DIAMONDS:

Still a Girl’s best friend

Dr John Bristow

U3A Hermanus Presentation

19 October 2021

Global Diamond Network

Global Diamond Network 1
Contents
Part-1: Natural diamonds
1. Introduction & History (2 000 year old business)
2. Diamonds and their Uses (Numerous applications)
3. World Production & Pricing (No two diamonds the same)
4. Kimberlites, Lamproites, and Alluvial deposits
5. Primary Diamond Deposits (Kimberlites and Lamproites)
6. Natural Diamond Features (Run of mine diamond value – ROM )
6. Long History (India, Brazil, RSA)
7. Lead Producers (Russia, Botswana, Canada)
8. Secondary Diamond Deposits (Alluvial or Placer)
9. Conclusions

Global Diamond Network 2

Carbon, graphite and diamond
Carbon
 Density - 2.25 g/cm³ for graphite, 3.51 g/cm³ for
diamond
 Melting point of graphite – 3 500ºC, extrapolated
boiling point is 4830ºC
 Elemental carbon is an inert substance, insoluble in
water, diluted acids and bases, as well as organic
solvents
 At high temperatures it binds with oxygen to form
carbon monoxide or dioxide

 No element is more essential to life than Carbon

 Only Carbon forms strong single bonds to itself
stable enough to resist chemical attack under
ambient conditions
Carob seed ~ initial
 Forms long chains and rings of atoms, which are the
‘carat’ weight
structural basis for many compounds that comprise
1 carat = 0.20 gms
the living cell
1 carat = 100 points
 The most important is DNA
‘1-grainer’ = 25 points

Global Diamond Network 3

 Ancient diamond history Sinbad the Sailor
The Valley of Diamonds

 Earliest diamonds found in India in the 4th century BC – Krishna

River alluvial deposits which yielded exceptional large stones

 Name is derived from the Greek word adamas (“unconquerable”)

 Became an enduring symbol and commemoration of love,

romance, and commitment

 Initially traded by the Moghuls Rulers of India at Golconda Fort

(near today’s Hyderabad)
Kohinoor, Oval brilliant, DIF
 Early stones were transported along the Silk Road Trade-routes 105,6 carats (Cut), 793 (Uncut)
that connected India and China

 Valued for their strength and brilliance, ability to refract light,

engrave metal, adornments, a talisman to ward off evil, and to
provide protection in battle

 In the Dark Ages, used as a medical aid to cure illness and heal
wounds when ingested.

Global Diamond Network 4

Diamonds: production & many Uses
 2020 natural diamond production ~ 107 m
carats (21,4 tonnes)
 Value ~ $9.2 billion (in the rough)
 Retail diamond jewellery ~ $65 billion

 Synthetic diamond production ~ ??

 Value ~ $13.4 billion Uses continued:
6. Cancer treatment via diamond nanoparticles
Uses 7. Bio-imaging using nanoparticles
8. Cutting, grinding & polishing tools
1. Traditional Jewellery & adornment 9. Drawing tungsten wire
2. Beauty treatment (“diamond-flecked spray is popular 10. Drill bits (large and small)
among celebrities”) 11. Safety glass, Coatings & hardening of surfaces
3. Wrinkle treatment and facial exfoliation (“Diamond 12. Super-computing – exceptional heat and
speckled blurring agents are now a must-have treatment for electrical conductivity, storage capacity
anyone wishing to get rid of wrinkles”) (replacing silicon)
13. Heat sinks
4. Surgical tools, Scalpels, Dental drills etc 14. Spacecraft windows
5. Biomedical applications, protein mimics, 15. Super lasers
nanocomposite filler material 16. Sound speakers & DJ mixers
Global Diamond Network 5
 Commodity prices
Available on several live platforms 24/5
 Prices change constantly as trade, barter, &
markets fluctuate
 London Metals Exchange (LME) - well known
trading platform
Rough Diamonds
 No single standard or daily price
 No two diamonds are the same
 ROM – run-off-mine concept for ‘value’ for rough
goods (geologists)

Commodity Prices – 18 June 2020 @ 5.00pm

Actual Chg
%Chg
Crude Oil 38.7100 0.75 1.98 %
Brent 41.4100 0.88
2.17 %
Natural gas 1.6370 0.006
0.37 %
Gasoline 1.2440 0.037
3.07 %
Heating oil 1.1905 0.0166
1.41 %
Gold 1724.15 4.7 -
0.27 %
Silver 17.4300 0.0515 - Run of mine layout of rough diamonds from
0.29 % Petra Diamonds RSA kimberlite diamond
Copper 2.5970 mines for sorting, grading, & initial ‘valuation’
0.005 0.19 %
Lithium 41,500.00 0.00
Iron Ore Global
104.20
Diamond Network 4.00 6
3.80%
Kimberlite, Lamproite & Alluvial (placer) Deposits

