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junior miner Tahera to buy or market all the diamonds from its Jericho mine in Canada.
Tiffany to take on De Beers
Posted Mon, 11 Oct 2004
http://business.iafrica.com/news/125046.htm
Tiffany, the high-end US jeweller, has gone head-to-head with De Beers, announcing last week that it had struck a deal with junior miner Tahera to buy or market all the diamonds from its Jericho mine in Canada.
The move pits Tiffany directly against De Beers, which dominates the global rough diamond market, and other significant players in the value chain such as Israeli Lev Leviev the world's largest polisher, who supplies more than 10 percent of total rough production. Together they maintain a degree of control over the global diamond mining, marketing, manufacturing and retail sales.
Analysts say although Tiffany's strategic move will not make it an immediate counterweight to De Beers, it does illustrate how De Beers'' long-time grip on the marketing of rough diamonds is slipping.
"In Canada, Tiffany is dealing with a first-world country. It only has to link up with two or three more juniors to become a serious challenge to De Beers, which operates in a more difficult environment in Africa," one source said.
But De Beers spokesperson Tom Tweedy welcomed the news yesterday, saying it was not unusual for De Beers'' customers to develop their own brands, or to source diamonds elsewhere. "This is to be encouraged, not discouraged," he said. "If Tiffany is sourcing from a mine, all well and good."
Tweedy said it was not unusual for retailers to have arrangements with mines. Large US retailer Harry Winston buy its diamonds from the Diavek mine in Canada. "De Beers is very comfortable with competition in the market."
He said that it would be wrong to conclude from Tiffany's latest deal that De Beers is in trouble. "The demise of De Beers has been predicted since Cecil Rhodes died in 1902, but the company has blossomed in recent years, with sales steaming ahead."
A Johannesburg-based analyst agreed that the link between Tiffany and Tahera would not threaten De Beers. "De Beers is big enough and established enough not to be threatened. The bottom line is that there is a shortage of rough diamonds, so there is not really an issue for De Beers in finding a market."
De Beers has its own plans to enter the US retail market, and the way forward was cleared in July when the company settled a decade-long legal battle with US antitrust authorities by agreeing to pay a fine. The first of the De Beers stores is to open on New York's plush Fifth Avenue, with a second to follow in Beverley Hills.
Under the deal with Tahera, Tiffany will use a significant part of the production for its own jewellery collections and market the balance on the open market. The Jericho mine is set to go into commercial production by 2006. "Tiffany has taken a wonderful opportunity by financing smaller mining companies that the big players wouldn't touch because they are too small," an industry source said.
If Tiffany's strategy succeeds, it will have access to both rough and polished diamonds.
Business Day
SA world's fourth largest diamond producer
http://www.bday.co.za/bday/content/direct/1,3523,1722301-6078-0,00.html
South Africa maintained its position last year as the world's fourth-largest diamond producer, with an output of about 13 million carats, valued at R7.8 billion, says the SA Diamond Board.
In its 2003/04 annual report, tabled at Parliament on Thursday, the board said the industry employed 28,000 people around the country: 13,000 in mining; 9000 in jewellery retail; 3000 in jewellery manufacturing; 2100 in cutting and polishing; and 900 in sorting and valuing diamonds.
Country's producing more diamonds than South Africa were Botswana, Russia, and Canada.
The board said South Africa was "a solid diamond trading country with a complex value chain".
"However, (it) still exports rough diamonds. The challenge is to add value to our goods by creating a high-value chain.
"Our major challenge is to grow and advance South Africa's cutting, polishing and jewellery manufacturing capacity in such a manner that it positions South Africa as a globally competitive diamond-producing country."
The world's rough diamond market commanded high prices during the year under review.
"There was, on average, a 20% increase in rough diamond prices. Recently, De Beers Diamond Trading Company announced increases of about 8%. A long-term shortage of diamonds is forecast, and prices are
expected to rise," the board said.
Sapa
Trendy Tiffany, tiny Tahera link in diamond deal
Thu Oct 7, 2004 04:22 PM ET
(Recasts after conference call, adds background)
By Nicole Mordant
http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=6444772
VANCOUVER, British Columbia, Oct 7 (Reuters) - Tahera Diamond Corp. (TAH.TO: Quote, Profile, Research) and Tiffany & Co Inc. (TIF.N: Quote, Profile, Research) tentatively agreed to a deal on Thursday that will see the upmarket jeweler buy a "significant portion" of the diamond output of Canada's next gem producer.
As part of the transaction, which got market applause, Tiffany will lend Tahera C$35 million ($28 million) that the small Toronto-based firm will put toward starting to build a mine next year at its Jericho diamond project in Canada's northern Nunavut territory.
Canada already has two diamond mines that have propelled the country from a non-producer six years ago to the world's third biggest -- measured by the value of stones produced -- at a time when world diamond prices are going up.
Tahera's stock rose 2.5 Canadian cents, or 7.2 percent, to 37 Canadian cents on the Toronto Stock Exchange in busy trade on Thursday.
Tiffany with its famous shopfront in New York's well-heeled upper East Side, will take up all of Tahera's production. What it doesn't buy for fashioning into its own jewelry, it will market on behalf of the small Canadian firm on the international diamond market.
Tahera chairman and chief executive Peter Gillan, who said Tiffany was selected from among several interested parties, would not detail the percentage of stones the U.S. firm will purchase for itself over the mine's 8-1/2 year life. Even so, analysts gave the deal the thumbs up.
"The agreement with Tiffany more than meets expectations," Dundee Securities' analyst Meghan Lewis said.
"Tahera will not pay any marketing or selling fees to Tiffany, and will retain full price participation in a rising diamond market," she said in a note to clients.
For Tiffany, the deal gives it direct access to a mine source that will help it secure better quality stones than what it might be able to purchase on the world market.
The transaction marks the second tie-up this year between a Canadian diamond miner and a U.S. retailer after Aber Diamond Corp. (ABZ.TO: Quote, Profile, Research) , part owner of the rich Diavik mine in the Northwest Territories, bought a stake in Harry Winston, a jeweler to the rich and famous.
Tahera is finalizing permits for the Jericho project, which it expects will start commercial production early in 2006.
The mine is much smaller than the Ekati and Diavik operations but sees Tahera beat the world's No. 1 gem producer, De Beers, into production in one of the world's fastest-growing and highest-quality diamond regions.
($1=$1.26 Canadian)
To Damnitscold, your link does not work. Can you repost pls?
Volume 6 million today!
http://tsx.com/HttpController?GetPage=QuotesViewPage&DetailedView=DetailedPrices&Language=en...
Company
Name: Tahera Diamond Corporation
Instrument
Symbol: TAH
Instrument
Name: Tahera Diamond J
NEWS / Company Snapshot / Price History
Charts
Today / 1 mo. / 3 mo./ 6 mo. / 1 yr. / 2 yr. / 3 yr.(w)
5 yr.(w) / 5 yr.(m)
Last Trade: 07 Oct 2004 15:05 EDT
Last Traded 0.375 Net Change +0.030
Last Bid Size 286 Volume 6,228,353
Last Bid Price 0.370 Open 0.370
Last Ask Price 0.375 High 0.380
Last Ask Size 367 Low 0.360
Rimfire and Serengeti Commence Drill Program on the Tide Property
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040921005...
VANCOUVER, British Columbia--(BUSINESS WIRE)--Sept. 21, 2004--Henry Awmack, Chairman of Rimfire Minerals Corporation (TSX VENTURE:RFM) is pleased to report that diamond drilling at the Tide Property, funded by partner Serengeti Resources Inc., has started. This phase two program will consist of approximately 600 metres of drilling to test four different target areas. The Tide is favourably located 40 km north of the deep-water port of Stewart, in northwest British Columbia, and is accessible via the Granduc Mine road.
2004 Surface Exploration Results
The recent phase one exploration program consisted of soil sampling, prospecting and geological mapping. This program helped define a 2000 by 600 metre gold-in-soil anomaly exceeding 90 parts per billion (ppb) cored by a zone of anomalous copper, molybdenum and silver values in the central part of the property. This anomaly may reflect a newly recognized porphyry system, overprinted by later gold-silver-base metal veins. Peripheral to this central area are the gold-arsenic bearing 36 Zone and South Pit Zones as well as a newly identified soil geochemical anomaly on the northern part of the property. This anomaly measures 650 by 400 metres of greater than 90 ppb gold, with a core of elevated arsenic, molybdenum and antimony. Rock sampling in these areas and across the property returned 44 (of a total 104) samples assaying greater than 1 gram per tonne (g/t) gold of which 14 assayed greater than 5 g/t gold. Follow up surface work within these newly identified soil anomalies will be undertaken in conjunction with the drill program.
Drill Targets
Diamond drilling will target the 36 Zone, South Pit Zone, Arrow Structure, and the newly identified porphyry style copper-gold-molybdenum mineralization and associated extensive soil geochemical anomalies. The 36 Zone is a bulk tonnage gold target where gold-bearing sheeted quartz-pyrite-arsenopyrite veins are exposed over a 250 by 150 metre area lying within a larger gold-in-soil anomaly of greater than 1000 ppb. Drilling will target anomalous rock samples collected by a previous operator ranging from 1.9 to 10.3 g/t. The newly recognized gold-copper-molybdenum porphyry target will be tested in conjunction with gold-silver-lead-zinc bearing massive sulphide veins at the High Grade Vein, Arrow Structure and newly recognized Brown Bear Zone. Assays of 8.1 g/t gold and 1958 g/t silver across 0.97 metres have been previously reported from the High Grade Vein. The South Pit Zone is located within an area of anomalous soil geochemistry 600 by 250 metres wide containing greater than 1000 ppb gold. Drilling will target a 15 metre wide alteration zone hosting quartz-arsenopyrite veins assaying 4.6 g/t gold over 2 metres and 4.4 g/t gold over 1 metre.
Serengeti and Rimfire management are pleased with the recognition of a potential porphyry gold-copper-molybdenum system associated with the known high grade gold-silver veins and with the expansion and identification of new soil geochemical anomalies on the property.
Assays from the current program were completed at ALS Chemex in North Vancouver, BC. Disclosure of prior results was made in a technical report filed on SEDAR on February 23, 2004. The technical information in this news release has been prepared in accordance with Canadian regulatory requirements set out in National Instrument 43-101 and reviewed by our qualified person, David Caulfield, P. Geo. President, C.E.O Rimfire Minerals Corporation.
Exploration Update
Rimfire is awaiting results from a number of recently completed drilling and reconnaissance exploration projects, including drilling funded by AngloGold and Northgate Minerals at the ER and RDN projects in Alaska and British Columbia, respectively. Reconnaissance exploration has been completed at the wholly-owned Sutlahine Project, a 170 sq. km claim package northwest of the Thorn Property in northwest British Columbia. Newmont and Rimfire have also completed the initial phase of reconnaissance under terms of the Targeted Exploration Alliance agreement.
Three drilling programs are underway or about to commence. In addition to the Tide drilling program, Rimfire will initiate a drill campaign at the Thorn to test the continuity of Oban Breccia Zone mineralization on strike and at depth, and IP geophysical targets generated in 2004 surveying. The third program is currently underway on the Eagle Property in Alaska, funded by AngloGold.
Results from these programs will be released once all data has been compiled and verified.
On behalf of Rimfire Minerals Corporation
Henry Awmack, Chairman
If you have an E-mail address and would prefer to receive Rimfire's news through this format, please E-mail us at info@rimfire.bc.ca
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Contacts
Rimfire Minerals Corporation
Jason Weber
(604) 669-6660
Fax: (604) 669-0898
Email: info@rimfire.bc.ca
Website: www.rimfireminerals.com
Tahera Diamond Corporation - Exploration update
Tuesday September 21, 9:47 am ET
http://biz.yahoo.com/prnews/040921/to178_1.html
TORONTO, Sept. 21 /PRNewswire-FirstCall/ - Tahera Diamond Corporation announces that it has concluded its summer exploration program. The program included drilling on the Jericho Claims and the Polar Project as well as ground and airborne geophysics, aerial photographs, and till sampling. A regional exploration program was also completed.
The Jericho Claims exploration program was designed to test kimberlite targets in close proximity to the Jericho Diamond Project. Further delineation, sampling, and exploration of the diamondiferous Bird Lake dyke system was conducted, and testing of new exploration targets in the area was also completed. Three of the six drill holes in the Bird Lake dyke area intersected kimberlite extending the inferred strike length of this dyke system to 300 metres (see October 20, 2003 press release for previous Bird Lake dyke results). The average intercept width was 4.48 metres (range from 0.7 metres - 10.77 metres). The steeply-dipping Bird Lake dyke system remains open to the northwest and at depth. In total, 11 drill holes were completed on the Jericho Claims, totaling 466 metres. The remaining Jericho Claims drilling did not intersect kimberlite. Promising kimberlite indicator mineral trains in this area remain unresolved. Caustic fusion analysis will be conducted on the new kimberlite intercepts from the Bird Lake dyke system to further assess its diamond potential.
The Polar Group exploration program was the first program undertaken since Tahera entered into an agreement with De Beers on the property in early 2004. The program was designed to locate and investigate exploration targets for upcoming programs, as well as drill test targets within several priority areas. Nine exploration drill holes were completed on the Polar Group, totaling 339 metres. These drill holes further delineated and sampled the previously discovered Voyageur kimberlite and tested seven exploration targets. Kimberlite was recovered from only one drill hole; an angled hole which intercepted 33.5 metres of the Voyageur kimberlite and was terminated in kimberlite due to technical difficulties. This core will be sampled and analyzed by caustic fusion and geochemical methods to better understand the diamond distribution of the body.
Target scale ground magnetic and gravity surveys, till sampling to confirm indicator trains and geochemical signatures, and regional ground gravity surveys were also undertaken over several high priority areas of the Polar leases. The regional gravity surveys covered over 15,100 acres, and further geophysical surveys are planned here in 2005.
Due to weather and logistical issues, most of the Rockinghorse exploration program was delayed until the winter program, however, air photo collection and a till sampling program were conducted during the summer. The winter program will provide better conditions for drill testing both lake and land-based targets, and further assessment of the Anuri kimberlite.
The summer program also included a regional exploration component that was designed to define new areas for diamond exploration. Approximately 600 samples were collected from 6 different areas. Based upon results and analysis of 2003 sampling data, two new claim groups were staked encompassing more than 100,000 acres. The till samples collected during the 2004 summer program will be processed during the balance of the year, with the results being available for the 2005 exploration programs.
Tahera believes that it has excellent potential to discover additional kimberlites on its highly prospective exploration properties, and the Company's regional exploration efforts will continue to generate new diamond exploration projects.
Mr. Eugene Flood, P. Geol., is Tahera's qualified person for its exploration programs.
About Tahera Diamond Corporation
Tahera Diamond Corporation (www.tahera.com) is a unique Canadian diamond Company focused on developing its wholly-owned Jericho Diamond Project as CANADA'S NEXT and NUNAVUT'S FIRST DIAMOND MINE. Tahera has several other very prospective diamond projects in Canada's prolific Slave Craton. Tahera is well financed with over $12 million cash on hand. The common shares of the Company trade on the TSX under the symbol 'TAH'.
De Beers - Diamond Hunting with GIS
By Joe Francica
(Sep 08, 2004) Post a comment
http://www.directionsmag.com/article.php?article_id=589
Introduction
De Beers, the worlds largest diamond supplier, has an eye on an enterprisewide GIS. De Beers' multifaceted business entails global operations in exploration and mining, including marine mining sales and marketing. The company has assets on six continents and employs 22,000 people. During the 1990’s, management put in place a five-year plan reflecting its need for “improving operational efficiency and effectiveness” starting in the latter part of the decade.
