pro Civil, a local company, for $5.4m USD.

London-listed Gem, which has had a string of setbacks in attempting to diversify its portfolio away from being a single-asset company with its Letšeng mine in Lesotho, invested about $90m in building the first phase of Ghaghoo.

In March 2017, Gem reported a $170m impairment against Ghaghoo after mothballing the mine in the Central Kalahari Game Reserve in February, as low prices for smaller rough diamonds pushed the operation into a loss.

There was no information about the Pro Civil business in the Gem statement on Thursday, and internet searches proved fruitless. No indication was given about what Pro Civil intended doing with Ghaghoo once the deal closes in the third quarter of 2019.

Gem said it had reached a binding agreement with Pro Civil for the sale of the London-listed company’s wholly owned subsidiary Gem Diamonds Botswana for an upfront payment of $5.4m.

“On behalf of Gem, we wish the Pro Civil team well for the future, and I would also like to thank the government of Botswana for its assistance during the sale process,” said Gem CEO Clifford Elphick.

The Botswana subsidiary reported a pretax loss of $4.9m in the year to end-December 2018 and gross assets of $3.9m.

Ghaghoo, when it was officially opened in September 2014, had expected to sell its diamonds for about $260/carat, but by 2017 it was realising prices of nearly half that number.

Ghaghoo, the first underground diamond mine in Botswana, was a difficult mine to build. A decline shaft was sunk through an 80m-thick layer of loose Kalahari Desert sand in a remote location in the north of the country.

Part of the reason to go underground, instead of building an opencast mine, was to reduce the size of the mining footprint in the game reserve to 20km² instead of 100km².

The mining project started in October 2011 and did not come close to reaching commercial production of 150,000 carats a year.

Gem’s attempts to extend operations beyond its Letšeng mine in Lesotho have been unsuccessful — the Ellendale mine in Australia was sold for $15m in 2012 and the Cempaka alluvial mine in Indonesia was closed in 2008.

Exploration efforts in Angola and elsewhere in Africa came to naught.

Gem would now focus on improving Letšeng, said Elphick, adding the $5.4m would be put towards “general corporate purposes”.

“Every little bit will help,” said Shore Capital analyst Yuen Low, pointing out that large-diamond recoveries at Letšeng had been poor recently.

“In the first half of 2019, Gem recovered only two stone greater than 100 carats (versus 10 in first half 2018), continuing the falling trend that became evident in the second half of 2018,” he said.

Letšeng is the world’s richest diamond mine when measured by dollars achieved per carat, consistently delivering large, high-quality diamonds.

Source: bdfm.co.za

Rio trenches bulk sample for Star at Star-Orion South

For the first time a trench cutter sampling system is being used to take a bulk sample of a Canadian kimberlite. Such equipment is normally used in specialist foundation engineering, rather than mineral exploration.

The rig cut a hole to a depth of 228.4 metres at the Star-Orion diamond project which is wholly owned by Saskatoon-based Star Diamond. The hole produced 704 bags of kimberlite. The operator of the project is Rio Tinto Exploration Canada.

The trenching rig consists of a Bauer BC 50 cutter mounted on a Bauer MC 128 duty cyclone crane. There is also a kimberlite separation unit and a desanding unit. The kimberlite will be stored in a secure area at the site until a bulk sample plant can be build and commissioned at the project. Rio will undertake final diamond recovery.

Star’s senior VP of exploration and development George Read said, “The successful use of this new trench cutter sampling rig technology for the recovery of kimberlite bulk samples has the ability to revolutionize future bulk sampling and mining of kimberlites, particularly for kimberlites characteristic of the Fort à la Corne diamond district.”

Source: DCLA

Rio trenches bulk sample for Star at Star-Orion South

For the first time a trench cutter sampling system is being used to take a bulk sample of a Canadian kimberlite. Such equipment is normally used in specialist foundation engineering, rather than mineral exploration.

The rig cut a hole to a depth of 228.4 metres at the Star-Orion diamond project which is wholly owned by Saskatoon-based Star Diamond. The hole produced 704 bags of kimberlite. The operator of the project is Rio Tinto Exploration Canada.

The trenching rig consists of a Bauer BC 50 cutter mounted on a Bauer MC 128 duty cyclone crane. There is also a kimberlite separation unit and a desanding unit. The kimberlite will be stored in a secure area at the site until a bulk sample plant can be build and commissioned at the project. Rio will undertake final diamond recovery.

Star’s senior VP of exploration and development George Read said, “The successful use of this new trench cutter sampling rig technology for the recovery of kimberlite bulk samples has the ability to revolutionize future bulk sampling and mining of kimberlites, particularly for kimberlites characteristic of the Fort à la Corne diamond district.”

Source: DCLA

SELL YOUR DIAMOND

DCLA can help you sell or auction your diamond jewellery and get you the correct value:

If you are you considering selling your diamond, but feel as though you have no idea how or where to begin with the process?

This article will give you a few tips to help you along the way.

TIP #1 Diamonds are usually given to display love, making the sentimental value higher to the seller than the actual value to a buyer. Should you be in the market to sell your diamond, make sure you are ready to part with the diamond before beginning the process.

