JSE-listed diamond producer BRC Diamondcore has implemented a strategic suspension of its bulk sampling projects in the Northern Cape, in view of the current depressed diamond prices.

“While there is a clear short-term need to conserve cash in light of current market conditions, we anticipate a recovery in rough diamond prices in 2009. This, together with a stronger US dollar exchange rate against our operating currency and lower energy costs, should position us more favourably in the year ahead,” said BRC Diamondcore president Mike de Wit.

continue reading "BRC suspends Northern Cape bulk sampling projects"

MINING and exploration activity in the diamond sector is showing signs of flagging, in line with the rest of the commodities sector, with notices from three companies this week that they were curtailing operations in southern Africa.

Diamond industry leaders, who met in Antwerp two weeks ago, insisted the fundamentals for the industry were sound but agreed on the need to cut back on rough diamond supply in the short term.

According to industry website Rap aport, which reported on the Antwerp Diamond Symposium, the main diamond producers said they would cut output of rough diamonds, and supported a proposal to create an industry body responsible for generic promotion of diamonds to consumers.

continue reading "Diamond miners cut back as sector loses its lustre"

The Debswana management recently asked for a joint meeting with mine union leaders in a quest to refute claims of possible job losses within the diamond mining community.

This development came after the management learned that the miners, whose population in Orapa alone is close to 6500, were in constant fears of losing their jobs in the coming year.

The fears were awakened by the admission by top management that the diamond industry will be amongst the hardest hit by the global credit crunch.

That, plus the fact that for the past five years or so, Debswana has had a history of tactfully relieving employees of their duties.

continue reading "Dark future looms ahead for mine workers"

The Chamber of Mines (CoM) has described the first half of 2008 as a difficult period for the South African diamond-mining industry, characterised by an electricity crisis and rationalisation initiatives, and the closure of certain operations, which resulted in an 8,1% year-on-year decline in production.

The organisation’s annual report for the 2007/8 financial year, released this month, indicates that the implementation of the new Diamond Amendment Act has also resulted in challenges for the diamond-mining and cutting sectors.

In 2007, the country exported 13, 9-million carats and imported 1, 2-million carats of gem-quality diamonds. This, says the CoM, indicates that the local diamond industry has helped import gem-quality diamonds from its offshore production for the local cutting and polishing indus- try.

continue reading "Chamber describes first half of 2008 as difficult period for diamonds sector"

The Northwest Territories’ three diamond mines signed an agreement with the government Thursday, promising to work together to ensure more northerners are working in diamond mining.

Senior executives with BHP Billiton, Diavik Diamond Mines and De Beers Canada were in Yellowknife to sign a memorandum of understanding with Industry, Tourism and Investment Minister Bob McLeod and Education Minister Jackson Lafferty.

While the agreement is non-binding and does not make specific committments, it is being hailed as a unique opportunity — especially in a gloomy economic climate — for the three competing mines to work together and with the government.

“No single party owns all the levers to this problem,” Diavik mine president Kim Truter said at Thursday’s announcement.

“We’ve got to each pull our levers, and we’ve got to do it together. So that’s why we believe in this initiative so strongly.”

continue reading "N.W.T. diamond mines, government pledge to expand northern workforce"

An Australia-based company’s plans to look for diamonds in rural northern Larimer County have been delayed because of economic concerns.

DiamonEx was planning to do exploratory drilling in a 3-acre parcel in North Rabbit Creek Valley, about 9 miles west of U.S. 287. The area, also known as Sloan Ranch, could yield thousands of diamonds and be at least as successful as the company’s Lerala Diamond Mine in Botswana, according to the company.

Officials had been hoping to approach Larimer County for a drilling permit that could lead to a full-scale excavation project. But last week the company told the county that it would delay its application because of “current market conditions.”

continue reading "Diamond mining delayed in Larimer"

Guinea has canceled a diamond mining license held by Aredor, which is 85 percent owned by Toronto-listed Azure Resources Corp , the government said on Saturday.

Aredor is the largest diamond mining operator in the West African country but the government accused it earlier this year of having stopped all activities for three years despite promising various ministers it would restart its operations.

“The cabinet unanimously approved the decision,” said government spokesman Tibou Kamara.

Guinea’s government is reviewing a number of minerals contracts in an effort to maximize state revenues. Guinea is the world’s top exporter of the aluminum ore bauxite, making mining the impoverished country’s main source of foreign exchange.

continue reading "Guinea cancels Aredor diamond mining license"

ASX-listed Paramount Mining Corporation is recovering a substantial amount of diamonds from testing a hard rock source on its Osenase project, in Ghana.

Paramount had previously investigated the same area in 2006. In the initial 2006 testwork the company recovered 42 diamonds from 6 m3 of heavily lateritised rock at a location known as the Francis Pit. Since then, the Osenase concession has been renewed as a prospecting licence, under which more intensive testwork is permitted.

The current exploration programme at Osenase started with opening up a trench parallel to the trench dug out in 2006. This was done to learn more about the diamond distribution within, and the nature of, the highly weathered rock being investigated.

continue reading "Hard rock source in Ghana yields more diamonds"

Gem Diamonds, the junior diamond miner, punched- the- air Friday as government approved its environmental impact assessment study, bringing it closer to the approval of its diamond mining licence in Gope — within the Central Kgalagadi Game Reserve (CKGR).

“We are very pleased with this development as it brings us one step closer to realizing our ambition to develop a mine at Gope.

“This EIA would have been meaningless if we had not consulted widely with all interested and affected parties. We did this over a seven months period across 400 kilometers radius around the proposed site,” Haile Mphusu, Managing Director of Gope Exploration, which is a subsidiary of Gem Diamonds, said in a statement.

The diamond company already has ongoing operations in Australia, DRC, Indonesia, and Lesotho has filed a mining licence for the proposed mining licence in Gope.

continue reading "Gem Diamonds moves closer to mining licence"

Brazilian Diamonds Limited (”Brazilian Diamonds” or “the Company”) (TSX:BDY)(AIM:BDY) reports that field operations at its Salvador kimberlite project in central Bahia State, Brazil have been completed. Following reporting of initial results (see news release dated September 4, 2008) additional samples have been sent to the laboratory for analysis and on receipt of the results, the Company will assess the next steps for the project. All the field equipment has been moved to the Santo Antonio do Bonito project site in Minas Gerais State where the Company is investigating the possibility of re-starting operations.

Brazilian Diamonds has an extensive license position at Santo Antonio do Bonito covering the famous diamond producing river system where historical and government records document recovery of numerous large high quality gem diamonds greater than 90 carats, including the 726.6 carat Presidente Vargas and eight other gems greater than 300 carats. It should be noted that, although the timing and recovery sites of these highly valuable large stones are reasonably well documented in records dating back to the 1930s, detailed production figures and size distributions for this historical artisanal production do not exist.

Brazilian Diamonds’ focus will be on the alluvial gravels in the portion of the river valley where the highest concentration of +300 carat diamonds have been recovered to date.

Harrison Cookenboo, Ph.D., P.Geo., is a Qualified Person by the standards of NI43-101, and has approved the contents of this news release. Further details of the projects are available in NI43-101 technical report filed on www.sedar.com in March, 2007.

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