GIS at De Beers
De Beers has employed GIS for over twelve years where it functions primarily in their exploration division. The first installation of GIS was in their exploration group where it now has over 200 users and has expanded to De Beers Marine. Group Exploration now has over 200 users with additional users in other divisions like De Beers Marine and Mining, and Mineral Resources Management. Group Exploration is in the process of standardizing its operational systems, including prospecting, laboratories and document management system. GIS will be directly linked to the Prospecting Information System and will play an important role in the integration.
To manage the process, De Beers has enlisted the help of a local consulting company, GIMS (Pty.) Limited in South Africa, and has signed a Multi National Enterprise (MNE) agreement. As major contractor on the project, GIMS will have responsibility for the ESRI products of an enterprisewide spatial database that will employ Microsoft SQL Server. One of the main goals of the project will ensure that all ventures in De Beers Group Exploration will have the same spatial database structure, in order to facilitate information sharing and access to spatial data.
Technical Clarity
The foundation of the spatial database will use ESRI’s ArcSDE to manage spatial data dissemination. The enterprise application being designed for initial implementation is the Prospecting Information Management System which will be responsible for providing prospecting information trough and generating a Personal Geodatabase for field usage and analysis. This Geodatabase will send and receive data in a secure and automated way. In addition, it will provide some additional functionality such as Spatial Audit Trails and Access Control, according to De Beers.
De Beers intends to standardize spatial applications on ESRI technology. According to Marcelo Braghin of GIMS, “De Beers Group Exploration not only has standards in the technology, using ArcGIS, ArcSDE and ArcIMS we are also developing standards for symbology, metadata and the geodatabase schema. At the moment, we are developing specific applications to integrate the spatial data and prospecting data to the field operations. These applications will be used in all countries in which our Group Exploration is working, currently on five continents.” Mr. Braghin continued by saying that, “De Beers Group Exploration will use SQL Server; De Beers Brazil has already installed ArcSDE/SQLServer and put in production; De Beers Canada Exploration is quite close to finalizing the conversion.”
De Beers Marine also uses GIS where they are deploying ArcPAD, ArcIMS and ArcSDE to manage the production of the vessels on line.
Diamond Hunters
According to Bill McKecnnie, Global Exploration Manager, diamond prospecting takes a long-term commitment. “The company’s projects cover the full exploration 'pipeline' i.e. early stage exploration which includes desktop appraisal of potentially prospective areas and grassroots reconnaissance work to discover new kimberlites as well as advanced exploration projects to establish the economic viability of diamondiferous kimberlites. Acquisitions and joint ventures, where appropriate, complement De Beers' own exploration efforts.
Multifaceted Exploration
As demand rises, mining companies are looking beyond southern Africa and going to Russia, India and other countries to seek diamond deposits.
SOUTH AFRICA
DIAMONDS
DE BEERS CONSOLIDATED MINES LTD SOUTH AFRICA DIAMO
MINING
GLOBAL REPORT
DE BEERS CONSOLIDATED MINES LTD
By Rebecca Bream and Nicol Degli Innocenti, Financial Times
JOHANNESBURG, South Africa — For years, De Beers of South Africa dominated the world diamond market and production was concentrated in southern Africa. But now a number of companies — some big and established, others small upstarts — are seeking to produce the sparklers from other parts of the globe.
De Beers says it now controls less than half of rough diamond production, down from a market share of more than 70% 10 years ago. Although about 40% of diamonds still come from Botswana or South Africa, rising prices have stimulated gem exploration and mining in a wider range of countries from Brazil to India.
Diversified mining groups Rio Tinto and BHP Billiton broke into the market in the late 1990s with big projects in Canada, and state-owned production has been increasing in Russia and Angola.
Demand for diamond jewelry is strong in the United States, the main market, but is growing even faster among newly wealthy consumers in China and India.
But existing mine production has peaked, and producers have sold their stockpiles of gems. It has been 10 years since the last significant diamond discoveries — BHP Billiton and Rio Tinto's mines in Canada — and questions over future supply have pushed up prices.
These conditions have enticed more mining companies into the diamond market. Many are pursuing exploration projects discarded by other prospectors when the market was less attractive.
Diamond mining is relatively simple, but it is hard to find a suitable deposit. Kimberlites, deposits of volcanic rock associated with diamonds, occur all over the world, but only 1% contain diamonds and only 1% of those yield enough to be worth mining.
"There are fewer than 20 kimberlites in the world that matter," said Keith Johnson, chief executive of Rio Tinto's diamond division.
Diamond mines are expensive and time-consuming to develop, making it hard for smaller mining companies to succeed without help from a major firm, he said.
Central and West Africa hold great promise for diamond discoveries, analysts say, but past efforts to look for kimberlites have been interrupted by war and civil unrest.
Mano River has formed a joint venture with BHP Billiton to look for diamonds in Sierra Leone, whose civil war was declared over in 2002, and the group also is exploring in neighboring Liberia.
BHP Billiton, with De Beers, is also in talks with the state-owned diamond company in Congo about acquiring projects in that country.
Tony Williams, executive chairman of European Diamonds, said, "New sources of diamonds are very valuable, that is why people are prepared to take political risk in Sierra Leone" or Congo.
His company is hoping to develop a diamond mine in eastern Finland, in an area that shares the same geology as northwestern Russia, home to two large gem deposits.
"Russia is the wild card in the diamond business," said James Picton, a diamond mining analyst at brokerage firm W.H. Ireland Group, who thinks the country could have more diamond-producing potential than Canada.
Many Russian diamond deposits, such as the Grib kimberlite near Arkhangelsk in northwest Russia, have not been fully developed because of legal or financial problems.
Canada, Russia and West and Central Africa are regarded by analysts as the areas where big new diamond discoveries are most likely to be made, but geologists are also active in India and Brazil, encouraged by the two countries' past production of diamonds.
"Historically, India has been the home of some of the largest diamonds ever found," said Melissa Sturgess, chief executive of Dwyka Diamonds, which is exploring in Andra Pradesh with BHP Billiton.
India was the main source of diamonds in the world until 1725, when gems were discovered in Brazil. The South American country then became the leading diamond producer in the 19th century, but supply dwindled in the 20th century and southern Africa came to prominence.
River Diamonds and Brazilian Diamonds are two companies that hope they can revive the industry by using modern exploration technology to locate new deposits.
Despite all the exploration activity taking place elsewhere, Gary Ralfe, De Beers' chief executive, thinks that Botswana and South Africa will remain the main producers.
"The mines in Canada are rich but small and do not have a long life," he said. "Russia has the mine resources to continue to produce its current share of 20% of world production but not to increase it significantly. Looking ahead, there is nothing to disturb southern Africa's position as the greatest source of production."
Serengeti Resources Inc.: B.C. Copper Gold Prospect Staked
08:30 EDT Wednesday, August 25, 2004
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Aug. 25, 2004) - David Moore, President and CEO of Serengeti Resources Inc. (TSX-V: SIR), reports that the Company has staked the Choo Property, a road-accessible 1500 hectare porphyry copper-gold prospect 70 km north of Fort St. James, B.C. and 25 km west of Placer Dome's Mt. Milligan deposit (408 million tonnes of 0.19% copper and 0.44grams/tonne gold).
A prior operator carried out mapping, sampling, airborne and ground geophysics on the claims - including shallow penetrating induced polarization (IP) - and drilled approximately 1,600 meters in 16 short holes on the property between 1989 and 1992. This work outlined a 1.0 km by 4.5 km coincident IP chargeability and magnetic anomaly in an area of extensive but shallow cover. In the southwest corner of the IP anomaly, local potassium-feldspar alteration with pyrite and minor chalcopyrite (possibly indicative of a mineralized center) was reported, coincident with a copper soil anomaly greater than one square km in extent. Prior grab sampling of a mineralized occurrence in the northwest corner of the IP anomaly returned up to 1.6% copper and 4.9 grams/tonne gold. Partial data only are available from the prior drilling, but are sufficient to indicate the presence of anomalous copper values (e.g. 21 meters @ 0.15% copper and 82 meters @ 0.06% copper) in the system.
Mr. Moore stated: "This new acquisition is a further step in Serengeti's strategy of acquiring high potential exploration targets and brings to five the number of properties controlled by the company in the porphyry copper-gold belt of north-central B.C. This belt is viewed as having excellent scope for additional large, good grade discoveries as demonstrated by the recent successes at Kemess North and Mt. Polley. The data on this newly acquired property show a large, poorly exposed IP and magnetic anomaly in which intriguing copper-gold values are present. Excellent potential for an economic discovery exists within this shallowly-tested porphyry system."
Serengeti intends to acquire and compile the data from previous exploration on the claims prior to designing a follow-up exploration program that could consist of deeper penetrating IP geophysics and eventual drilling. The property is characterized by gentle topography, such that field work will be possible during much of the year.
Serengeti Announces Management Changes and Proposed Financing
09:00 EDT Wednesday, July 14, 2004
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jul 14, 2004) - Serengeti Resources Inc. (TSX-V SIR) is pleased to announce changes to the directors and officers of the Company and a financing for up to $150,000. These changes are designed to revitalize the Company's mineral exploration activities, including the installation of a senior explorationist as the Company's new president.
Management changes
Effective immediately, David W. Moore P. Geo., is appointed President and CEO, and a director. Mr. Moore has spent most of his 30 year career with Teck Cominco Ltd. and its business units Cominco Ltd., Cominco Resources International, and Cominco American Incorporated. Most recently, from 1999 to 2001 he served as General Manager of Global Exploration and from 2001 to 2003 as General Manager of Exploration Business Development. In addition to the preceding, Mr. Moore held a number of directorships of subsidiary companies. Mr. Moore has a proven track record of discovery and experience in both base and precious metals, ranging from grass roots exploration to feasibility and project development. Mr. Moore holds a M.Sc. in Geology from the University of Toronto and a P.Geo. designation in the Province of British Columbia.
Mr. George Tikkanen, P.Eng., is also appointed as a director of the Company. Mr. Tikkanen is a senior exploration and mining executive who held a number of significant positions before retiring from Cominco Ltd. in 1999. Mr. Tikkanen held the position of Vice-President Exploration, Cominco Ltd. from 1992 to 1998 and President of Cominco Resources International Limited, a publicly listed company, from 1987 to 1995. In the course of his career, Mr. Tikkanen was responsible for the management of eight mining operations in five countries and oversaw the discovery and acquisition of numerous mineral deposits including direct participation in the negotiations leading to the development of the Red Dog Mine in Alaska.
Further changes include the appointments of Ms. Sharon Fleming as Corporate Secretary and Mr. Myron Osatenko P. Geo., as a senior geological consultant to the Company. Mr. Ian Brown, formerly President of Serengeti will remain as a director and has agreed to serve as Chief Financial Officer. Mr. Tim Gallagher has agreed to step down as a director. The Board of Directors wishes to thank Mr. Brown and Mr. Gallagher for their service to the Company.
The Company announces the awarding of the following incentive stock options issued in accordance with the Company's option plan: to Mr. Moore, 600,000; to Mr. Tikkanen, 200,000; to Ms. Fleming, 50,000; and to Mr. Osatenko, 50,000. These options are exercisable at a price of $0.10 per share, expire on July 7, 2009 and vest over an 18 month time period. As part of these changes Mr. Brown has agreed to the cancellation of 183,000 options previously awarded to him. With these grants, the Company now has 1,930,000 shares optioned under its stock option plan.
Proposed financing
The Company announces that it intends to raise up to $150,000 by way of a non-brokered private placement through the sale of units priced at $0.10 per unit. Each unit will consist of one common share and a full share purchase warrant which is exercisable to acquire one common share at the price of $0.15 within 12 months of closing and $0.25 within 24 months of closing. The proceeds will be allocated to general corporate purposes, including completing the acquisition of the mineral properties whose acquisition was disclosed on July 8, 2004. The private placement is subject to regulatory approval and the securities issued under this placement will be subject to a four month hold period.
Property review
The Company is also pleased to report the closing of and exchange approval for, an option agreement to acquire a 100% interest in five early-stage copper-gold-silver properties in British Columbia. These properties are more fully described in News Release #2004-05, dated July 7, 2004. Also as reported in News Release #2004-06, dated July 12, 2004, the summer exploration has been initiated on the Tide Gold Project located near Stewart ,British Columbia. This is in preparation for a drill program at Tide planned for September.
Summary
Incoming President David Moore stated, "The appointment of several senior explorationists to the Company's management team is taking place as the Company has expanded its property portfolio from one to six properties, and has a well-funded initial program under way at the Tide Gold Project. Management looks forward to the Company continuing to expand its scope and scale of operations, with the goal of developing an aggressive and successful exploration program. We anticipate the continued enthusiastic support of our shareholders and of the capital markets for our plans. I welcome this new challenge."
De Beers Canada Options properties on Southampton Island to Ditem Explorations Inc.
http://www.cnw.ca/fr/releases/archive/August2004/26/c4486.html
TORONTO, Aug. 26 /CNW/ - De Beers Canada is pleased to announce that it
has optioned its properties on Southampton Island in Nunavut to Ditem
Explorations Inc. The Southampton properties comprise two blocks of permits,
covering 6,500 sq km, valid for three years.
Ditem signed a confidentiality agreement with De Beers in March and
completed a review of the De Beers work programs which included till sampling
and a fixed wing airborne magnetic survey. "Our objective is to move
exploration projects forward as quickly as possible. Partnerships such as this
one with Ditem are necessary for the rapid development of some of our
properties and a key component of our growth strategy in Canada," said Richard
Molyneux, President and CEO of De Beers Canada. The Southampton Island permits
were taken over as a result of a regional exploration program of the Eastern
Arctic initiated by De Beers in 2000. The Eastern Arctic is now the most
active area of diamond exploration in Canada.
In terms of the letter agreement, Ditem will spend not less than
CDN$1 million in carrying out prospecting, exploration and development for all
minerals over a period of three years to acquire a 100% interest in the
properties. At any time, De Beers may buy back part of Ditem's interest for a
pro rata amount equal to three times Ditem's costs for an interest of up to
60%.
Forty-three percent of the De Beers Group global exploration budget of
USD$92 million will be spent in Canada this year. De Beers has found over 200
kimberlites in Canada, often in conjunction with joint venture partners. The
company's current land holdings in Canada are approximately 163,000 sq km, of
which approximately 139,000 sq km are in Nunavut.
De Beers currently has several active joint ventures in Canada and
negotiations are on-going with other exploration companies. Work is advanced
at two of the company's joint venture projects, namely Gahcho Kué, which is a
joint venture with Mountain Province Diamonds and Camphor Ventures, and Fort à
la Corne, a joint venture with Kensington Resources and Cameco Corporation. In
June De Beers signed an option agreement with Tahera Corporation for
exploration and potential development of the De Beers property adjacent to
Tahera's Jericho Diamond Project in Nunavut.
De Beers has two mining projects under development in Canada, Snap Lake
in the Northwest Territories and Victor in Northern Ontario.
De Beers continues its exploration effectiveness drive aimed at improving
sample treatment technologies and reducing results turnaround times. The
company has doubled the capacity of its indicator mineral sorting laboratory
in Toronto and quadrupled the concentration efficiency of its Sudbury sample
preparation facility. Similar improvements are being implemented at the
company's sample treatment and laboratory facilities in other parts of the
world, including its macro-diamond recovery laboratory in Johannesburg, South
Africa. These improvements are aimed at continuously improving the competitive
advantage enjoyed by De Beers and its diamond exploration partners.
De Beers Canada Options properties on Southampton Island to Ditem Explorations Inc.
http://www.cnw.ca/fr/releases/archive/August2004/26/c4486.html
TORONTO, Aug. 26 /CNW/ - De Beers Canada is pleased to announce that it
has optioned its properties on Southampton Island in Nunavut to Ditem
Explorations Inc. The Southampton properties comprise two blocks of permits,
covering 6,500 sq km, valid for three years.