TIP #2 Be sure of the quality and authenticity of what you are trying to sell. Make sure of the quality and the grade of the stone. This is most important for the ultimate value of the diamond. There have been many instances where a seller is committed to selling their diamond only to find out the quality isn’t as described when originally purchased.

There are Jewellers or services available, who will give an unbiased assessment of your stone. But it is far more valuable in the long run to get a report from a recognised Laboratory.

It is also recommended to verify the report matches the Laser inscription before placing your diamond on the market, to assure your diamond is the same stone should it not sell.

TIP #3 Now that you have an accurate report of the quality, make sure you get a realistic selling value. Believing the diamond holds a higher value than it truly possesses will lead to a challenging, frustrating experience which can be dragged out.

An appraiser can assist you with determining a fair selling, price so you can avoid this pitfall. Diamonds are priced in US dollars, so your diamonds price will be affected when converted to your local currency.

A good way to see current retail values is to visit online stores like www.dcladiamondexchange.com.au or bluenile.com.

TIP #4 There are many ways to sell a preloved diamond or diamond jewellery. Research your selling options to make an educated decision that works best for you. Be it an online market or exploring options through a local jeweller or dealer, be sure you are using the best option for your needs.

Example, if time is not of the essence, an online market or an auction house could be the best way forward. If you want a quick sale, visiting your local dealer may be the best option.

DCLA Diamond Laboratory provides an internationally recognised and respected report to any seller or prospective buyer.

DCLA will provide you with an experience expert to advise you and give you the accurate value protecting you when selling. Our goal is to provide you with as much knowledge as possible.

Visit www.dcla.com.au for information advice or to make an appointment.

Or call us on 1300 413 425 or Sydney 02 92612104

SELL YOUR DIAMOND

DCLA can help you sell or auction your diamond jewellery and get you the correct value:

If you are you considering selling your diamond, but feel as though you have no idea how or where to begin with the process?

This article will give you a few tips to help you along the way.

TIP #1 Diamonds are usually given to display love, making the sentimental value higher to the seller than the actual value to a buyer. Should you be in the market to sell your diamond, make sure you are ready to part with the diamond before beginning the process.

TIP #2 Be sure of the quality and authenticity of what you are trying to sell. Make sure of the quality and the grade of the stone. This is most important for the ultimate value of the diamond. There have been many instances where a seller is committed to selling their diamond only to find out the quality isn’t as described when originally purchased.

There are Jewellers or services available, who will give an unbiased assessment of your stone. But it is far more valuable in the long run to get a report from a recognised Laboratory.

It is also recommended to verify the report matches the Laser inscription before placing your diamond on the market, to assure your diamond is the same stone should it not sell.

TIP #3 Now that you have an accurate report of the quality, make sure you get a realistic selling value. Believing the diamond holds a higher value than it truly possesses will lead to a challenging, frustrating experience which can be dragged out.

An appraiser can assist you with determining a fair selling, price so you can avoid this pitfall. Diamonds are priced in US dollars, so your diamonds price will be affected when converted to your local currency.

A good way to see current retail values is to visit online stores like www.dcladiamondexchange.com.au or bluenile.com.

TIP #4 There are many ways to sell a preloved diamond or diamond jewellery. Research your selling options to make an educated decision that works best for you. Be it an online market or exploring options through a local jeweller or dealer, be sure you are using the best option for your needs.

Example, if time is not of the essence, an online market or an auction house could be the best way forward. If you want a quick sale, visiting your local dealer may be the best option.

DCLA Diamond Laboratory provides an internationally recognised and respected report to any seller or prospective buyer.

DCLA will provide you with an experience expert to advise you and give you the accurate value protecting you when selling. Our goal is to provide you with as much knowledge as possible.

Visit www.dcla.com.au for information advice or to make an appointment.

Or call us on 1300 413 425 or Sydney 02 92612104

Diamond Store’s Shutdown Leaves Customers Seeking Gems, Money And Answers

A popular diamond business appears to have abruptly shut down, leaving paying customers without their jewelry.

The company website says it is not accepting orders and a growing number of disgruntled Enchanted Diamonds customers like Rebecca Zuzula say they never received the precious stones they paid for.

“Many of us wired the money,” said Zuzula. “Several used a credit card but as of maybe the first week of June or so, we quit hearing back from the owner.”

The Better Business Bureau in New York City says it has recently received 24 complaints from consumers in 11 states about transactions with Enchanted Diamonds.

Zuzula says her jewelry was supposed to be an anniversary gift from her husband.

She claims Enchanted Diamonds president Joshua Niamehr took their money and disappeared.

“I think he stole more than money from people,” said Zuzula. “I think he stole their memories.”

Several customers originally discovered Enchanted Diamonds on the website RareCarat, a search engine for diamonds and diamond dealers.

Ajay Anand, the CEO of Rare Carat, tells CBS2 it will file a lawsuits and pay legal fees for those claiming to be victims of Enchanted Diamonds whether they used his site to find the company or not.

He says he’s heard from more than 60 alleged victims.

“We did everything we could to vet this company,” said Anand. “This was unforeseeable. I think all the evidence will point to that.”

CBS2’s attempts to contact the president of Enchanted Diamonds were unsuccessful.

Some frustrated customers say they plan to sue.

The Better Business Bureau says anyone who thinks they’re a victim should file a complaint with them or a report with the New York state attorney general.

Source: DCLA