Star Diamond Corporation
Saskatchewan Diamond Exploration
Message: Depleting roughs set alarm bells ringing in Surat
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Melvyn Thomas, TNN | Apr 30, 2012, 10.03PM IST
SURAT: The latest figures by Kimberley Process Certification Scheme (KPCS), international diamond regulators, on the global diamond production have set the alarm bells ringing in the world's biggest diamond cutting and polishing centre in Surat. The production of rough diamonds around the world has depleted by about 20% at 120 million carats this year compared to 150 million carats in 2007.
Industry sources said India is the biggest consumer of roughs in the world. In 2010-11, India imported about $11 billion worth of roughs while about polished diamonds worth $28 billion were exported.
Varda Shine, managing director of Diamond Trading Company (DTC), who recently visited Gaborone in Botswana where De Beers is shifting its sales and aggregation activities from its London office, said, "We do not anticipate the production to go back to 150 million carats a year for another two to three years."
Diamond producers have struggled to find new large mines to replace aging assets. Production at many of the world's biggest mines is falling as supplies of more accessible diamonds near the surface are depleted. De Beers' Orapa mine in Botswana began output in 1971, while its Jwaneng project - world's largest diamond mine by production value - and Rio's Argyle started in 1982. The last major mine to enter production was Rio's Diavik in 2003.
Rough diamond prices rose 24% last year after two consecutive annual gains of 32% as producers struggled to keep pace with consumption. That advance could be prolonged as stagnant production fails to satisfy surging demand from China and India. However, the recent research by US-based consultancy firm Bain & Co. stated that the use of diamonds may grow at double the pace of supply through 2020 because of an expanding middle class in India and China.
Sanjay Kothari, vice-chairman, Gems and Jewellery Export Promotion Council (GJEPC), told TOI, "Depleting diamond production the world over is a cause for concern. But, we have Zimbabwe and other African countries where the roughs reserve is quite high and largely remain unexplored. We have to tap these countries in order to satisfy the needs of the diamond industry."
A DTC sightholder said, "Some diamond categories like the large and natural coloured stones are going to be a rarity because diamond production is depleting due to old mines. There are no new discoveries in the sector in the recent years and thus the supplies are likely to remain very low."
http://timesofindia.indiatimes.com/city/surat/Depleting-roughs-set-alarm-bells-ringing-in-Surat/articleshow/12940045.cms
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In part from the article, "large and natural coloured stones are going to be a rarity." This might be the right time to start promoting the high percentage of large natural coloured rough diamonds that will be available in Shore Gold's Star Diamond Project. Show us the money and help open our first of many mines in the huge FALC Diamond District.
We need more News Releases like the one below to get renewed interest in Shore Gold. JMHO See what you see...
Shore Gold's Star Diamond Project in Letseng's League
Company notes presence of both Type Ia and Type IIa diamonds.
Jun 10, 2010 5:23 AM By Avi Krawitz
RAPAPORT... Shore Gold reported that its Star underground project in Canada contains diamonds in the league of those from the Letseng mine in Lesotho. George Read, Shore’s vice president of exploration and development, said that 26 percent of all diamonds larger than 2.7 carats from a Star bulk sample are Type IIa diamonds.
“Type IIa diamonds are rare and account for probably less than 2 percent of all natural rough diamonds in the world,” Read explained. “Only a small number of active diamond mines regularly produce Type IIa diamonds and the most important of these mines is Letseng-la-Terae (the Letseng Mine) in the Kingdom of Lesotho.”
He added that a recent study on 2.7-carat-plus diamonds from Star showed that the project has a similar proportion of Type IIa diamonds to Letseng and that many Type IIa stones tend to come in larger sizes.
"The presence of a significant proportion of Type IIa diamonds greatly increases the potential for the recovery of large (100-carat-plus), high-value diamonds at Star,” Read said.
He noted that a sample evaluation of Star diamonds showed that the mine contains both top white octahedral diamonds — Type Ia — and a significant proportion of Type IIa diamonds, some of which are top white in color.
“The presence of these two high-value diamond groups [octahedra and Type IIa] greatly strengthens the future potential production diamond pricing at Star," he said.
In a separate report, a revaluation of diamond parcels from Shore Gold’s Star and Orion South kimberlites showed price increases of 11 percent to 19 percent against valuations conducted in March 2008. The modeled prices now range between $116 and $344 per carat, the company stated.
“The updated modeled diamond prices will have a significant effect on the future economics of the Star-Orion South Diamond Project,” the company said.
“Type IIa diamonds are rare and account for probably less than 2 percent of all natural rough diamonds in the world,” Read explained. “Only a small number of active diamond mines regularly produce Type IIa diamonds and the most important of these mines is Letseng-la-Terae (the Letseng Mine) in the Kingdom of Lesotho.”
He added that a recent study on 2.7-carat-plus diamonds from Star showed that the project has a similar proportion of Type IIa diamonds to Letseng and that many Type IIa stones tend to come in larger sizes.
"The presence of a significant proportion of Type IIa diamonds greatly increases the potential for the recovery of large (100-carat-plus), high-value diamonds at Star,” Read said.
He noted that a sample evaluation of Star diamonds showed that the mine contains both top white octahedral diamonds — Type Ia — and a significant proportion of Type IIa diamonds, some of which are top white in color.
“The presence of these two high-value diamond groups [octahedra and Type IIa] greatly strengthens the future potential production diamond pricing at Star," he said.
In a separate report, a revaluation of diamond parcels from Shore Gold’s Star and Orion South kimberlites showed price increases of 11 percent to 19 percent against valuations conducted in March 2008. The modeled prices now range between $116 and $344 per carat, the company stated.
“The updated modeled diamond prices will have a significant effect on the future economics of the Star-Orion South Diamond Project,” the company said.
These include a probable increase in mineral reserves, as well as in the project's financial model.
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