Ditem signed a confidentiality agreement with De Beers in March and
completed a review of the De Beers work programs which included till sampling
and a fixed wing airborne magnetic survey. "Our objective is to move
exploration projects forward as quickly as possible. Partnerships such as this
one with Ditem are necessary for the rapid development of some of our
properties and a key component of our growth strategy in Canada," said Richard
Molyneux, President and CEO of De Beers Canada. The Southampton Island permits
were taken over as a result of a regional exploration program of the Eastern
Arctic initiated by De Beers in 2000. The Eastern Arctic is now the most
active area of diamond exploration in Canada.
In terms of the letter agreement, Ditem will spend not less than
CDN$1 million in carrying out prospecting, exploration and development for all
minerals over a period of three years to acquire a 100% interest in the
properties. At any time, De Beers may buy back part of Ditem's interest for a
pro rata amount equal to three times Ditem's costs for an interest of up to
60%.
Forty-three percent of the De Beers Group global exploration budget of
USD$92 million will be spent in Canada this year. De Beers has found over 200
kimberlites in Canada, often in conjunction with joint venture partners. The
company's current land holdings in Canada are approximately 163,000 sq km, of
which approximately 139,000 sq km are in Nunavut.
De Beers currently has several active joint ventures in Canada and
negotiations are on-going with other exploration companies. Work is advanced
at two of the company's joint venture projects, namely Gahcho Kué, which is a
joint venture with Mountain Province Diamonds and Camphor Ventures, and Fort à
la Corne, a joint venture with Kensington Resources and Cameco Corporation. In
June De Beers signed an option agreement with Tahera Corporation for
exploration and potential development of the De Beers property adjacent to
Tahera's Jericho Diamond Project in Nunavut.
De Beers has two mining projects under development in Canada, Snap Lake
in the Northwest Territories and Victor in Northern Ontario.
De Beers continues its exploration effectiveness drive aimed at improving
sample treatment technologies and reducing results turnaround times. The
company has doubled the capacity of its indicator mineral sorting laboratory
in Toronto and quadrupled the concentration efficiency of its Sudbury sample
preparation facility. Similar improvements are being implemented at the
company's sample treatment and laboratory facilities in other parts of the
world, including its macro-diamond recovery laboratory in Johannesburg, South
Africa. These improvements are aimed at continuously improving the competitive
advantage enjoyed by De Beers and its diamond exploration partners.
Diamond miners strike at De Beers
By Edmund Conway (Filed: 25/08/2004)
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2004/08/25/cnbeer25.xml&sSheet=/money/200...
De Beers was scrambling to keep its biggest and most lucrative diamond mines running yesterday following an illegal strike by Botswanan workers.
The diamond giant's Botswanan wing, Debswana, which produces almost 70pc of its stones, said union leaders had been ordered to appear in court after at least a third of its miners failed to appear for work.
Debswana insisted that the strike would not impair production, although union leaders claimed all four mines had been shut down.
The strikes are an unwelcome intrusion for De Beers, which is currently renegotiating its mining contract with the Botswanan government, co-owner of Debswana.
The deadline for the talks has had to be extended until the end of the year, after the company and the government failed to agree on terms this summer.
De Beers also faces competition from a number of new mines in Canada and Russia, which are touted as the growth areas for the industry in future decades.
Botswanan mining unions were told earlier this month that a strike would be illegal, but yesterday insisted that they had lost control of workers, who are unhappy with current pay conditions. The union is demanding a pay increase of 24pc and a 16pc rise in living expenses, but the management at Debswana is offering just 10pc more of each.
The International Federation of Chemical, Energy Mine and General Workers last week criticised De Beers for what it called an "inferior" and "miniscule" pay offer.
"Members of the [unions] at Debswana's mines are largely responsible for the heightened production and continual profitability of this enterprise, yet are treated like neglected stepchildren," said general secretary Fred Higgs.
A De Beers spokesman said the company had done its best to avoid a strike.
"The current situation is that a number of people remain on strike, which is contravention of a court order," he said. "We are open for negotiations when that group of people decides to speak to us.
"Clearly this is going to have an impact on production, but not, at the moment a serious impact."
Treasures from the ground
Tuesday, August 24, 2004
http://morganhilltimes.com/life/lifeview.asp?c=120668
Polishing rubies and sapphires in Chantaburi, Thailand. The country produces fewer mined gems these days, but remains a manufacturing and trading center.
Gems are among the most gorgeous examples of nature at work, even though the jewels we admire get a helping hand not afforded to phenomena like sunsets and snow-capped peaks. When we imagine gemstones, few of us picture hunks of rough minerals formed deep in the Earth’s core. Instead, it’s polished, faceted little dazzlers set in jewelry that we have in our mind’s eye - even though they may also have been heat-treated, dyed, irradiated, laser-drilled, oiled and fracture-filled to produce greater color saturation, clarity and weight. And if we don’t get excited by such images, people expecting gifts from us this holiday season certainly might.
Apart from geologists, few people would consider gemstones in their natural state to be particularly beautiful - though ideas of what is “natural” and “unnatural” are not entirely clear-cut. After all, even a gem merely extracted from its host rock could be considered “unnatural.”
Generally, though, humans have been untroubled by this hair-splitting for a long, long time. Our ancient ancestors mostly just liked the bright shiny things they came across in their daily lives. Millennia ago, people living inland collected the attractive pebbles they found along riverbanks, and coast-dwellers gathered up shells and coral.
Ater a while, people figured out they could stick gems in wet clay and bake them in the sun to create an even lovelier token. Or drill holes in mussel shells and string them together to make a necklace. After thousands of years of this sort of thing, people began mining, cleaving, polishing and shaping gemstones, harvesting and stringing pearls, and setting them in jewelry with improving metallurgical technology.
Which brings us to modern times - those three-month’s-salary engagement rings and all the rest. Let’s look at some of the gemstones we all know and love.
Diamonds
Diamonds are by far the most popular gems on the planet and, for a number of reasons, they have come to dominate the gemstone trade.
Diamonds are famously the hardest substance known to man - even being said to tip Cupid’s arrows - but they are also easily split along the cleavage points of their crystal formation, making them fairly easy for manufacturers to work with. The ancients valued diamonds - then mostly found in streams - for their hardness, though they did not have the technology to bring out a stone’s maximum beauty by polishing and faceting.
While fairly rare, and now almost exclusively extracted by deep-bore or open-cast mining - diamonds can be wrested from the earth at a high rate of return in countries where labor is cheap and environmental controls are lax. They have a high refractive index, meaning cut diamonds show a great deal of “brilliance,” “scintillation” and “fire” - in other words, they’re sparkly.
There are other gemstones rarer by far. Still others possess higher refractive properties. But a combination of several superior qualities caused diamonds to be prized long before market leaders De Beers ever stepped into the picture. Born out of the Kimberley, South Africa diamond rush of the 1860s and ’70s, De Beers formed through an unlikely alliance of two Englishmen - upper-class colonialist Cecil Rhodes and Barney Barnato, a boxer-cum-actor from London’s East End. The company - named after a Cape Colony farm they bought from a family called De Beers, and where they sank two diamond mines - quickly put strong emphasis on public relations, and by the early 20th century had been able to position the diamond as the “king of gemstones.”
The classification and study of diamonds over the past 100 years has far outpaced that of any other gemstone, only adding to the strength of the diamond’s market position. Meanwhile, colored diamonds - ranging from yellows, greens, blues and reds to browns, blacks and pinks - have found a new popularity in recent years, and fetch prices even higher than their “white” cousins on the market.
Not that it matters much to the trade which diamond you buy, because from the retail price the shop will keep around 40 percent, while the maunufacturer/wholesaler and De Beers (or some other mining company) will each pocket around 30 percent.
What’s for sure is that relatively little profit will trickle down to miners in those countries where the gems are mined, notably Botswana (now the world’s largest producer), Namibia, South Africa, the Democratic Republic of Congo, Sierra Leone and Angola. Diamonds are also mined in Australia, Russia and Canada, and continue to be found in small quantities in India, Brazil, Indonesia, Burma and elsewhere.
To this day, De Beers, which was taken over in the 1920s by Ernest Oppenheimer, a former clerk in its London office, distributes the majority of the world’s rough diamonds to a select band of around 120 manufacturers. Though De Beers’ pre-eminence is no longer at its 1920s peak, when it controlled about 90 percent of the world’s rough diamonds, at around 65 percent - or $5.41 billion in 2003 - it is still sufficient to have it barred by anti-trust laws from operating in the U.S. (De Beers plead guilty to price-fixing before a U.S. court last month in a move that will apparently lead to the end of over 60 years of anti-trust rulings against the cartel.)
Emeralds
Along with diamonds, rubies and sapphires, emeralds are among the “precious” stones which attract the highest prices of all gemstones at auction, as well as on the wholesale and retail markets. Relatively soft and almost always marred by non-emerald mineral inclusions, emeralds are nonetheless highly prized - largely due to their color, which many regard as the epitome of green. Emeralds are member of a larger mineral family, beryl - but only green, gem-quality beryl is designated emerald.
Of late, however, emeralds have lost some of their luster, as the common practice of filling their usual fissures and cracks with nonemerald material to produce a smooth, clean-looking stone has come under fire from the public. While they remain one of the four “classics,” their prices have generally dropped over the past 10 years, from a peak of $11,000 per carat for high-quality goods to a low of $6,000 in 2000.
The best emeralds, it is agreed, come from Colombia, while deposits of lesser-quality green beryl occur in Brazil, Afghanistan, Pakistan, Madagascar, Zambia, Zimbabwe, Tanzania and elsewhere.
Rubies and sapphires
Corundum is the mineral classification of both rubies and sapphires, second in hardness only to diamond. But while a sapphire is corundum of any color other than red, rubies throughout history have been only associated with gems of the deepest crimson and fetch higher prices than even blue sapphires. Indeed, the ancients often described any transparent red gem as a “ruby,” including garnets, spinels and tourmalines.
Meanwhile, a constant debate is waged over the cut-off point between pink sapphire and ruby - with the most vitriolic arguments generally coming from those who possess stones perilously close to the divide.
Before diamonds came onto the scene, rubies and sapphires held positions of the highest esteem. Legends surrounding these gems are plentiful, such as the mythological valley of rubies that were guarded by gigantic birds of prey called rocs, appearing in the Arabian Nights and elsewhere. Treasure-seekers were supposed to have tossed pieces of meat into the inaccessible valley, where the rubies that literally covered the ground would stick to the meat. The rocs would eat the meat and pass out the rubies in their cliff dwellings. The treasure-seekers could then climb down and claim their prizes. And often get eaten by rocs for their troubles.
Many modern gemstone researchers believe the legendary valley is none other than Burma’s Mogok Valley, where rubies may have been mined since as early as AD 500, and probably long before. It is possible that the tales of predatory birds were created to keep invaders away from the mines, which today continue to yield the finest, “pigeon’s blood” rubies. Burma is the source of the finest rubies in the world, with Mogok the top location and Mong Hsu a sourceof lesser-quality gems. Cambodia, Vietnam, Madagascar, Kenya, Tanzania and Sri Lanka are also ruby-producing countries, while Thailand now has few of the deposits that once made it a top exporter.
The benchmark for blue sapphires - the most prized color in sapphires - are the highly prized Kashmir gems, but today Sri Lanka, Burma, Madagascar, Cambodia, Thailand and Australia are the chief sources. “Fancy color” sapphires - including pinks, greens, purples, yellows, as well as clear and nearly black corundum - are found throughout the world, most heavily concentrated in the main ruby- and blue sapphire-rich nations.
Semi-precious gems
For want of another term, “semi-precious” is the adjective attached to any gem that isn’t a diamond, emerald, ruby or sapphire. It’s a designation that isn’t well-liked by producers, dealers and retailers, who generally prefer “colored stones” to describe all gems except white diamonds. And who can blame them, when an incredibly rare and beautiful color-change stone like alexandrite is lumped together with common quartz? Or consider the gems with deep cultural significance, such as jade in China, or those with colors scarcely found anywhere else in the natural world, such as the vivid neon-blue of Paraiba tourmaline, discovered in Brazil in 1989.
Of course, such semi-precious gems often sell for prices that rival the precious quartet, while spinels, garnets, peridots, amethysts, aquamarines, bloodstones, opals and others get their day in the sun thanks to birthstone sales. Other semi-precious gems wax and wane in popularity; witness the tanzanite, tsavorite and spessartite fads of a few years ago, or the current craze in China for Canadian ammolite.
With regards to almost all transparent semi-precious gems, most connoisseurs prefer them to be “eye clean,” with no visible mineral inclusions. However, a small number of gems are actually valued for their inclusions, such as rutilated quartz, or for spectral phenomena, as with precious opal’s “play of color” and cat’s-eye chyrosoberyl’s dancing band of light. Semi-precious gems come from all over the world, with the heaviest concentrations in South and Southeast Asia, sub-Saharan Africa and Amazonia.
Organic gems
All sorts of organic material is used in jewelry, from bones to leather to wood. But “organic” gems are generally taken to mean just three: pearls, amber and coral. Pearls are the natural result of mollusks coating irritating grit with a secreted substance but are now predominantly “cultured”, a process which involves inserting grit - usually small pieces of mollusk shell, actually - into harvested freshwater and oceanic mollusks. Amber received a new notoriety with the film “Jurassic Park,” and coral - popular with Italian jewelry designers and cameo artists - is increasingly rare due to over-harvesting and pollution.
We all know what coral is, but gem-quality coral is a pinkish, smooth variety found in the Mediterranean Sea and generally shaped into cabochons (oval-shaped pieces that are flat on one side) or beads. Amber is fossilized pine-tree sap, which sometimes contains the remains of insects and other creatures trapped in the sticky resin before it hardened, and is found primarily in the Baltic countries and the Dominican Republic.
Lookalikes
Again we must dust off our definitions of “natural” and “unnatural.” A synthetic diamond, strictly speaking, is a diamond - crystallized carbon - but few diamond lovers would agree. Up until recently, it was more expensive to create a synthetic diamond than to mine the real thing. Today, synthetic diamonds are almost exclusively used for industrial and high-tech purposes. For the most part, the “fakes” people buy are more properly termed simulants, or even “stand-ins.” Cubic zirconia, for example, is a synthetic gem, grown in a lab, and is a common diamond simulant used to keep the price of a jewelry piece low. What it isn’t, however, is a synthetic diamond. Glass is the most common gem simulant of all!
The term “simulant” probably reflects marketing agendas more than scientific classification - any time you see a gem, synthetic or not, extolled for its “diamond-like properties,” you’re hearing about a simulant. Meanwhile, everyone in the gem business being extremely touchy about their own products, many sellers of synthetics prefer the terms “created gems” or “man-made” gems.
Gem treatments fly even further below most consumers’ radar. Nearly all gems can be treated to improve their looks, from the gentle heating that brings out tanzanite’s purplish-blue color, to the irradiation of topaz in linear accelerators to achieve a royal blue coloration. Untreated gems generally attract much higher prices than treated stones - and these days they’re much rarer. Consumers should always ask about treatments from their jeweler.
The bigger picture
In recent years, consumers have generally become increasingly aware of the political and humanitarian repercussions of their purchases - and so, too, gemstones have been scrutinized. Because both gemstone mining and manufacturing are concentrated in poor countries, several aspects of the gem trade have come under fire.
Diamonds have received the most heat of late. The United Nations and several NGOs decry the trade in diamonds from war-torn African nations such as Sierra Leone and Angola, where factions fight for control of diamond mines whose proceeds go toward purchasing more weapons to terrorize civilians.
It has also recently come to light that Osama bin Laden’s al-Qaeda financial network may have included Sierra Leonean diamonds purchased through Liberia’s exiled president Charles Taylor.