Global Diamond Network 7

Diamond Mines – Kimberlites, Lamproites & Alluvials

Gahcho Kue

Brauna

Mine closed

Global Diamond Network 8

Primary diamond deposits K-2
K-1
Kimberlite & Lamproites K-3

 ‘Ancient volcanoes’ – dykes, pipes, and craters

 ‘Passenger trains’ that sample the diamond stability-field in the deep
mantle/lithosphere
 Relocate their ‘passengers ‘(diamonds) to the earths-surface
 Inefficient process – many kimberlites and lamproites, but very few
are economic

K-3
K-2

K-1

 Jwaneng kimberlite mine (Botswana)

 World’s richest diamond mine
 Multiple kimberlite intrusions
Global Diamond Network  Original size at surface ~54 ha 9

 Intrusion age ~ 240 my

Southern Africa kimberlites General geology of Cullinan (Premier) mine
Multiple intrusions - vary in geology, grade, diamond populations

Global Diamond Network 10

Kimberlites in thin-section
Wesselton mine
Group-1 kimberlite
Kimberley (RSA)

Letseng mine
Group-a kimberlite
(Lesotho)

Global Diamond Network 11

Western Australian lamproites

~1 107Ma

~20Ma

Global Diamond Network 12

Diamonds - growth features
 Laser-slices seen under thermoluminescence
 Diamond growth is typically complex
 Initiated from ‘seeds’ of proto-diamond

• ‘Picasso’s diamond’, Guaniamo, Venezuela

• 2mm
Global Diamond across (Dan Schulze, Univ Edinburgh)
Network 13
Diamond inclusions Peridotitic garnet

Purple peridotitic garnet

 Sulfide inclusion in rough diamond - Jwaneng Mine (Botswana) -

photomicrograph shows natural diamond growth surface
 Below the surface in centre is a brass-colored, hexagonal-shaped
iron-sulfide inclusion surrounded by irregular black rim caused
by internal fracture of the diamond on ascent to the earth’s
surface
 Sulfide inclusions are removed for sulfur isotopic analysis and
dating

Global Diamond Network 14

Argyle diamond mine
Closed, undergoing rehabilitation with local community

Global Diamond Network 15

Argyle diamonds - Australia
 Eastern–edge of Kimberley Block (northern West Australia) Prices in the polished
 Lamproite mine; discovered 1983 - closed in late 2020 $1 to 3 million/ct
 Maureen Muggeridge (Kulumburu JV) played key role in discovery

 Peak-production 1994 produced ~ 42 m cts (~8.4 tonnes)

 22 kgs per day, 95% industrial goods, ~0.15 cts per stone
 High grade ~7c/t (~700 cpht) during early life of mine, ~ <3.2c/t at end
of mine-life
 Cheap goods – US$9 per carat ROM

 Production included very rare, exceptional

ROM - $9/ct pink, red, purple stones
22 kgs per day  Colours due to plastic deformation-
refraction effects
 Seldom bigger than 2 carats – larger stones
break due to internal stress

 Price driven by scarcity

 Hang-on to your pinks !

Global Diamond Network 16

Letseng mine diamonds - Lesotho
Gem Diamonds Plc
 Exceptional quality Type-IIa rough
diamonds 161 ct 140 ct

 Same population is found ‘downstream’ in

Orange River gravels between
Hopetown and Douglas
 Dollar / carat value typically higher in
alluvial stones

Rough - 13.3ct
Sale price: $8.8 m
$661 664 / ct
Rough - 910 ct
Sale price: $40 m
$44 000 / ct

Global Diamond Network 17

Cullinan mine diamonds – RSA (Rayton)
Cullinan diamond Petra Diamonds Plc
January 1905
3 106 cts
 Source of the worlds largest gemstone diamond
- Priceless -  Produces exceptional Type-IIb blue and Type-Iia DIF
(D-colour, internally flawless) diamonds
Type-IIa 424.89 ct
Sale price ~ $15 m;
~$35 000/ct
209.2ct cut & polished

Type-IIb Blue
20.08 ct
Sale price: $15 m
$747 012 /ct

Global Diamond Network 18

Alluvial diamond mine production West Coast marine production
Holpan-Klipdam alluvial diamond mine (Alexkor, RSA)
 Barkly West, north of Kimberley (RSA)
 Proto-Vaal River alluvial deposit

