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- For the reason that Argyle mine closed there’s been an enormous diamond provide gap
- Burgundy has simply revealed a 1.51 carat Fancy Yellow stone from its WA mine
- Final week Lucapa discovered the sixth stone from its Lolo diamond mine in Africa
Diamonds have been in brief provide for the reason that closure of Rio Tinto’s (ASX:RIO) Argyle diamond mine in 2020 which operated for 37 straight years, and produced round 95% of the world’s provide of pink diamonds.
The mine produced near 140-150 million carats each year, in comparison with as we speak the place now we have a bit over 100 million carats. I actually am notably in need of the a number of million I deserve and may have.
In the meantime, these are some 15 million carats of tough provide boots to fill, and ASX diamond gamers have been scrambling to assert a slice of the market.
And now, Burgundy Diamond Mines (ASX:BDM) has simply recovered its first diamond from the Ellendale Challenge in WA, mothballed in 2015 and well-known for its good yellow stones.
Try this 1.51 carat octahedral Fancy Yellow stone.
Business diamond manufacturing by This fall
Burgundy additionally owns the Naujaat challenge in Canada together with diamond and valuable metals exploration initiatives in Botswana and Peru, and MD Peter Ravenscroft says this discover is step one in constructing an end-to-end diamond firm.
“The primary diamond recovered at Blina is an instance of the potential high quality of product from the Blina alluvials and the broader Ellendale challenge, and we stay up for constructing in the direction of industrial manufacturing of those beautiful Fancy Yellow diamonds,” he stated.
“That is particularly well timed as we finalise preparations for the upcoming Australian launch of our ultra-luxury Maison Mazerea diamond model later this month, which would be the car to market and promote polished retail stones.”
The corporate is now ramping up throughput charges at its plant on web site, with first industrial diamond manufacturing anticipated in This fall.
Lucapa finds a 160-carat white diamond
However there’s one other participant who’s already up and operating.
The Lucapa Diamond Firm (ASX:LCP) owns stakes within the Mothae and Lulo diamond mines in southern Africa and final yr purchased the Merlin mine within the Northern Territory which was the producer of a few of Australia’s largest valuable stones in its previous life.
And simply final week the corporate recovered a 160-carat white Kind IIa diamond from Lulo, the sixth-largest stone from the deposit to this point.
Diamond recoveries have been sturdy with over 100 Specials (diamonds weighing greater than 10.8 carats) recovered within the final two months – together with an enormous 170 carat pink diamond.
Like gold, pink diamonds have develop into a secure haven funding as a result of the bodily product is extraordinarily uncommon and holds its worth in occasions of financial instability.
Added to its African mines, the Merlin challenge additionally has some sturdy manufacturing potential, with an up to date scoping examine highlighting a manufacturing goal of two.1 million carats.
A feasibility examine is predicted to be accomplished by Q3 2022.
Solely three diamond gamers on the ASX
The third diamond firm on the ASX is Odessa Minerals (ASX:ODE), who’s exploration efforts are largely centered on the Aries Diamond Challenge within the Central Kimberley, which hosts what it says is the biggest recognized diamond-bearing kimberlite in WA.
Notably, bulk sampling at Aries within the early Nineties by Triad Minerals (4.8 carats per 100t) and between 2004 and 2006 by United Kimberley Diamonds (181 diamonds for 25.34ct) has uncovered important diamond occurrences.
A gravity survey is underway with 10,000m drill slim-line RC drilling program deliberate to kick off in Q3.
One other Argyle unlikely however 2023 is glowing
The large provide gap Argyle left wasn’t the one issue that kicked off demand within the sector, with the pandemic inflicting the closure of main chopping and sharpening centres from Israel to Antwerp, New York to India.
Mined diamond provide could possibly be in deficit for so long as a decade as a result of it’s not that straightforward to only add new manufacturing.
For mined provide to recuperate to the 139Mct produced earlier than the pandemic hit in 2019, it could take a serious new and unexpected discovery – and the probability of discovering one other Argyle is fairly slim.
To not point out there’s a restricted variety of new initiatives, with it taking an averaged 10-15 years from the purpose of detection to precise industrial manufacturing.
And additional provide stress is anticipated from the affect of sanctions on Russian diamonds that at present produce 30% of world provide.
Nevertheless it’s definitely wanting like a possibility for ASX diamond gamers.
The annual report on the state of the trade from consultants Bain and Co., in February this yr predicted a seamless rise in remand, particularly within the upcoming quarter.
Bain and Co are anticipating {that a} sturdy vacation season and restricted tough provide will possible “return to historic development tempo by 2023-24.”
BDM, LOM, and ODE share costs as we speak:
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