Meanwhile, the use of child labor in gem manufacturing in India and elsewhere has drawn the attention of human rights activists for years. Political conditions in Burma and Colombia, the primary sources of rubies and emeralds respectively, have served to taint those gemstones, too.
For lovers of gems, these issues can be confusing. On the one hand, gem mining and manufacturing are vital industries in some of the world’s poorest economies. A consumer boycott or economic sanctions would have devastating consequences for the people who depend on gems for their livelihood.
On the other hand, there is a deep unfairness surrounding the plunder of such natural wonders from the developing world, brought to the West’s luxury markets for the equivalent of slave’s wages in many places. What wealth does flow back to the place of origin is generally scooped up by violent despots and greedy merchants instead of trickling down to the miners and gem-cutters themselves.
In the end, for many of us, gems may simply be things to be marveled at, and that’s as deep into the alternately beautiful and sordid business as we’d like to go.
Engagement rings aside, of course…
Miner to strike it rich in gem sale
FRED BRIDGLAND
http://thescotsman.scotsman.com/international.cfm?id=936572004
AN IMPOVERISHED African miner is set to become a millionaire after unearthing one of the largest diamonds ever found.
The Scotsman can reveal that the 182-carat stone recently dug up by a freelance miner, Mohamed Kalo, in the Aredor Mine in the West African state of Guinea has already been sold to a mystery buyer for more than £5 million, according to sources in Conakry, the Guinea capital.
And Mr Kalo may be about to get very lucky. Guinea’s mines minister, Alpha Mady Soumah, said that, under the country’s minerals and mining laws, the miner is entitled to half the value of the diamond’s initial sale.
The government will receive 7.5 per cent of the sale price under its deal with the Canadian mining company Trivalence.
But the mystery buyer of the as-yet unnamed Aredor diamond may never be known.
"This discovery is thanks to God, who gave me this chance," said Mr Kalo, 20.
The stone, about the size of a fist, was found four weeks ago by the miner, armed only with a shovel. He immediately handed it in to Trivalence.
The corporation mines a 500-square-mile area in one of the most remote parts of Guinea, using a combination of bulldozer draglines with huge buckets plus hundreds of freelance diggers to comb the alluvial deposits. The discovery has caused great excitement at Trivalence’s Vancouver headquarters because the history of diamond mining suggests that when one giant stone has been found, the area inevitably has others.
"Remember that this diamond is at least 60 to 90 million years old," said Judith Kinnaird, professor of economic geology at the University of the Witwatersrand in Johannesburg.
"It was formed in intense heat 100 to 130 miles below the surface of the earth and worked its way slowly to the surface through a kimberlite volcanic pipe.
"The stone is like a work of art. A diamond in its rough state is absolutely unique."
In truth, the diamond is actually little more than a small piece of super-heated carbon.
Yet the Aredor diamond has been under intense guard since Mr Kalo uncovered it in the headwaters of the Niger River. It was flown to Conakry and locked in the vaults of Guinea’s Central Bank. No photographs of the diamond have yet been released.
Freelance discoveries of big diamonds in central and west Africa always trigger frenzied speculation. In this case, Mr Kalo, probably earning no more than the average Guinean’s £325 a year income, had little choice than to hand the stone to Trivalence. It was too big to be slipped into a pocket, or even swallowed, to be smuggled from the mining site. In any case, discovery would have meant a long jail term and even death in one of Guinea’s fetid prisons.
Prof Kinnaird, formerly a lecturer at St Andrews University, said the mystery buyer of the Aredor diamond could do one of two things with the stone.
He or she could keep it in its "mint condition" as an art work and object of value, much as the 616 Diamond, a 616-carat stone discovered at Kimberley, South Africa, in 1876, has been preserved uncut for 128 years.
Derek Schaeser, the curator of the De Beers Museum at Kimberley, where that diamond lies in a vault, said it was so valuable that he was not permitted to put a price on it.
Alternatively, the buyer of the Aredor could send the stone to one of the world’s leading expert cutters crammed into the small network of streets around the Pelikaanstraat in Antwerp, which represent the centre of the world trade in diamonds, to be skilfully cut into several perfectly shaped gems.
"What enhances a stone best of all is the cutting of it," said Prof Kinnaird. "Otherwise the light doesn’t bounce out of the stone, with those flashes of brilliance that really make a diamond."
The biggest rough diamond of all time, the bowling-ball-sized Cullinan, was 3,106 carats and cut into two of the world’s largest gem diamonds, seven other major jewels and about 100 other stones.
Arguably the world’s most famous diamond, the Cullinan was found in an underground mine wall in 1905 in the Premier Mine at Cullinan, 25 miles north-east of Pretoria.
It was sold for £6,250 to the Transvaal government, which then insured it for £800,000 and presented it as a gift to King Edward VII. The stone was studied for several months before the cutter cleaved from it the Star of Africa, a 530-carat jewel that was embedded in the sovereign’s royal sceptre as part of the Crown Jewels.
The second largest stone, the 317-carat Cullinan Two, is embedded in the Imperial State Crown.
Mr Schaeser said the Aredor diamond ranks among the 70 or 80 biggest ever found.
Prof Kinnaird reckoned it probably ranked higher than that.
A spokesman at the Johannesburg headquarters of De Beers, the world’s biggest diamond mining company, said that diamonds are valuable because of their rarity. All the diamonds ever found would not fill a double-decker bus, he said.
If the Aredor diamond is to be cut into several jewels, their ultimate value will depend on a number of factors, said Prof Kinnaird.
First, she said, it will be graded by colour, ranging from blueish whites at the top end to wine-coloured at the bottom.
"Then it must have good clarity. Diamonds get several categories from internally flawless, down to slightly flawed and so on. But skilled cutting adds value most of all."
Prof Kinnaird said that what will excite the Guinea government and Trivalence most of all is the knowledge that other big stones must come from where the Aredor diamond had its birth.
That means the search will be intensified for narrow kimberlite pipes plunging deep down into the earth.
The Trivalence executives in Vancouver will now be feeling they negotiated an excellent deal in 1996 with the Guinean government.
An Australian firm had just pulled out of a 50/50 Aredor deal that had proved uneconomic.
Conakry lured Trivalence into Aredor with a guarantee of 85 per cent of the profits.
With Mohamed Kalo’s find, the gamble has paid off handsomely. And the find will doubtless attract many more poor residents of Guinea to quit their low-paid jobs and head for the mines - in the hope of following in the footsteps of Mr Kalo.
DIAMONDS ARE FOREVER
• Diamond is simply carbon - just like charcoal or graphite. The difference is caused by the bonding between adjacent atoms to form a diamond’s unique crystalline structure.
• Diamonds have been known for at least 3,000 years and were first mentioned in the Bible.
• It is thought the earliest diamonds were found in about the 12th century BC in India, which remained the most important source until 1725, when diamonds were discovered in Brazil.
• The Indian and Brazilian deposits had been almost exhausted when, in 1866, the Eureka diamond was discovered in South Africa.
• The world’s most famous diamond, the Cullinan, was found in 1905 near Pretoria. It was sold for £6,250 to the Transvaal government.
• Through promotion from the De Beers Company and the Diamond Promotion Service, diamonds have become the most desired gemstone.
• Diamonds Are Forever (1971) was Sean Connery’s last Bond film as a young 007. Bond investigates a diamond smuggling operation in Amsterdam but stumbles across a more sinister plot hatched by Blofeld to use a laser in space to cause world mayhem.
ROB TOMLINSON
Diamond Prices Rise
http://news.tbo.com/news/MGBK5M36SXD.html
De Beers, the world's biggest diamond company, will raise the price of rough diamonds by an average of 5 percent this month as jewelry demand remains ``strong'' for the rest of the year. The increase, De Beers' third this year, follows a 7 percent increase in retail diamond sales in the year's first six months, the Johannesburg, South Africa-based company said. It raised prices by 3 percent in January and 5 percent in March.
De Beers said last month that first-half net income jumped 26 percent to $341 million because of higher diamond prices.
A staff and wire report>
Volume 3,448,400. Any news?
De Beers Canada Sponsoring Pow Wow
(August 10, '04, 6:17 Edahn Golan)
http://www.idexonline.com/start.asp
De Beers Canada will sponsor the 2004 Canadian National Exhibition (CNE) Pow Wow, to be held later this month in Toronto.
The Pow Wow, a traditional Native Americans council or meeting, is the first Pow Wow to be held at the CNE and will attract Aboriginal artists from across Canada to perform traditional and contemporary music, dance and storytelling as well as to showcase unique Aboriginal food, arts and crafts.
“As a diamond mining and exploration company with many projects in the far north, De Beers Canada makes it priority to build long-term relationships with the Aboriginal communities in which we operate," said Richard Molyneux, President and CEO of De Beers Canada.
"It is a privilege for De Beers to promote cultural diversity and to contribute to this celebration of Native Canadian Culture."
De Beers is currently developing two diamond mines and working on some 30-exploration projects across the country.
The CNE Pow Wow will take place in Bandshell Park and over three days from Friday August 20 to Sunday August 22.
More
http://biz.yahoo.com/prnews/040525/latu078_1.html
http://www.theglobeandmail.com/servlet/ArticleNews/TPStory/LAC/20040506/RDIAM06/TPBusiness/Canadian
http://www.investors.com/breakingnews.asp?journalid=21544263&brk=1
http://north.cbc.ca/regional/servlet/View?filename=nwt-diamondwoes06092004
http://www.busrep.co.za/index.php?fSectionId=&fArticleId=2163036
http://biz.yahoo.com/prnews/040729/sfth050_1.html
Here some links
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040616005...
http://www.tacyltd.com/Research_Materials_Full.asp?id=53813
http://www.primezone.com/newsroom/news_releases.mhtml?d=59882
http://www.idexonline.com/start.asp
http://www.tacyltd.com/Research_Materials_Full.asp?id=53852
http://www.petroleumnews.com/pnads/505902990.shtml
http://www.investors.com/breakingnews.asp?journalid=22069536&brk=1
http://www.idexonline.com/start.asp
http://www.cnw.ca/fr/releases/archive/July2004/14/c2922.html
http://www.economist.com/business/displayStory.cfm?story_id=2921462
http://quote.bloomberg.com/apps/news?pid=10000085&sid=aK_65ZCnYcro&refer=europe
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040716005...
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040719005...
http://business.scotsman.com/agriculture.cfm?id=827762004
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2004/07/24/cnbeer24.xml&menuId=242&sS...
http://www.busrep.co.za/index.php?fSectionId=&fArticleId=2163036
http://icwales.icnetwork.co.uk/0100news/0200wales/tm_objectid=14467957&method=full&siteid=50...
http://www.tacyltd.com/Research_Materials_Full.asp?id=53937
http://www.theage.com.au/articles/2004/07/28/1090694026555.html?oneclick=true
http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20040728005...
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Tahera Diamond Corporation: Second quarter report
Tuesday July 27, 4:37 pm ET
TORONTO, July 27 /PRNewswire-FirstCall/ -
Highlights of the second quarter:
- Receipt of federal approval of the Jericho Diamond Project
- Signed exploration and development agreement with De Beers on highly
prospective property (Polar Project) adjacent to the Jericho Claims
- Completed name change to Tahera Diamond Corporation to accurately
reflect the Company's business
- Appointment of Daniel Johnson as Executive Vice President, Operations
- Appointment of Andrew Adams to the Board of Directors and Chairman of
the Audit Committee
Development
Tahera Diamond Corporation is focused on developing its wholly-owned Jericho Diamond Project as Nunavut's first diamond mine. Federal approval of the project was received in June 2004, marking the successful completion of the environmental assessment process. The Company is now working toward finalizing the required authorizations for the project, including the water license and land leases. Tahera anticipates completing these requirements during 2004, allowing sufficient time to meet the Company's goal of commencing project construction in early 2005.
Tahera has received strong interest from several parties with regard to a diamond marketing arrangement for the Jericho Diamond Project, and the Company is continuing to advance both the marketing and project financing initiatives during the third quarter.
Exploration
Tahera will continue to be an aggressive diamond explorer during the Jericho mine development phase. The exploration programs will focus on delineating additional diamond reserves in close proximity to the proposed Jericho diamond mine, and on advancing the Company's other prospective diamond exploration properties.
During the spring 2004 exploration program, a series of ground geophysical surveys to define potential kimberlite targets and refine existing kimberlite targets at both the Jericho Claims and the Hood River Property were conducted. Nineteen ground magnetic survey grids were completed during the program. A number of targets that were identified on the Jericho Claims will be drilled during the current summer program. Targets developed at the Hood River Property will be prepared for drilling during the upcoming winter program.
Tahera mobilized the summer 2004 exploration program in mid-July. The $2.5 million program will run to September 2004, and includes drill testing priority kimberlite targets on the Jericho Claims, the Polar Project, and the Rockinghorse Property (Anuri Project). A regional program designed to identify new areas of interest for detailed diamond exploration work will also be conducted.
Numerous targets on the Jericho Claims have been prioritized based on geological, geophysical, topographic, and geochemical data. The Jericho Claims exploration program will focus in the Bird Lake area located approximately nine kilometres south of the Jericho kimberlite. Further delineation of the significantly diamondiferous Bird Lake dyke structure will be completed, and new exploration targets in the area will be tested. Approximately ten exploration targets are scheduled for drill testing during the summer program.
Tahera entered into an agreement with De Beers in June 2004 for exploration and potential development of a highly prospective property situated adjacent to Tahera's Jericho Claims. An airborne geophysical program, ground magnetic and gravity surveys, and sampling will be completed over selected areas to further define kimberlite targets. Approximately ten targets will be drill tested during the summer. Evaluation of the diamondiferous Muskox pipe, located approximately 14 kilometres west of the Jericho site, will also be conducted in preparation for further sampling of the kimberlite during the upcoming winter program.
Numerous targets have been prioritized on the Rockinghorse Property (Anuri kimberlite) based on geological, geophysical, topographic and geochemical factors. An airborne geophysical survey, and ground magnetic and gravity surveys will be utilized to refine and further prioritize these exploration targets. A number of the targets will be drill tested during the current summer program, and additional technical analysis of the Anuri kimberlite data will be completed.
Tahera has acquired additional landholdings within the Slave Craton as a result of a regional exploration campaign conducted in 2003/04, and the Company has identified several areas of interest outside of its current landholdings where further exploration work is planned.
2004 Second Quarter Results
At June 30, 2004, Tahera's cash balance was $13,418,000. The Company recorded a loss of $738,000 ($0.002 per share) for the quarter ended June 30, 2004, which compares with a loss of $645,000 for the quarter ended June 30, 2003 ($0.001 per share). Operating expenses increased moderately to $771,000 for the quarter ended June 30, 2004 compared to $631,000 for the quarter ended June 30, 2003.
Financial Statement Highlights (in thousands of Canadian dollars, except
per share data):
As at As at
Jun. 30, 2004 Dec. 31, 2003
Current Assets $ 13,642 $ 13,741
Capital and Other Assets 47,535 45,653
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$ 61,177 $ 59,394
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Current Liabilities $ 582 $ 3,363
Share Capital 61,012 98,786
Contributed Surplus 902 585
Deficit (1,319) (43,340)
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$ 61,177 $ 59,394
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Six Months Ended Six Months Ended
Jun. 30, 2004 Jun. 30, 2003
Operating Expenses $ (1,403) $ (1,152)
Other Items 156 48
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Loss for the Period before
Income Taxes (1,247) (1,104)
Income Taxes (72) (70)
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Net Loss for the Period $ (1,319) $ (1,174)
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Loss per Share -
Basic and Diluted $ (0.003) $ (0.003)
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Six Months Ended Six Months Ended
Jun. 30, 2004 Jun. 30, 2003
Cash Flows From (Used In):
Operating Activities $ (1,171) $ (887)
Investing Activities (1,749) (1,181)
Financing Activities 2,743 457
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Net Decrease in Cash (177) (1,611)
Cash - Beginning of Period 13,595 1,942
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Cash - End of Period $ 13,418 $ 331
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Please refer to Tahera's website (www.tahera.com) to view the complete second quarter report for the six months ended June 30, 2004.