 Marine ‘land’ and ‘sea’ production off ancient beaches

 Excellent quality commercial whites; makeable goods
 Ave stone size ~ 0.48 ct/stone (includes larger sea goods)
Global Diamond Network 19
History: India – the home of diamonds
 Diamond history goes back ~2 000 years
 Produced many exceptional large diamonds
 Most from Krishna River alluvial deposits

 Great Mogul 280ct (787 ct)

 Nizam 277ct (340ct)
 Orloff 189ct (from Great Mogul)
 Kohinoor 108ct (from Great
Mogul)
 Regent 140ct (410ct)
 Ahmedabad 95ct (157ct)
 Golconda 95ct (130ct)
 Sancy 55cts (106)
Famous Krishna River

Global Diamond Network 20

India – world’s largest manufacturer and trader
~95% of all rough-diamonds cut & polished in India
 or Indian owned factories in SE-Asia

 Surat is main manufacturing centre: ~700 000 employees

 Family business – now modernized

 Productivity, precision, and quality are exceptional

 Cost of manufacturing: ~$10/ct in India, $70/ct in
Belgium, $120/ct in RSA

 SARIN image analysis system (eg. CAT Scan)

 Technology is showing the way in diamond manufacturing
 Optimises number of stones, qualities, and revenue cut
from individual diamonds (particularly large stones)

Global Diamond Network 21

Brazil: 1725 to present-day Alluvial localities
History of big diamonds & coloured stones
 Only one commercial kimberlite mine to-date
 Lipari (Brauna): 2ha; 25cpht; ~$190/ct

Kimberlites & Related-rocks

Brauna (Lipari)
kimberlite mine

Global Diamond Network 22

South Africa (RSA) – once home of the ‘diamond-empire’
1866 to present-day

Global Diamond Network 23

Kimberley – historic town
DeBeers original HO,
Stockdale Street

4-foot rotary pan

‘Baby shaker’ – for

concentrating material
Global Diamond Network 24
Key producers: Russia – worlds largest
By carats and value  Russia’s oldest most successful mine
 2017 water ingress drowned 8 miners
 ALROSA (ALRS-MCX) - Moscow stock exchange
 Partially corporatized State company
 Mines, markets 90% of Russia’s production

 Kimberlites & alluvials in Sahka/Yakutia (Siberia)

 Kimberlites in the Arkangelsk (White Sea) area
 Catoca kimberlite mine in Angola

Mirny Diamond mine,

Yakutia, NE-Russia
Open-pit initially,
currently u/g mine

 Kimberlites discovered in 1954 through traditional indicator sampling

 Laurisa Popugaeva (a lady) & Vladimer Sobolobev (father of Nick
Sobolev) involved in first kimberlite discovery – Zarnitsa pipe
 Comparison on Kalahari and Siberian cratons instrumental in target
selection (VS Sobolev and GG Moor)

Global Diamond Network 25

Russian diamond mines
Yakutia (NE Russia)
 Expensive operating conditions north of Arctic Circle
 Permafrost, minus 20 – 40 degC for much of year
 Plant and equipment must be clad, heated

Udachaya mine
Yakutia

 ‘Melee’ and small diamonds (<0.30

pointers) from the processing plant
 Autogenous milling results in efficient
liberation of small diamonds

Global Diamond Network 26

Russian diamond mines Lomonosov complex
NW Russia
Arkangelsk (White Sea) area (NW-Russia)

 More recent kimberlite province discovery (1975)

 Lomonosov – 2 adjacent kimberlites (cluster of 6 pipes)

 Grib pipe (Anomaly-441): 14.3ha, 70cpht; 55 – 80m cover

• chequered history, discovered (1996) by Canadian Junior, but
lost their rights
• DeBeers attempted an acquisition, ended up with LukOil

 These pipes yield coloured stones and large Type-II stones

Grib mine
Vladimir Grib diamond
222.09 cts (+ two more)
(AGD Diamonds)

Global Diamond Network 27

Botswana – second largest producer
By carats and value Jwaneng mine
Rough - 236 cts
• Worlds richest (Jwaneng) & largest (Orapa) mines Polished - 101.73ct D-IF
Sale price: $26.7 m
($262,459/ct)
• Jwaneng - originally 54 ha at surface (3 pipes) July 2013
• ROM (run of mine) average value ~ $205 / ct
Jwaneng mine, ~3 cts (rough) -
>1.5 carats cut & polished

