Thursday, May 7, 2009

Letseng Mine Produces 18th Largest Diamond

Lesotho_mapLetseng Mine in Lesotho, operated by London-based Gem Diamonds Limited, was the source of a recently announced 494-carat diamond discovery, which makes it the 18th largest diamond ever found. The newly recovered diamond has not yet been named, but that will probably occur after the stone is examined in Antwerp to determine its quality.

The Letseng Mine has become famous for its large diamonds, in particular three of the world’s twenty largest diamonds. A 603-carat diamond, named Lesotho Promise, was recovered from the Letseng Mine In August of last year and is currently the 15th largest rough diamond ever found. The Lesotho Promise sold in October 2006 for $12.4 million. The average value per carat of production from the Letseng Mine is nearly 20 times the industry production average.

The Letseng Mine includes production from two kimberlites (main and satellite), that are estimated to contain $4.7 billion in recoverable resources. Gem Diamonds Ltd. operates this exceptionally productive diamond mine and has 70 percent ownership with the Kingdom of Lesotho owning the remaining 30 percent.

Gem Diamonds Ltd. has aggressively purchased exiting diamond mines and then rehabilitates the operations. Earlier this year, the company bought the Gope deposit in Botswana and BDI Mining in Indonesia. It still has an open bid for Australian-based Kimberley Diamond Company and owns projects in Congo, Angola, and the Central African Republic. Almost all of the company’s revenues come from the Letseng Mine, purchased in June 2006, which is one of only a few revenue-producing projects thus far.

The newly discovered 494-carat diamond is insured for $15 million until its true value can be determined. The diamond will be sold in Antwerp, using the tender sales approach, since that marketing strategy was so successful for the Lesotho Promise a year ago.

The Letseng Mine certainly makes the headlines with its large diamond discoveries and Gem Diamonds Ltd. hopes it will be the cornerstone of its business plan to become one of the leading diamond producing companies in the world.

Check out other articles about the Letseng Mine and its exceptional diamonds.

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