On Behalf of the Board,
R. Peter Gillin
Chairman and CEO
About Tahera Diamond Corporation
Tahera Diamond Corporation is a unique Canadian diamond Company focused on developing its wholly-owned Jericho Diamond Project as CANADA'S NEXT and NUNAVUT'S FIRST DIAMOND MINE. Tahera has several other very prospective diamond projects in Canada's prolific Slave Craton. Tahera is debt-free and well financed with over $13 million cash on hand. The common shares of the Company trade on the TSX under the symbol 'TAH'.
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Source: Tahera Diamond Corporation
De Beers leading $400m marketing strategy
July 26, 2004
By Nicky Smith
Johannesburg - De Beers, the biggest diamond miner, and its partners in the "supplier of choice" marketing strategy will spend $400 million (R2.48 billion) this year selling the idea that diamonds are rare and signify such things as fidelity.
In 2003 De Beers' marketing arm, the Diamond Trading Company, spent $180 million on marketing while its partners spent $272 million on high-quality marketing aimed at stimulating demand while keeping prices high.
Gary Ralfe, the managing director of De Beers, said on Friday at the release of interim results that Japan, one of the company's most important markets, had shown its first signs of growth in 10 years, expanding by between 1 percent and 2 percent.
The group recorded double-digit growth in China and Hong Kong and sales in the UK and France were also healthy.
The company remained concerned about its South African operations, where five out of its seven mines were making operating losses at the current rand/dollar levels.
Ralfe said the company would prefer voluntary retrenchments before it started firing people or closing mines. Once a mine was closed, he said, it would not open again.
On a brighter note, recoveries from dumps at the Kimberley mine were yielding 2 million carats a year.
The company said it was talking with the Angolan state-owned diamond mining firm Endiama and the Angolan government to secure its return to one of the world's most diamond-rich countries.
"Our geologists would dearly love to return to the country," Ralfe said.
It now had permits to start with its Canadian Snap Lake project.
"We should be able to proceed with the construction of the mine," Ralfe said, adding the company would be producing about $500 million worth of diamonds out of Canada by 2010.
De Beers pleaded guilty to charges of price fixing industrial diamonds in the US recently and paid a $10 million fine.
The company said it believed it was legally compliant on both the industrial and gem side of its business, but no explicit guidance has been given to the company by the US department of justice to this effect.
De Beers said it was in no rush to get back to the US.
De Beers loses its sparkle
By Edmund Conway (Filed: 24/07/2004)
De Beers, the giant of the diamond industry, said yesterday its total earnings fell during the first half of the year, casting grave doubt over the future of the world's oldest and best-known diamond mines.
The group said that it had placed a number of its South African operations under review, including Kimberley, the world's first diamond mine, and the Cullinan, whose stones decorate the Crown Jewels.
These mines are no longer generating a profit because of the strength of the South African rand and their diminishing resources.
The news comes at a critical time for the company, which is renegotiating the rights to its biggest mine. At the same time, the European Commission is considering De Beers' contract to buy diamonds from Alrosa, a Russian state-owned miner.
Turnover at the group, which is 45pc-owned by mining group Anglo American, rose 2.2pc to $2.98 billion (£1.6 billion) during the six months to June. Total profits fell from $365m to $341m despite a rise in diamond prices during the period.
Managing director Gary Ralfe said the company had failed to meet its production targets for the year.
"We must register some disappointment here," he said. "We have set ourselves the target of increasing carat production by 7pc a year but problems in Botswana, the world's largest diamond producer, mean we have fallen short and are 20pc behind our budget.
"If you add our three mining companies together we still came out 2.6pc behind last year and 18pc behind budget."
De Beers has seen its share of the world diamond market fall from around 80pc to less than 50pc in the past 10 years as new mines have been discovered in Russia and Canada.
De Beers Opens Door to U.S. Market With Price-Fixing Settlement
July 16 (Bloomberg) -- De Beers, the world's biggest diamond company, may return to the U.S. for the first time in more than half a century after pleading guilty to price-fixing charges in an Ohio court and agreeing to pay a $10 million fine.
De Beers, which Ernest Oppenheimer turned into a global cartel in the 1930s, plans to open a store on New York's Fifth Avenue as the company loosens its grip on sales of uncut gems and taps the $57 billion-a-year retail market. The U.S. accounts for 55 percent of retail diamond sales and has been closed to De Beers since the first antitrust complaint was filed after World War II.
``This has been a sword hanging over their head,'' said Alan Miller, chief executive of Johannesburg-based Stanlib Asset Management, which manages $25 billion, including shares of Anglo American Plc. Anglo owns 45 percent of De Beers. ``I am feeling good about this.''
The guilty plea Tuesday in U.S. District Court in Columbus, Ohio, came four years after Johannesburg-based De Beers, which sells three-fifths of the world's uncut diamonds, stopped hoarding gems to drive up prices, committed itself to being more transparent and backed a campaign to ensure that sales of diamonds no longer finance civil wars across Africa.
``De Beers is bringing a chapter of its history to a close,'' the company said in a statement. ``The decision to resolve this matter is consistent with our continuing commitment to creating a new, modern De Beers that is fully prepared to assume its role as a responsible corporate global citizen.''
Anglo American
Anglo American, the world's second-biggest mining company, received $386 million in profit before one-time items and goodwill amortization from its stake in De Beers last year. The figure was 23 percent of Anglo's total earnings and its biggest source of profit.
The Oppenheimers, Africa's richest family, and the Botswanan government own the rest of De Beers. Nicky Oppenheimer, Ernest's 59-year-old grandson, is the company's chairman.
Gaining access to the U.S. market will increase earnings and bolster Anglo's share price, Miller said. Anglo shares rose 11 percent to 1,130 pence during the past 12 months in London, outpacing a 6.6 percent gain in the FTSE 100 Index.
De Beers in 2001 formed a $400 million retail jewelry venture with LVMH Moet Hennessy Louis Vuitton, the world's biggest luxury goods company. The venture has one store in London and three in Tokyo.
The store on Old Bond Street in London offers jewelry ranging from earrings that sell for 600 pounds ($1,114) to a necklace of 52, two-carat diamonds at 1.4 million pounds. Customers can inspect the gems through microscopes, which reveal an invisible De Beers trademark, and devices that flash beams of light through each stone to detect imperfections.
Manhattan Store
Plans to open the New York store are ``absolutely in place,'' and the opening date depends on construction schedules, Guy Leymarie, the venture's chief executive, said from his office in London. De Beers is considering its options for business in the U.S., said Andrew Bone, a London-based company spokesman.
``De Beers has made the strategic decision that it must be able to operate in the United States of America, apparently at any price,'' said Chaim Evan-Zohar, the principal shareholder of Ramat Gan, Israel-based industry consultant Tacy Ltd.
On Tuesday, De Beers was fined $10 million after pleading guilty to charges that it fixed prices for industrial diamonds in 1991 and 1992. The Justice Department in turn agreed not to pursue additional criminal charges.
``This guilty plea reflects the department's persistence in the fight against illegal price fixing,'' R. Hewitt Pate, assistant attorney general in charge of the Justice Department's Antitrust Division, said in a statement.
Gina Talamona, a Washington-based spokeswoman for the department, declined to comment on whether any remaining issues would prevent De Beers from doing business in the U.S.
``Our matter with them is resolved,'' she said. ``That's pretty much all I can say.''
Travel Concerns
De Beers had previously refused to appear in an American court, and its directors wouldn't travel to the U.S. for fear of prosecution.
``We chose not to do business there,'' Bone said. ``We didn't want to open ourselves to an element of risk.''
Founded by British colonist Cecil John Rhodes 116 years ago, De Beers sells uncut gems to 87 exclusive clients through a series of 10 auctions each year. U.S. customers buy diamonds at the sales, which take place in other countries. Other U.S. business, such as advertising, is handled through intermediaries.
``The U.S. Department of Justice Department has achieved what it wants, to get a scalp, and it allows De Beers to get back into that massive market,'' said Anwaar Wagner, an analyst at Metropolitan Asset Managers in Cape Town, South Africa, which oversees the equivalent of $5.3 billion. ``It opens the door.''
Civil Suits
Still, by admitting guilt De Beers may have opened the way for civil lawsuits. W.B. David & Co., a former De Beers client, this month filed a lawsuit in New York demanding $100 million in damages caused by De Beers's alleged monopolistic practices. De Beers said the suit was without merit.
``The problem is a whole host of other guys are going to sue them,'' said Daniel Sacks, who oversees mining stocks at Cape Town- based Investec Asset Management, which oversees $39 billion. ``Their business model is still monopolistic in nature.''
Ernest Oppenheimer, who founded Anglo American in 1917, gained control of De Beers 12 years later. As other producers increased output in the 1930s, he sought to control prices by setting up the Diamond Corp., which bought gems from competitors and sold them to diamond cutters. The company controlled about 80 percent of rough diamond sales as recently as the 1980s.
De Beers on Wednesday said it completed the sale of its diamond stockpile, which was worth $4.9 billion in 1999.
Competition Increases
Selling diamond engagement rings, necklaces and earrings directly to customers may be De Beers's best opportunity for growth as competitors once again increase production to take advantage of increasing demand for uncut gems.
De Beers first-half sales will likely rise 5.5 percent to $3.08 billion, according to the median estimate of four analysts surveyed by Bloomberg.
BHP Billiton, the world's biggest mining company, and No. 3 Rio Tinto Group have opened diamond mines in Canada to compete with De Beers's pits in Botswana and South Africa and the company's ships that sift gravel off the Namibian coast.
De Beers's dominance of the rough diamond market isn't in danger for now.
``It will take a long time for the legacy of being the world's dominant supplier of rough diamonds to erode,'' said John Meyer, an analyst at Numis Securities in London. ``In the meantime they will grow their margins.''
An Israeli tycoon is helping to force De Beers to surrender its control of the world's diamond market
HOW much turmoil can the diamond industry sustain without shattering? On July 13th in an Ohio court De Beers, the world's largest producer of rough stones, finally pleaded guilty to charges of price-fixing of industrial diamonds and agreed to pay a $10m fine, thereby ending a 60-year-long impasse. De Beers executives are at last free to visit and work directly in the largest diamond market, America.
A few days earlier, on July 9th, the first case of successful industry self-regulation against trade in so-called “conflict diamonds” took place when Congo-Brazzaville was punished for failing to prove the source of its diamond exports. And on June 28th Lev Leviev, an arch-rival of De Beers, opened Africa's biggest diamond-polishing factory in Namibia.
Behind all these events lies sweeping change in an industry that sells $60-billion-worth of jewellery alone each year. For generations it has been run by De Beers as a cartel. The South African firm dominated the digging and trading of diamonds for most of the 20th century. Yet the system for distributing stones established decades ago by De Beers is curious and anomalous—no other such market exists, nor would anything similar be tolerated in a serious industry.
Nicky Oppenheimer, head of De Beers
Aug 7th 2003
The problem of conflict diamonds
Jan 2nd 2003
The diamond business
Oct 18th 2001
The changing diamond business
Jun 1st 2000
The diamond business
Dec 18th 1997
Johannesburg
South Africa
Wars
The UN posts information on conflict diamonds. Global Witness comments on Congo-Brazzaville's removal from the Kimberley Process. See also De Beers, Debswana, Namdeb, the World Diamond Council, BHP Billiton, Rio Tinto and Alrosa.
De Beers runs most of the diamond mines in South Africa, Namibia and Botswana that long produced the bulk of world supply of the best gemstones. It brings all of its rough stones to a clearing house in London and sorts them into thousands of grades, judged by colour, size, shape and value. For decades, if anyone had rough diamonds to sell on the side, De Beers bought these too, adding them to the mix. A huge stockpile helped it to maintain high prices while it successfully peddled the myth that supply was scarce.
De Beers has no interest in polishing stones, only in selling the sorted rough diamonds to invited clients (known in the trade as "sightholders") at non-negotiable prices. Sales take place ten times a year. The favoured clients then cut and polish the stones before selling them to retailers.
With its near monopoly as a trader of rough stones, De Beers has been able to maintain and increase the prices of diamonds by regulating their supply. It has never done much to create jobs or generate skills (beyond standard mining employment) in diamond-producing countries, but it delivered big and stable revenues for their governments. Botswana, Namibia, Tanzania and South Africa are four of Africa's richest and most stable countries, in part because of De Beers.
One family got extremely rich too. The Oppenheimers created the “single-channel marketing” system of shovelling all available stones to the clearing house. They came to dominate De Beers after Ernest Oppenheimer took control of most of Namibia's diamond mines nearly a century ago. He formed a mining conglomerate called Anglo American, before grabbing the chairmanship of De Beers. The family is thought to be worth around $4.5 billion today; Nicky Oppenheimer, Ernest's grandson, is Africa's richest man. The family still owns a more than 40% direct stake in De Beers, and its members—Nicky Oppenheimer and his son, Jonathan—run the firm. It may own more De Beers shares held indirectly through Anglo American's 45% stake.
But this stable, established and monopolistic system is now falling apart. Three things have happened. First, other big miners got hold of their own supplies of diamonds, far away from southern Africa and from De Beers's control. In Canada, Australia and Russia rival mining firms have found huge deposits of lucrative stones: BHP Billiton, Rio Tinto and Alrosa have been chipping away at De Beers's dominance for two decades.
De Beers once controlled (though did not mine directly) some 80% of the world supply of rough stones. As recently as 1998 it accounted for nearly two-thirds of supply. Today production from its own mines gives it a mere 45% share. Only a contract to sell Russian stones lifts its overall market share to around 55%.
That is a painful shift, but De Beers is still the biggest diamond producer. And rival mining firms do share one big interest with it: high prices for the stones they dig from the ground. That is why, although it is under pressure, the central clearing system that sustains high prices could yet survive a bit longer. Rather than controlling a pure monopoly, De Beers might be able to run a quasi-cartel that stops the market from opening fully. De Beers says the price of rough stones is still rising; the price of polished stones has risen by 10% this year, according to polishedprices.com, an independent diamond website that tries to track such things.
Worth fighting for
The next challenge might be manageable too. De Beers's system is highly secretive. Nobody knows the ultimate source of particular diamonds it sells, as all are mixed together in London. But De Beers faced extraordinary public-relations pressure after it emerged that rebel armies in Africa were funding their wars by selling what became known as conflict diamonds.
Since 2000 almost 70 countries and all of the big industry players (under the threat of consumer boycotts and activist campaigns by, among others, a London-based group called Global Witness) have adopted standards designed to prove the origins of their diamonds. The so-called Kimberley Process is now in force: governments must issue certificates of origin for the stones they export, and the stones can then be tracked.
It was under this agreement that Congo-Brazzaville was punished last week by being expelled from the Process (the first country ever to be thus censured). As a result, legal trade in its diamonds should cease. It is a test case for the industry.
The introduction of the Process could have threatened De Beers, which wanted to maintain the right to buy diamonds anywhere it pleased and to keep its purchases secret. Eli Izhakoff of the World Diamond Council, an industry body based in New York, says the new rules mean “the industry is changing—it is nothing like it was four or five years ago.”
But although the regulations make it easier to track the flow of rough diamonds, they have not required De Beers to open all its books to public scrutiny. Most of those diamond-fuelled African wars are over. And the firm has a declining interest in buying up any rough stones that appear on the market. It knows that its ability to control world supplies is dwindling.
It is the third challenge that is much more troublesome. This is a threat to break up entirely the way De Beers organises the industry. It can best be summed up in two words: Lev Leviev.