Global Diamond Network 28

Orapa diamond mine
Worlds largest diamond mine - 110ha

 Discovered in 1967 – opened in 1971

 Diamond mining transformed Botswana

 In the late 1960’s had ~13kms of paved road,
25% adult literacy; >90% today

1.5km Note small

footprint of this
world-class mine

1.0km

Global Diamond Network 29

Canada – third largest producer
By carat and value – but declining rapidly
 NWT kimberlites (Point Lake) discovered in 1991
 Industry in rapid decline – added Covid-19 impacts
 Small (mostly 3 – 5 ha) high-grade pipes
 Expensive operating environment
 Winter temperatures minus 20 – 40 degC

 Debt and Covid-19 pandemic will hasten the decline

After a blizzard – Ekati mine

Global Diamond Network 30

Ekati diamond mines – NWT, Canada
 The millions of lakes and water present
immense challenges in the summer

Global Diamond Network 31

Diavik diamond mines - NWT
 Discovered In 1994, nearing end of life
 In summer melt, more water than land, hence ‘bund-wall’

A-154 N and S

Global Diamond Network 32

Winter ice-road for mine re-supply
 Yellowknife to northern diamond mines
 ~350 kms, ~15 hours

Global Diamond Network 33

Secondary - alluvial or placer deposits Main alluvial producers
Formed by weathering and erosion, mass wasting (glacial action) of  Zimbabwe ~2.1m carats
(Marange)
primary deposits  Namibia ~1.5m carats
(marine goods)
 Subsequent transport – water, wind, and glaciers  Russia ~750 000 carats
 Milling and attritioning action destroys poor quality diamonds  Sierra Leone ~641 000 carats
 SouthAlluvial
Africaproduction (Alexkor,
~120 000 caratsWest Coast, RSA)
 Enhances (upgrades overall) ROM value by orders of magnitude

Global Diamond Network 34

Kimberlite mine production layout – Petra Diamonds
South African alluvial deposits
 Land based – Vaal and Orange Rivers
 West Coast (Atlantic seaboard) - raised & drowned beach deposits

Global Diamond Network 35

RSA – Middle Orange River alluvials
‘Delwers’ or ‘Diggers’

 Similar to the earliest small-scale pick & shovel operations

 Laid the foundations for the South African diamond
industry

Global Diamond Network 36

Secondary diamond deposits Rockwell;
Barkly West
Alluvial or ‘placer’ deposits

 Diamonds eroding from kimberlites and lamproites in the

hinterland, generally Cratonic settings
 Water and wind transport, reworking -> land and marine alluvial
deposits
Trans Hex; Lower
Orange River

Alexander Bay;
West Coast

Global Diamond Network 37

RSA land-based alluvials : Top-end rough production (N Cape, 2006-2009)

107 carats 110 carats, I/J colour 212 carats, Yellow

US$ 1.07 million US$ 555,555 US$2.44 million
(US$10,000/carat) (US$5,000/carat) (US$11,500/carat)

72.58 carats, Fancy Yellow 96.33 carats, Fancy Yellow 7.28 carat Flawless Intense Pink
US$919,880 US$950,000 US $1.054 million (US$145,000/carat)
(US$12,674/carat) (US$9,800/carat)
Global Diamond Network 38
Coastal diamond mining – SW Namibia
Extensive strip-mining on the Atlantic margin for diamonds

 ‘Raised’, and ‘drowned’ marine beaches

 Mopping-up operations remain

Global Diamond Network 39

Marine diamond mining
 Pioneered by by Sammy Collins, a Texan oil entrepreneur
 Crawler based system - Alastair Holberton (Namco)
 Refined by De Beers with their large ‘balance-sheet’
 Large scale deep-water mining taking place almost exclusively
in off-shore southern Namibia environment
 Extensive ~120 metre ‘drowned-beach’ deposits being explored
and exploited

Sea-bed
crawler

Jack-up barges tried for

shallow and mid-water Cookie-cutter,
zones; not that successful & airlift
Global Diamond Network 40
Deep-sea mining - De Beers Marine mining vessels
 In Cape Town harbour for refitting & repairs
 Resupplying done by smaller vessels out of Port Nolloth
(Namaqualand, N Cape)

 In May 2019 De Beers announced it will fund construction of the

world’s first custom-built diamond recovery vessel
 The new vessel is expected to cost +US$468 million (N$7 billion);
the largest single investment in the marine diamond industry

