Africa-focused mining companies Gem Diamonds (LON: GEMD) and Lucara Diamond (TSX: LUC) have both reported the recovery of substantial, high-quality Type IIa diamonds at their respective operations.
On Thursday, Gem Diamonds announced the discovery of a 295-carat rough stone at its Letšeng mine in Lesotho. This find contributes to a growing list of diamonds exceeding 100 carats unearthed at the operation over the past two years. Letšeng stands among the world’s top ten diamond operations by revenue and holds the distinction of being one of the world’s highest elevated diamond mines at 3,100 meters (10,000 feet) above sea level.
Meanwhile, Lucara Diamond, based in Canada, reported the recovery of a 166-carat rough diamond in the Coarse X-Ray Transmission unit at its Karowe diamond mine in Botswana. The precious stone was sourced directly from milling ore from the South lobe of the mine. This discovery marks the 328th diamond over 100 carats found at Karowe since the commencement of operations in 2012. Lucara’s CEO, William Lamb, noted that this recovery reinforces the economic justification for investing in the underground expansion project, extending the mine’s lifespan to at least 2040.
These notable recoveries provide a positive note in a market grappling with persistent weak conditions. Wholesale polished diamond prices experienced a 20% drop last year, impacting rough diamond prices as well. Despite the challenges, the recent findings by Gem Diamonds and Lucara highlight the ongoing significance and potential of their respective diamond mining operations.