Like the Oppenheimers, Mr Leviev has made himself very rich over the past three decades. An Israeli of Uzbek descent, he is reputedly worth around $2 billion. Though he has interests in transport and property, his real love is diamonds. His Lev Leviev Group is the world's largest cutter and polisher of them. He has mining interests too: his fleet of clanking mining ships began operating off Namibia's coast earlier this year, sucking up diamonds from the sea bed. He boasts it is the world's second-largest fleet; only De Beers has a bigger one.
And Mr Leviev recently moved into diamond retailing. He claims that he is the only tycoon with interests in every stage of production from “mine to mistress” (a canard in the industry holds that men buy more diamonds for their mistresses than for their wives). But his real power lies in the cutting and polishing businesses.
Mr Leviev says he is the only tycoon with interests in every stage of production from “mine to mistress”
He has factories in Armenia, Ukraine, India, Israel and elsewhere. These give him power to challenge De Beers's central clearing house and seek instead to channel stones directly, and at a lower price, to his own polishers. There is a more personal explanation too. Mr Leviev long worked as one of those De Beers sightholders, buying unseen parcels of stones at non-negotiable prices. Even as recently as last year he was among De Beers's clients in South Africa. Being forced to take or leave the stones granted by the diamond cartel infuriated him. He was eager to strike back.
His breakthrough came in Russia. Mr Leviev has cultivated close ties with Russian politicians, including Vladimir Putin long before he became president. Already well known as a cutter and polisher of diamonds in the 1980s, Mr Leviev was asked to help the Soviet state-owned diamond firm set up local factories 15 years ago.
He agreed and formed a joint-venture with the state firm, now called Alrosa. But he insisted that stones for the factories be supplied directly from Russian mines, rather than diverted through De Beers's central system. De Beers was furious at the loss of supply, but the factories got their local stones. When the factories were privatised, Mr Leviev somehow emerged as the exclusive owner.
What happened in Russia set a pattern for clashes elsewhere. Mr Leviev has found that governments welcome factories that create jobs and add value to the diamonds they export; it is a smart way to snipe at De Beers.
Can Lev levitate?
Angola was next. Angola's diamonds are among the world's best when measured by value per carat (see chart) and promise a lucrative return for anyone who can market them. De Beers has had a long interest there. Mr Leviev first invested $60m in the country in 1996, financing a mine at a time when civil war was raging. And just as he cultivated Russia's governing elite, he struck up warm relations in Angola.
It was a well-timed move. The Angolan government despised De Beers. In the days when its monopoly was secure, De Beers regularly bought up any supply of rough diamonds that appeared on the market. It was accused of helping, indirectly, to fund UNITA, the rebel army in Angola, which sold huge quantities of diamonds. In 2001 De Beers ended a spat with the government by quitting the country. By then Mr Leviev had already moved in, eager for another supply of good stones.
By the time the government won Angola's war in 2002, thereby getting control of all the country's diamond mines, the contracts it had struck with Mr Leviev (ie, those lost by De Beers) were worth $850m a year, a sum greater even than that lost by De Beers in Russia.
Mr Leviev has not had it all his own way. Last year Angola's government abruptly cancelled three-quarters of his deal. Some observers accused Mr Leviev of using underhand means (he is close to the daughter of José Eduardo dos Santos, Angola's president) to win them in the first place. Yet, however he did it, Mr Leviev showed in Angola that he could barge aside De Beers in a valuable area near its southern African heartland.
Mr Leviev has been inspired to take another swipe at his rival. On June 28th he took the arm of Sam Nujoma, Namibia's president, and guided him around a sparkling new diamond-polishing factory in Windhoek, Namibia's capital. “For years we have been told this could not be done,” commented various Namibian politicians.
Now Mr Leviev, saviour-like, strode around his factory, showing off row upon row of workers, who wore uniform green overalls and fiddled with chrome machines and modern flat-screen computers. Mr Leviev boasts that, with its capacity for 550 workers, the factory is Africa's biggest.
Jonathan Oppenheimer, affable heir to the Oppenheimer dynasty, says he does not understand what Mr Leviev is up to in Namibia: “And when we don't understand, we worry.” He is right to be concerned. Mr Leviev's obvious next step in Namibia is to challenge De Beers directly. De Beers's mines are run in a joint venture with the government called Namdeb. A 1999 mining law lets the government force any miner to supply stones locally. If Mr Leviev demands it, the government could tell De Beers to provide stones directly to Mr Leviev's new factory, a repeat of the Russian blow.
Clearing up
More important, if Namibia is able to establish a viable cutting and polishing industry using its own stones, then why not every other diamond-producing country too? That would seriously threaten De Beers. Mr Nujoma all but dared his neighbours to follow suit. “To our brothers and sisters of neighbouring states, Angola, Botswana, South Africa, I hope this gives you inspiration to try to imitate what we have here,” he said at the factory opening.
Mr Leviev is building another factory in Luanda, Angola, partly hoping to curry favour with the government. More important, he is offering to build a factory in Botswana, the jewel in the crown of De Beers's empire. De Beers has close ties with the Botswana government: they share a joint venture, Debswana, that exclusively mines the country's diamonds; Botswana gets a huge share of its foreign currency and a large part of its national income from diamond revenues. It is a similar arrangement to that in Namibia.
In an interview in Windhoek last month, Mr Leviev said he had offered Botswana's government a factory to employ “tens of thousands” of people, a scale vastly larger than in Namibia. A senior civil servant from Botswana toured the Windhoek factory with Mr Leviev. As Mr Oppenheimer concedes, this is a delicate time for Mr Leviev to be courting in southern Africa. De Beers is still renegotiating the terms of an 18-year lease on the Jwaneng mine, in southern Botswana, which is due to expire at the end of this month. The mine is thought to be worth $1.3 billion a year, producing stones of a quality that would have Mr Leviev salivating.
More broadly, De Beers must renegotiate the terms of all its marketing operations in Botswana and in Namibia every five years. These talks are also due. While no-one expects Mr Leviev to break up De Beers's relationships in these countries—Mr Oppenheimer is confident that the government will not do anything to risk its big revenues—his appearance on the scene puts pressure on De Beers.
The obvious step for De Beers now would be to take on Mr Leviev at his own game. In Botswana and Namibia there have been a few diamond-polishing factories backed by De Beers. But De Beers does not want to be involved in that stage of diamond production.
It is first a miner and only belatedly a retailer of diamonds. But it is blocked from the production steps in between as long as it remains the major supplier of stones to the whole industry, says Mr Oppenheimer. Buyers of its stones would suspect De Beers of holding back the best diamonds for its own manufacture and would revolt.
Nor does Mr Oppenheimer think a polishing industry is viable in many diamond-producing countries, whatever Mr Leviev says. In Namibia just a few hundred people work as polishers and cutters. There are few skilled workers, the scale of production is small and wage costs are roughly ten times that of India, which dominates the world market and where 900,000 people work as basic polishers.
Nor are small countries, such as Namibia, likely to develop the top-level skills needed for the very highest-quality stones. Those skills are concentrated in a few cities, such as Antwerp, Tel Aviv and New York. Within southern Africa, only South Africa has a long-established cutting and polishing industry, to which De Beers supplies some good-quality stones (“specials” in the language of the trade). But Mr Leviev probably does not care. A few factories may be uneconomic, but if they allow him to get hold of direct supplies of diamonds, then so be it.
A polished act
Mr Oppenheimer is worried that a more fragmented industry will not just damage De Beers, but that the whole industry might collapse. Consumers believe diamonds are valuable largely because of decades of clever marketing by De Beers and its clients. De Beers itself spent $180m on advertising last year, its clients a further $270m. That sort of spending could not be co-ordinated and sustained, he suggests, if the industry were to fragment.
That is a risk; but there are opportunities for De Beers too. As it has lost market share, the old goliath has become nimbler. No longer focusing exclusively on defending a cartel, De Beers is freer to make decisions according to commercial interest. For instance, it now buys fewer stones at uneconomic prices; profits matter more than market share. A trimmer De Beers, with a pared down list of clients, might even be able to make bigger profits than the old giant. Last year it produced healthy profits of $676m on sales of $5.5 billion.
But its decision to settle American antitrust charges laid against it in 1994 points to how much it is feeling the pressure. De Beers executives should now be free to travel to America to conduct business without fear of arrest. That should make it easier to promote De Beers LV, a hitherto disappointing partnership with the luxury-goods firm LVMH to market De Beers-branded diamonds.
That venture may prove essential for De Beers's long-term health, as more producers bet on getting a presence in profitable diamond retailing. Already rivals are moving: Canada's Ekati mine markets its stones directly to consumers; Mr Leviev's firm struck a deal in May with Bulgari, an Italian jewellery maker, to market Leviev-branded stones. De Beers's days of market dominance are clearly drawing to a close. But consumers should not get too excited just yet. Whether a duopoly or oligopoly emerges, diamond prices are not going to plummet. Mr Leviev will be among those putting a stop to that.
Sudbury Contact quadruples land position in area around newest Ontario diamond discovery
Stock Symbol: SUD (TSX)
TORONTO, July 14 /CNW/ - Sudbury Contact Mines Limited reported today
that its large, recently discovered KL-22 kimberlite has been confirmed as
diamondiferous. KL-22 was previously indicated to be approximately 9.5
hectares in size on the basis of its geophysical signature. KL-22 is part of
the Company's 100%-owned Timiskaming Diamond Project, located just west of the
historic mining town of Cobalt, Ontario, 550 kilometers north of Toronto.
Largest Landholder in Highly Prospective Diamond Camp
KL-22, along with previously announced diamond-bearing kimberlite KL-01,
was discovered on Sudbury Contact's Klock Property west of the Montreal River.
An aggressive staking program has been carried out since January and as a
result the land package around the two kimberlite pipes has more than
quadrupled in size from approximately 7,500 hectares to 36,000 hectares. The
Company's past till sampling, along with alluvium sampling recently carried
out by the Ontario Geological Survey, has directed additional staking,
expanding the property position to capture areas of other likely kimberlite
intrusions. The Timiskaming Diamond Project now covers an area in excess of
65,000 hectares making Sudbury Contact the single largest landholder in the
area.
The two diamondiferous discoveries lie some 20 kilometers southwest of
the Company's 95-2 diamond deposit and are within a large area close to
infrastructure and accessed by a network of new logging roads that include a
bridge across the Montreal River. Both discoveries were made by a combination
of detailed airborne geophysics and target-specific till sampling. This work
has also identified other high priority targets that await core drilling on
the original Klock property claims.
Small Sample Yields Large Diamond Count
Petrographic and kimberlite indicator mineral analyses have confirmed
that the KL-22 kimberlite is a magmatic, highly macrocrystic hypabyssal
kimberlite exhibiting a modest peridotitic diamond signature and an
encouraging diamond carrying capacity. The discovery hole was drilled
vertically into the southern lobe of this large bilobate body, encountering
kimberlite from 21m to the end of hole at 87m. Microdiamond results from the
Thunder Bay Mineral Processing Laboratory of Kennecott Canada Exploration Inc.
were for five samples totaling 84.94kg and returned 19 microdiamonds, of which
7 could be classified as being macrodiamonds as they have at least one axis
exceeding 0.5mm, one of which exceeded 0.5mm in two dimensions. The breakdown
per sieve class is as follows:
<<
------------------------------------------------------------------
HK Facies
------------------------------------------------------------------
Sieve Class Diamonds Weight of Diamonds
(mm sq. mesh) (No.) (carats)
------------------------------------------------------------------
1.70 to 2.36 0 0
1.18 to 1.70 0 0
0.85 to 1.18 0 0
0.600 to 0.850 0 0
0.425 to 0.600 0 0
0.300 to 0.425 2 0.00236966
0.212 to 0.300 5 0.00422776
0.150 to 0.212 4 0.00134187
0.105 to 0.150 8 0.00075437
------------------------------------------------------------------
Totals 19 0.00869366
------------------------------------------------------------------
Total Processed 84.94 kilograms
------------------------------------------------------------------
To put the KL-22 and KL-01 results into context, the two discovery
reverse circulation samples from the now known higher grading Weathered TKB of
Kimberlite 95-2, yielded 9 diamonds from 77.92 kg., of which 3 were one-
dimensional macrodiamonds and one of those exceeded one millimeter in two
dimensions.
Large Tonnage Potential in Emerging Diamond Camp
The magnetic signature for KL-22 covers an area of approximately 9.5
hectares which would place it second in size in Eastern Canada to the roughly
16 hectare Victor Pipe owned by De Beers Canada Corporation. The Victor Pipe
is located in the James Bay Lowlands along the same structural trend hosting
the Timiskaming kimberlite cluster. The 95-2 and KL-01 pipes both have
approximate 5 hectare surface areas, which along with the nearby KL-22
kimberlite, potentially provides the Company with a very large tonnage
project. With other high priority targets awaiting drill testing and the large
newly acquired land package to explore, the Company is optimistic that other
diamondiferous kimberlite pipes will be discovered. An updated location map
has been posted on the Company's website, www.sudburycontact.com which shows
the kimberlites in relation to the claim package and superior infrastructure
of the project or click on the link below:
http://ir.thomsonfn.com/IRUploads/10493/FileUpload/LOCATION.pdf
On-going Regional Exploration
The company is currently receiving tenders from airborne geophysical
survey contractors to fly a detailed survey over the newly acquired ground
centered around the Klock Property. Once the anomalies have been prioritized a
helicopter-supported till sampling program will be planned and implemented.
Both of these programs can be conducted in late summer or early fall. The
combination of detailed airborne surveying and follow-up till sampling
programs has proven to be an effective exploration approach leading to the
discovery of the KL-01 and KL-22 pipes. Exploration plans being currently
formulated also include delineation drilling of the new kimberlite pipes and a
large program of anomaly testing through follow-up geophysics and core
drilling.
Kimberlite SC-118 Update
On the Quebec portion of the Timiskaming Diamond Project, kimberlite
SC-118 recently received two additional delineation drill holes. Both holes
were successful in intersecting kimberlite and microdiamond results are
expected shortly. Several high priority targets remain untested in Quebec and
will be the focus of future drilling.
Audit of Encouraging 95-2 Diamond Deposit Results Nearing Completion
As previously disclosed, the Company's 95-2 Kimberlite returned an
initial parcel of 67.35 carats of diamonds from a 652 tonne mini-bulk sample
derived from reverse flood large diameter (LDD) drilling. The preliminary
results were encouraging for the volumetrically dominant East-Central portion
of the deposit, where recovered grades averaged approximately 19.18 carats per
hundred tonnes (cpht) for the upper 24m of kimberlite, and 13.3 cpht down to
300m, which was the deepest test. The grades and diamond parcel encountered
thus far in Kimberlite 95-2 are encouraging, and have established it as
Canada's southernmost diamond deposit and certainly one of the most promising
given it's proximity to infrastructure.
The Company has engaged De Beers Canada Exploration Inc. to process and
recover the diamonds from seven audit samples of the 61 mini-bulk samples
which made-up the LDD program. Processing at De Beers Grand Prairie facility
is complete, and all concentrates have been shipped under secure conditions to
Johannesburg, South Africa to complete the audit process. Results are expected
later this month, following which the Company will be in position to have
expert valuations and grade modeling carried out, along with the first
resource calculations for the deposit. Once this work is complete, final
mini-bulk sample results will be reported along with an outline of the next
phase in 95-2's advanced evaluations.
Scientific and Technical Data
Sudbury Contact Ltd. has prepared this disclosure of diamond exploration
results using guidelines that have been recommended by the Canadian Institute
of Mining, Metallurgy and Petroleum.
Kennecott Canada Exploration Inc. Mineral Processing Laboratory is
accredited ISO 17025 by the Standards Council of Canada.