Youtube video – SS Nujoma sampling

Global Diamond Network vessel construction (US$150 million) 41
Conclusions & Challenges
 No new world-class kimberlite or lamproite diamond mine discovery-
since the 1991/92 Canadian NWT diamond discoveries
 Declining natural diamond production - will provide opportunity for
market growth in synthetic gemstone diamonds (LGD’s)
 2020 Covid Pandemic and lockdowns – severely impacted all facets
of the diamond industry
 Diamond prices have recovered strongly in 2021 - the industry will
emerge from the Pandemic more efficient, streamlined, and
increasingly technology driven
 The high level of dependence on one country (India) - for rough
purchases, manufacturing, and jewellery production is a key risk
 ‘Old’ and resilient industry - has survived many challenges in the
past including:
 The Great Depression (1929 – 1939)
 Two World Wars
 USA recession 1981/82
 Global Financial Crash 2008/09
 Covid pandemic of 2020
Global Diamond Network
 New approaches & technology required –
to explore and unlock potentially
prospective sand-covered and difficult
geological terranes for new diamond
discoveries
 Laboratory grown diamonds (LGD’s) – will
increasingly replace natural diamond and
their polished products, particularly in the
smaller sizes
 LGD’s - will encourage new long-term
consumers as Argyle did
 Online polished purchases will increase –
have shown significant increases over past
5 years
 Online rough sales - Covid-19 challenges
will enhance mechanisms for trading and
selling rough goods
 A greater spend on marketing and
promoting the business will be required in
the future
42
Global Diamond Network 43
 Josephine or Blue Moon
diamond
Thank You Origin: Cullinan Diamond Mine, Rayton
(north of Pretoria)
Original rough size: 29.6 carats
Cushion cut: 12.03 carats
Colour: IF fancy vivid blue
Sale price (cut & polished): $48.5 million
$4.03 m per carat
Date: November 2015

Purchased by a Chinese billionaire and

convicted felon for his 7 year old Daughter !
Chatham synthetic coloured gemstones

CONTACT DETAILS

John Bristow
Email address: jwbdia@gmail.com
Mobile: +27 82 571 3004

‘Diamonds are a girls best friend’

https://www.youtube.com/watch?v=knLd8bfeWtI
Global Diamond Network
Lesedi La Rona Diamond ("Our Light"’)
Size: 1 111 carats
Colour: D, with some very minor imperfections
Origin: Karowe or AK6 kimberlite, Botswana
Company: Lucara Diamond Corp (CAN) 44
Recovered: November 2015
Sale price (in the rough): $73 million
Polished diamond prices
Pricing available on the internet 24/7

Rapaport Price-list
Cut & polished diamonds

1-year gold price

to 17 August 2021

Global Diamond Network 45

DRC (Zaire) and Zimbabwe diamonds
 DRC (Zaire) used to be the world’s largest producer
• Mbuji Mayi kimberlites, and alluvials
• Small low value goods - Note ROM values

 Zimbabwe – could have been short-term large producer

• Marange deposit – low quality large goods (~2 cts / stone)
• Alluvial population subjected to radioactive damage in
Proterozoic (~1.1 bn years) Umkondo Belt setting
• Classic ‘rape and plunder’ of a mobile $-commodity
Marange, SE Zimbabwe
ROM ~$35/carat
$US millions

Mbuji Mayi, DRC

ROM ~$18 / carat

Marange (Zimbabwe) production

Global Diamond Network 46
profile 2008 - 2017 – short-lived !
West Kimberley lamproite province – Australia
Photomicrographs illustrating the mineralogical and textural diversity

Ellendale#4 – multiple vents (Age ~22 Ma)

(a) Ellendale-4: Fine grained

olivine lamproite with
phenocrysts (P) and
macrocrysts (MX) of olivine,
in a very fine-grained matrix
consisting principally of
phlogopite.

(b) Rice Hill: Richterite

phlogopite lamproite - orange
phlogopite (M) with red-
orange tetraferriphlogopite
margins, altered leucite and
diopside set in a matrix of
yellow to orange titanian
richterite. (Plane-polarized
light images).

Global Diamond Network 47

Diamond Mining Methods
1. Open-pit – kimberlite and lamproite pipes Letseng open-pit diamond mine (Lesotho)
2. Open-cast – large alluvial operations worlds highest diamond mine, 3,100m
3. Sub-level caving – shaft or decline supported u/g mining
4. Block-caving
5. Fissure mining – ‘overhand’ or ‘underhand’ stoping

Ekati diamond mines, NWT (Canada) : initially open-pit,

followed by underground mining operations

 Competence of the side-wall geology

and structural aspects are key in any
open-pit or u/g mining operation

Global Diamond Network 48

Mining methods - Famous Kimberley mines

Global Diamond Network 49

Global Diamond Network 50