The following information relates to the Qualified Person, Quality
Control and other requirements regarding the above properties as defined under
the Canadian Securities Administrators' National Instrument 43-101:
(1) Paul Sobie, registered Professional Geologist of Ontario and Vice
President of MPH Consulting Ltd. of Toronto, is a consulting
contractor to Sudbury Contact on the Timiskaming diamond project.
He is the Qualified Person on the project responsible for the
Quality Control and reporting of project information, and as such
Mr. Sobie possesses the required qualifications.
(2) Mr. Sobie has verified the data disclosed in this press release,
including the underlying sampling, analytical and test data
underlying the disclosed results.
About Sudbury Contact
Sudbury Contact Mines Limited is an exploration and development company
with diamond and gold properties in Ontario, Québec, Northwest Territories,
Newfoundland, Nevada and Idaho. Agnico-Eagle Mines Limited (NYSE: AEM, TSX:
AGE) is currently the largest shareholder of Sudbury Contact.
NEW DIAMOND TRADING COMPANY EXECUTIVE TEAM ANNOUNCED
July 01, 2004
Gareth Penny, Managing Director of the Diamond Trading Company (DTC), has announced his new executive team – a diverse team that represents five nationalities and has over 200 years of accumulated experience within the Group. “We have every confidence this team will provide the leadership we will need to meet the demands of the next few years. We may work in the DTC but we are all part of one organisation focused on the mining and marketing of natural gem diamonds,” says Gareth Penny.
Purchasing Director Des Cavanagh joined DTC in 1977 as a diamond sorter and valuer. He has held a variety of positions with the De Beers Group with executive responsibilities in the Sales department. Des, who has had close involvement with all the main diamond cutting centers, is currently the Managing Director for the Diamdel group of companies.
Des Cavanagh
Sorting Director Brian McDonald joined DTC in 1970 also as a diamond sorter. In 1981, as the Jwaneng mine came on stream, he set up the sorting operations in London and then took this team over to Botswana. Following a posting as General Manager at BDVC he returned to London in 1996 as Director of Sorting.
Brian MacDonald
Sales Director Varda Shine came to the DTC in 1997 having worked for 14 years at Diamdel Israel. Since joining the DTC she has worked in most areas of the Diamond Division and in the last few years she has been heavily involved in projects directly related to the implementation of the DTC’s new strategic plan.
Varda Shine
Marketing Director Stephen Lussier joined the DTC as the marketing director for the US and Canada in 1985 from NW Ayer, the advertising agency, in New York. He served as director for the Asia-Pacific region before becoming Executive Director for Marketing in 2002. Stephen will serve as Gareth’s deputy in London.
Stephen Lussier
External Relations Director Rosalind Kainyah qualified as a barrister in 1988 and joined the DTC in 2002 as the company’s commercial lawyer. She has also advised other De Beers Group companies on matters of corporate governance, the legal implications of proposed strategic projects and on public relations. Prior to joining the DTC, Rosalind was an environmental lawyer advising UK government departments and agencies on environmental policy and legislation. She also worked briefly as an environmental lawyer for Anglo American Corporation of South Africa.
Rosalind Kainyah
Human Resources Director Leon Smith joined DTC in February 2004 from De Beers’ head office in Johannesburg. He joined De Beers in 1990 from Anglo American Corporation’s Gold Division. Following a variety of different HR positions in a number of De Beers mines in South Africa, Leon was transferred to Head Office where he was involved in a range of strategic HR transformation initiatives, including the organisational workstream responsible for the restructuring of De Beers Consolidated Mines into a distinct South African mining company.
Leon Smith
Finance Director Mike Page joined the DTC in 1988 as financial controller. After De Beers secondments to various different countries in Africa, including three years as Group Financial Manager with Debswana, he returned to the DTC in 1998 as Manager of the Finance Department. He is a Member of the Associate Institute of Chartered Accountants.
Mike Page
Research & Development (R&D) Director Martin Cooper joined the DTC R&D department in 1978. He has a BSc in Physics and an MSc in Materials Science from London and Bristol universities respectively, and is a specialist in diamond and laser physics.
Martin Cooper
Pricing and Supply Chain Control Director Alan Campbell joined the DTC in 1980 and spent seven years as a negotiator for De Beers’ southern African production. He established De Beers’ representative office in Moscow and stayed there for four years as the DTC’s resident diamond expert, participating in contractual negotiations with Alrosa and the Russian government. He joined the DTC sales department in 1996 and as one of the architects of Supplier of Choice he devised the Policyholder Statement documentation. As head of Sales Planning Alan has overhauled the DTC’s distribution process, conceiving and implementing the ITO system, which is the client selection and allocation process that underpins DTC’s Supplier of Choice strategy.
Alan Campbell
Canada Offers Alrosa Participation in Diamond Surveys
(July 1, '04, 6:02 Edahn Golan)
Alrosa was offered to participate in Canadian geological land surveys and the development of Canadian diamond deposits.
According to a report in the Russian AK&M, the surprising Canadian proposal was made by the Canadian Deputy Natural Resource Minister Harry Nashem to Alrosa’s President Vladimir Kalitin during a visit of an Alrosa delegation in Canada.
A delegation of top Alrosa management, headed by Alrosa president Vladimir Kalitin, visited Canada in January seeking areas of cooperation.
During the visit the group met with some of Canada’s diamond mining enterprises such as miners BHP Billiton, Rio Tinto and De Beers.
Namibia Seeks More Control of Its Diamonds
Business Day (Johannesburg)
June 30, 2004
Posted to the web June 30, 2004
Emma Muller
Johannesburg
Prime minister signals policy change
NAMIBIAN Prime Minister TheoBen Gurirab yesterday signalled a wind of change for the country's diamond industry and possibly that of the entire southern African region.
In an interview this week at the opening in Windhoek of the largest diamond cutting and polishing factory in Africa, backed by Israeli entrepreneur Lev Leviev, Gurirab said a process of change had started.
At the moment, De Beers markets the vast bulk of production from Namibia and all the production from Botswana.
Gurirab said his government would be prepared to invoke a specific clause in the Namibian Diamond Act of 1999, which gives the government the right through section 58 to force producers such as NamDeb, the De Beers joint venture, to make rough available to resident diamond manufacturers.
This is in line with Canada's Northwest Territories where producers are effectively forced to supply a portion of their production locally for domestic processing.
"We would ourselves want to do what the Canadians are doing. Once Lev Leviev has made the policy decisions that goods should be supplied by Namibia, we should sit together and arrange that it happens. We would revisit the 10% clause as a way forward to supply Leviev with diamonds.
"Leviev did his part, Namibia must reciprocate," he said.
Gurirab's remarks highlight a wider political ambition in diamond-producing countries such as SA, Angola, Russia and Canada to manufacture diamonds domestically through local supplies and subsequently brand them as diamonds from their country of origin.
As well as the plant in Namibia Leviev is building a factory in Angola.
The arrival of Leviev in Namibia comes at time of growing unease in southern Africa over the way diamonds have been traditionally marketed by De Beers.
SA is reviewing its diamond sector regulations, including the terms on which De Beers and the industry export diamonds.
Official sources in Botswana have said the government is considering selling part of its production on the open market .
Speaking at the official opening of the plant Gurirab said: "You don't realise what you have done for us, Leviev.
"You have reminded us that diamonds in our country belong to our people. There has been deliberate programming, indoctrination and brainwashing."
He said Namibia was told it was not a good place to have a facility like the one which is backed by the Leviev group.
"You have introduced us to our level. You have brought boys and girls from the street. In a matter of months and weeks they are the ones who are cutting and polishing our diamonds. We have now put that lie to rest," he said.
Namibian m inisters in their speeches also emphasised the need to add value to rough diamonds found in Namibia.
Relevant Links
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Namibia
Minister of Trade and Industry Jesaya Nyama said: "To our neighbours Angola and Botswana, we hope you imitate what has been taking place here.
"The time has come to put an end to the export of raw materials."
SouthernEra ups its stake in Messina
6/29/2004
Companies in this story
SouthernEra Resources Limited
Articles in related categories
Africa
Capital Markets
Platinum Group Elements
SouthernEra Resources (SUF-T) has exchanged more than 10.5 million of its shares for 3.7 million shares in Johannesburg-listed platinum miner Messina.
The shares involved represent 12.4% of SouthernEra's and 18.4% of Messina's issued and outstanding shares. In the end, the deal boosts SouthernEra's stake in Messina to 91.5%. The shares issued by SouthernEra are subject to a hold period of one year.
The equity dilution resulting from the transaction is more than offset by the increase in ownership of Messina, says SouthernEra CEO Patrick Evans.
Messina owns the Voorspoed, Doornvlei and Zebediela sections of the Greater Messina platinum project in South Africa's Bushveld complex. Measured resources at Greater Messina total 26.3 million tonnes grading 5.4 grams platinum, palladium, rhodium, ruthenium, iridium plus gold (PGEs plus gold). An additional 66.6 million tonnes running 5.05 grams PGEs plus gold are classified as the indicated resources. The inferred category is home to another 32.53 million tonnes averaging 5.4 grams PGEs plus gold.
Messina's first of three planned mines, at the phase 1 Voorspoed section, is about half-way to full production. At full steam, the Voorspoed complex is expected to mine 120,000 tonnes of ore per month, resulting in the annual production of around 200,000 oz. PGEs plus gold.
The company has been issued a mining licence for the Doornvlei section. In mid-2002, SouthernEra and black economic empowerment partner Mvelaphanda Resources were granted the rights to the Dwaalkop section of Greater Messina. A feasibility study considering the joint development of the Doornvlei and Dwaalkop sections is slated for release in the third quarter; the results of a scoping study of the Zebediela section are also expected at that time.
Earlier this year, with the price of platinum at heights not seen in more than 20 years, SouthernEra said it was considering splitting its platinum and diamond holdings into two separately listed companies (T.N.M., April 19-25/04).
SouthernEra's PGE portfolio also includes the Millennium platinum project, on the southeastern lobe of the Bushveld complex, in Mpumalanga province. The project is home to an indicated resource of 30.6 million tonnes grading 3.76 grams PGEs plus gold for around 3.7 million contained ounces.
The company's key diamond asset is a half-stake in the Klipspringer mine in Limpopo province. Mining there is slated to resume once the rand depreciates. De Beers Consolidated Mines, the diamond unit of Anglo American (AAUK-Q), and an affiliated black-empowerment company, Naka Diamond Mining, own the remaining interest in Klipspringer.
SouthernEra also has diamond exploration projects in Angola, Canada, South Africa, Gabon, Botswana, the Democratic Republic of Congo, and Australia.
Tm Bioscience Completes Share Consolidation
17:00 EDT Monday, June 21, 2004
TORONTO, June 21 /CNW/ - Tm Bioscience Corporation (TSX: TMC) today announced the completion of the consolidation of its issued and outstanding common shares on the basis of one (1) post-consolidation share for every five (5) pre-consolidation common shares.
"The common share consolidation, which follows our recently announced graduation to the TSX on April 12th, is another significant step forward in our Company's strategic evolution from a junior technology issuer to an established commercial enterprise," said Jim Pelot, Chief Financial Officer of Tm BioScience.
Tm Bioscience shareholders approved the consolidation of shares at the Company's annual and special meeting of shareholders held on June 2, 2004. All materials necessary to effect the share consolidation have been filed with the Toronto Stock Exchange (TSX) and trading of the Company's common shares on a consolidated basis is expected to commence on the TSX on Friday, June 25, 2004. The common shares of the Company will continue to trade under the symbol "TMC".
Letters of transmittal describing the details of the consolidation and the process by which to obtain share certificates representing the consolidated common shares are expected to be mailed out to registered shareholders of the Company on Tuesday, June 22, 2004. Registered shareholders may also obtain copies of the letter of transmittal by contacting their brokers or the Company's transfer agent, CIBC Mellon Trust Company.
Shareholders of Tm Bioscience who hold their shares through their broker or other intermediary and do not have actual share certificates registered in their name will not be required to complete and return a letter of transmittal. Any pre-consolidation common shares owned by such shareholders will automatically be adjusted as a result of the consolidation to reflect the applicable number of post-consolidation common shares owned by them and no further action is required to be taken by such shareholders. If as a result of the consolidation a shareholder becomes entitled to a fractional share, such fractions will be rounded down to the nearest whole number.
About Tm Bioscience
Tm Bioscience is a DNA-based diagnostics company developing a suite of genetic tests. Tm Bioscience's product pipeline includes tests for genetic mutations related to hematology, cystic fibrosis, drug metabolism and other debilitating genetic disorders. Tm Bioscience is located in Toronto, Ontario. Additional information about Tm Bioscience can be found at www.tmbioscience.com.
Included in this press release are forward-looking statements with respect to the Company. These forward-looking statements by their nature necessarily involve risk and uncertainties that could cause the actual results to differ materially from those contemplated by such statements. The Company considers the assumptions on which these forward-looking statements are based to be reasonable at the time they were prepared, but cautions readers that these assumptions may ultimately prove to be incorrect due to certain risks and uncertainties including, without limitation, the difficulty of predicting regulatory approvals, market acceptance and demand for new products, the availability of appropriate genetic content, the protection of intellectual property connected with genetic content, the impact of competitive products and any other similar or related risks and uncertainties. If any of these risks or uncertainties were to materialize, or if assumptions underlying the forward-looking statements of management were to prove incorrect, actual results of the Company could vary materially from those that are expressed or implied by these forward-looking statements.
/For further information: INVESTOR RELATIONS CONTACTS: Equicom Group Contact (Canada): James Smith, The Equicom Group, Tel.: (416) 815-0700, Fax: (416) 815-0080, Email: jsmith(at)equicomgroup.com; Euro RSCG Life NRP Contact (U.S.): Sharon Weinstein, Account Supervisor, Euro RSCG Life NRP, Tel.: (212) 845-4271, Fax: (212) 845-4260, Email: sharon.weinstein(at)eurorscg.com; To request a free copy of this organization's annual report, please go to http://www.newswire.ca and click on reports(at)cnw./
Diamond Discoveries International: Petrographic Report confirms Kimberlite on Torngat Property
VANCOUVER, British Columbia, June 28, 2004 (PRIMEZONE) -- Further to the press release dated April 19, 2004, which related to indicator mineral evaluation of dyke samples identifying the St. Pierre Dyke and Ned's Dyke as kimberlites, Diamond Discoveries International Corp. (OTCBB:DMDD) has recently received a petrographic report from Al Millar, consulting petrologist for Millar and Associates, Ottawa, Ontario with respect to three selected samples, each from a different dyke located on the Torngat Property. This report definitively confirms the presence of kimberlite rock in the samples from Ned's Dyke and St. Pierre Dyke. Petrography is the microscopic description and identification of rocks and minerals. Several suspected pipes along Ned's Dyke and St. Pierre Dyke will be drilled during the 2004 field program in order to confirm the existence of kimberlite pipes and test for diamond content.
Robert Dillman, B.Sc., DMDD's consulting geologist states, "Al Millar's report is of great importance since it confirms the presence of kimberlite and establishes the Torngat region as one of only a handful of kimberlite fields in North America. In all the fields founds so far, there is one or more kimberlites with diamonds and each of the fields has at least one kimberlite with economic or near-economic diamond grades. Until now, the diamond exploration community is under the impression that the Torngat region has only aillikite (lamprophyre) dykes. Lamprophyre is hard to sell! Millar's report also suggests that the mantle nodules contained in the kimberlite are trending towards hartzburgite which is the preferred trend for diamond."
DMDD is pleased about the confirmation of kimberlite occurrences on the property and will be focusing on these kimberlite dykes and associated suspected pipes. The Company will begin its 2004 exploration season which will commence in mid July.
ON BEHALF OF THE BOARD
"John Kowalchuk"
------------------
John Kowalchuk P.Geo., President & CEO
About Diamond Discoveries International Corp.
Diamond Discoveries International Corp. is an US exploration company with executive offices in Vancouver, B.C. Through its wholly owned subsidiary Diamond Discoveries (Canada) Inc. it controls certain mineral permits in the Torngat Mountains Peninsula, north-eastern Quebec. The Company is focused on exploring for diamonds. The Company has located more than 50 kimberlite dykes and several kimberlite pipes. This summer, they plan on actively sampling the targeted areas for diamonds both by bulk sampling and core drilling.
About Millar & Associates
Millar & Associates is a group of geologists who specialize in microscopic description of rocks and minerals. The group has an excellent reputation and is used by diamond exploration firms such as De Beers and Ashton Mining.
Forward-Looking Statement
This news release contains discussion of items that may constitute forward-looking statements within the meaning of securities laws that involve risks and uncertainties. Although the company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurances that its expectations will be achieved. Factors that could cause actual results to differ materially from expectations include the effects of general economic conditions, actions by government authorities, uncertainties associated with contract negotiations, additional financing requirements, market acceptance of the Company's products and competitive pressures. These factors and others are more fully discussed in Company filings with U.S. securities regulatory authorities.
CONTACT: Diamond Discoveries International
Mr. John Kowalchuk B.Sc. P.Geo., CEO
604-683-1368
Fax: 604-685-6905
T.F: 866-400-1368
jkowalchuk@shawcable.com
TAHERA CORPORATION CHANGES NAME TO TAHERA DIAMOND CORPORATION
June 27, 2004
Tahera shareholders at the Canadian diamond company's annual and special meeting have approved a name change from Tahera Corporation to Tahera Diamond Corporation, to accurately reflect Tahera's business as a pure diamond company.
The change of name was made effective by a Certificate of Amendment, and TDC’s common shares will commence trading on the Toronto Stock Exchange under the new name and the same trading symbol (TAH) forthwith.
In other news, R. Peter Gillin, Chairman of the company, Patrick J. Lavelle, Robert R. B. Dickson, Colin K. Benner, Jonathan Goodman, Lead Director of the company, and Andrew B. Adams were appointed as directors for the coming year.
Tahera, which has several other very prospective diamond projects in Canada's prolific Slave Craton, is focused on developing its wholly-owned Jericho Diamond Project as Canada’s next and Nunavut’s 1st diamond mine.
Tahera Corporation changes name to Tahera Diamond Corporation
TORONTO, June 25 /PRNewswire-FirstCall/ - Tahera Diamond Corporation is
pleased to announce that shareholders approved a name change from Tahera
Corporation to Tahera Diamond Corporation at the Company's annual and special
meeting held last week. The new name accurately reflects Tahera's business as
a pure diamond company.
The change of name was made effective by a Certificate of Amendment dated
June 23, 2004. Tahera Diamond Corporation common shares will commence trading
on the Toronto Stock Exchange under the new name and the same trading symbol
(TAH) on or about June 29, 2004. Share certificates showing the former name
will continue to represent the common shares of Tahera Diamond Corporation.
Shareholders holding share certificates who wish to obtain a share certificate
in the new company name may do so by surrendering their existing share
certificates to Computershare Investor Services, the Company's transfer agent,
at their offices in Toronto or Vancouver.
All of the other resolutions put forth to shareholders at Tahera Diamond
Corporation's annual meeting were approved. The following directors were
appointed for the ensuing year:
R. Peter Gillin, Chairman
Patrick J. Lavelle
Robert R. B. Dickson
Colin K. Benner
Jonathan Goodman, Lead Director
Andrew B. Adams
Mountain Province valuation looking better
2004-06-18 12:03 ET - Street Wire
by Will Purcell
De Beers Canada Corp. has updated its modelled diamond values for three key Gahcho Kue pipes in the Northwest Territories, producing some good news for its partners on the project, Mountain Province Diamonds Inc. and Camphor Ventures Inc. The Gahcho Kue diamond values increased by nearly 20 per cent over the past year, and that increases the likelihood that De Beers can make a mine work at Kennady Lake.
Investors nevertheless seemed less than enthused with the result. There was early interest in the shares of De Beers's partners following the news on Wednesday, but Mountain Province's shares closed seven cents lower at $1.75, shedding about 4 per cent of their value, while Camphor's stock struggled one cent higher, closing at 56 cents. Despite the lukewarm reaction, the prospects for the project now seem rosier.
A buoyant diamond market accounted for the hefty increases in the diamond values of the three pipes, with the Hearne body chalking up the largest increase, pegged at about 22 per cent. Early last year, De Beers had come up with a value of just $50 (U.S.) per carat for the Hearne diamonds, but that figure now stands at $61 (U.S.) per carat, thanks to the healthier state of the rough diamond industry.
The increase at Hearne is especially encouraging, as it returns much of the theoretical value that had disappeared in recent years, due to a declining rough gem market and a more conservative modelling technique used by De Beers over the past year or two.
After the first big sampling program in 1999, De Beers produced a diamond value of $71.50 (U.S.) per carat for its Hearne diamonds, but a second sampling effort in 2001 resulted in a decline to $63.50 (U.S.) per carat. That 11-per-cent drop was no big surprise however, as the rough diamond market had lost about 20 per cent of its value from a peak in the summer of 2000.
De Beers and its partners collected a new sample in 2002, coming up with signs of larger diamonds from Hearne, which inflated the hopes of speculators, who expected a big boost to the value of Hearne's diamonds. Those hopes were dashed last spring, when De Beers delivered not an increase, but a 21-per-cent decline in the value of the Hearne gems.
That lower value was partially attributed to a further decline in the general value of rough diamonds, but a majority of the decrease was apparently due to the new method of modelling the value of Hearne's diamonds.
That approach may prove to be a more accurate representation of the diamond value, but it could just as easily be unduly conservative. That will remain an unknown until the Hearne diamonds are actually mined, but the latest boost in value increases the likelihood of a Gahcho Kue mine providing the answer.
Things are even rosier at the 5034 pipe, which remains the flagship kimberlite of the project, with a current diamond value of nearly $75 (U.S.) per carat. That value handily tops a 1999 projection of $69.30 (U.S.) per carat that had been the previous best, and it exceeds the 2003 estimate of $62.70 (U.S.) per carat by about 18 per cent.
Curiously, although the modelled diamond values followed the same trend as the Hearne projections, dropping from 1999 highs to a low in 2003, the decline was significantly smaller at 5034. That should bode especially well for the project, should the De Beers estimates prove to be conservative.
The diamond value at Tuzo also managed a hefty increase, climbing to $49 (U.S.) per carat, up from a projection of $41 (U.S.) per carat that was set last year. As with 5034, the latest estimate for Tuzo is marginally higher than the levels determined after the 1999 mini-bulk test.
The increases should improve the chances of making a mine at Kennady Lake, although the process of proving, permitting and building a mine in the Northwest Territories can be an excruciatingly slow process for a notoriously impatient market. That impatience has led to investor grumbling about the seemingly slow pace set by De Beers, and the usual array of conspiracy theories have popped up, suggesting the delays are deliberate.
Those opinions come much to the chagrin of Mountain Province president, Dr. Jan Vandersande. "There is a shortage of diamonds in the world at the moment. De Beers needs diamonds, so why would they want to slow us down?" he said, adding that there were no new mines slated to start production, beyond the Snap Lake and Victor deposits." Those are not big mines," he stated.
Dr. Vandersande has a point. According to preliminary plans, a Gahcho Kue mine would produce about 3.2 million carats of diamonds per year, worth about $215-million (U.S.) annually. Meanwhile, based on De Beers's current plans and projections, the Snap Lake mine will produce about 1.5 million carats worth about $115-million (U.S.) annually, while Victor is forecast to produce about 560,000 carats, worth about $160-million (U.S.) on an annual basis.
A Gahcho Kue mine would therefore deliver more diamonds than the other two De Beers projects combined, and the dollar value would also rank at the top of the list. Furthermore, all three projects would produce gross revenues of less than $500-million (U.S.), which is just half of the estimated current shortfall in the rough diamond market.
As a result, De Beers is now in the midst of a major project study that carries a $25-million price tag. The first phase of that program is now complete, although the full report will not be finished until the middle of next year. That slow pace will likely add to the growing grumpiness of some of Mountain Province's long-term shareholders, but Dr. Vandersande believes it is an indication that De Beers believes it has a mine in the making at Kennady Lake.
De Beers is completing its investigation to a level that would be used to support future mine permitting requirements, and the study will include detailed engineering and geotechnical data that will progress far beyond the desktop studies that have previously been completed. "Based on everything De Beers is doing, it looks like we are going to be a mine," he stated.
Even the typically conservative De Beers seems in a cheery mood about its prospects at Kennady Lake. Company spokesperson, Linda Dorrington, said that a detailed environmental baseline study had commenced and would continue into the summer. She confirmed that the detailed technical investigation would continue until the middle of 2005, and the work would be taken to a level supporting permit applications, "if we decide the project proved sufficiently economic to warrant that."
Ms. Dorrington said that based on the outcome of the detailed investigation, the next steps to be taken at Gahcho Kue would then be decided. Presumably those next steps could involve laying firm plans to proceed with building a mine, but such a decision will not come quickly. "We do take a very thorough approach to everything and we will continue to do that," Ms. Dorrington stated, adding that the approach has worked for the diamond giant in the past.
The spring drilling program failed to produce much in the way of promotable news, and that may have added to the muted market reaction to the new valuations. Dr. Vandersande said that De Beers had drilled a few larger targets in the area surrounding the Kelvin Lake and Faraday Lake area, but without much success.
None of the targets, which were away from the main zone, yielded any kimberlite hits. Just a single two-metre intersection was encountered along the trend containing the series of dikes and blows that run through the two lakes, up to 12 kilometres to the northeast of Kennady Lake.
There was a bit of sparkle in that result however, as it extends the known length of the feature by another 700 metres. So far, the trend of kimberlites has been traced for about 1,500 metres.
There could be a concerted effort to delineate the series of kimberlites in the area over the next few years, and the most opportune time might come when the main Gahcho Kue project is being nudged though the permitting process. Dr. Vandersande said that he thought there would be a concerted effort to delineate the features in the future, but the current focus was adding to the resource base in a more immediate way.
With a bit of luck, such an addition could come later this year. De Beers and its partners have identified a narrow and sharp kimberlite indicator mineral train in the area roughly five kilometres to the northeast of Kennady Lake, and Dr. Vandersande said that the swath appears to have come from a pipe, not a dike.
There was a ground gravity target near the head of the train that was drilled by De Beers this spring, but the effort failed to produce a kimberlite hit. Nevertheless, there are strong indications that a kimberlite pipe may be in the immediate vicinity of that failure.
Dr. Vandersande said that there were no indicators found in the area farther to the east, which would apparently provide a limited area to conduct a new search. As a result, the partners are expected to go back this summer to check out the area surrounding the lake, looking for signs of a land-based pipe. As well, more drilling seems likely for next spring, as kimberlites often elude the first drilling attempts.
For instance, the first drill hole into the A-154 target at Diavik managed to hit the narrow area of granite between the two incredibly rich sister pipes. As a result, continued drilling in the area could still give the Gahcho Kue project a significant boost.
Mountain Province traded as high as $3 last fall and came close to that mark again in mid-February, but interest has been flagging of late, although things remain much rosier than last year, when a share could be had for 60 cents.
The stock closed eight cents higher on Thursday, at $1.83.
Response Biomedical Begins Phase II Development of a Biotech Trait Detection Test for Grain
Thursday June 24, 9:00 am ET
VANCOUVER, June 24 /PRNewswire-FirstCall/ - Response Biomedical Corp. (TSX-V: RBM - News), today announced the Company has initiated Phase II of an R&D project toward the development of a rapid quantitative RAMP® Biotech Test. This project, funded by a leading international biotechnology company, is designed to identify biotech traits in harvested grain.
"Having successfully completed a preliminary feasibility program, we are expediting the development of the first RAMP Test for review beginning this summer," states Bill Radvak, President and CEO. "As the Company's lead entree into the agricultural food and grain testing market, recent international regulatory and policy reform present an exciting and timely opportunity for RAMP in rapid on-site testing for biotechnology traits, initially in soy."
"Conventional testing of biotechnology crops includes both lab-based equipment and early generation qualitative immunoassay tests. Since RAMP is an entirely new class of diagnostic system that provides lab-quality information in a rapid portable platform, we are confident RAMP can become the industry standard for quantifying seeds and crops improved by biotechnology," adds Radvak. "This test also compliments our existing RAMP product lines and other product concepts currently under development."
About Response Biomedical:
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Response Biomedical develops, manufactures and markets rapid on-site RAMP tests for medical and environmental applications providing reliable information in minutes, anywhere, every time. RAMP represents an entirely new class of diagnostic, with the potential to be adapted to more than 250 medical and non-medical tests currently performed in laboratories. The RAMP System consists of a portable fluorescent Reader and single-use, disposable Test Cartridges. RAMP tests are commercially available for clinical applications such as the early detection of heart attack, environmental detection of West Nile virus, and biodefense applications including the rapid on-site detection of anthrax, smallpox, ricin and botulinum toxin.
Response Biomedical is a publicly traded company, listed on the TSX Venture Exchange under the trading symbol "RBM". For further information, please visit the Company's website at www.responsebio.com.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of the information contained herein. The statements made in this press release may contain certain forward-looking statements that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations.
Contact:
Don Bradley
Director, Corporate Communications
Response Biomedical Corp.
Tel (604) 681-4101 ext. 202
Email: dbradley@responsebio.com
Jonathan Fassberg
President
The Trout Group LLC
Tel: (212) 477-9007 ext. 16
Goldcorp teams with Pele Mountain
6/23/2004
Articles in related categories
Gold & Silver
Less than two months after having De Beers pull out as a partner from the Festival diamond project near Wawa, Ont., Pele Mountain Resources (GEM-V) has found a suprising new partner not known for dabbling in diamonds: Goldcorp (G-T).
Pele has struck preliminary deals with Goldcorp on two of the junior's 100%-owned properties: Festival; and the Ardeen gold project situated 110 km west of Thunder Bay, just south of the Trans-Canada Highway.
At Festival, Goldcorp can earn a half interest by spending $2 million by the end of 2006. It can pick up an additional 10% by shelling out another $1 million before 2008.
De Beers had only been involved as a partner at Festival since July of last year, having been drawn to the Wawa area by its unusual near-surface, volcanic-hosted (i.e. non-kimberlitic) diamond deposits that hold some potential for cheap bulk-mining methods.
Pele reports that De Beers did have time to complete a review of the Festival property which "concluded that De Beers globally is not interested in the deposit type found to date within the Festival property."
De Beers' work confirmed that Festival's diamonds were derived from a peridotitic mantle within the diamond stability field at depths of at least 250 km, and are hosted within volcanic rocks that were deposited on the surface 2.7 billion years ago.
Futhermore, the deposits sampled and modelled by De Beers suggest a macro-diamond grade of 10 carats per hundred tonnes or less at a cut-off of 1.5 mm.
De Beers is still, for the moment, partnered with the other junior most actively looking for diamonds in the Wawa camp: Wayne O'Connor's Band-Ore Resources (BAN-T).
At Pele's Ardeen gold project, in similar terms, Goldcorp can earn a 50% interest by spending $3 million before 2008, and can get another 10% with a further $1.5-million expenditure before 2009.
Ardeen was northern Ontario's first gold mine, and it produced 30,000 oz. gold and 175,000 oz. silver during the early 1930s.
In recent years, Pele has completed more than 12,000 metres of diamond drilling on the property and outlined gold mineralization in zones near the mine's existing shaft, which was sunk to the 366-metre level.
Pele and Goldcorp expect to finalize the two option agreements by the end of July.
CHINA DIAMOND APPOINTS 3 TO THE BOARD OF DIRECTORS
June 23, 2004
http://www.tacyltd.com/Research_Materials_Full.asp?id=53813