Foundation Project DRC

DIAMOND GEOLOGY & EXPLORATION

DIAMOND EXPLORATION AND MINING IN CONTEXT

Diamond Genesis

  • Form on cratons, old parts of the crust which plunge deep into the mantle.
  • Vertical volcanic intrusions called pipes which carry diamonds and indicator minerals up from the deep mantle (150-200 km down).
  • Result of explosive vent volcanism from very deep mantle-derived sources.
  • Within 1.5-2 km (0.93-1.24 mi) of the surface, highly pressured magma explodes upwards and expands to form a conical to cylindrical volcanic pipe – erupts on the surface.
  • Kimberlite dykes and sills-thin (1-4 m).
  • Pipes range in diameter from about 50 m to 1.5 km.
  • Two distinct varieties of kimberlite volcanics, commonly called Group 1 and 2 types.
  • Diamonds also sourced by lamproites, which are related to kimberlites.

Kimberlitic Indicator Minerals (KIMs)

  • Kimberlites are peculiar igneous/volcanic rocks that formed under high pressure and temperature within the mantle.
  • Similar conditions for the formation of diamond.
  • KIMs: Pyrope garnets rich in chromium and ilmenite and chromium diopside, chromium spinels.
  • KIMs are absent from most other igneous/volcanic rocks – indicators for kimberlites.
  • KIMs are sought and found in stream sediments (alluvium) and in modern soils as part of the diamond exploration process.
  • KIMs may indicate the presence of a kimberlite within the erosional watershed that produced the alluvium.
Mining Companies (2019)
ALROSA43.0m cts
DeBeers30.8m cts (75% from Debswana)
Rio Tinto17.0m cts ($619m)
Dominion6.0m cts
Petra Diamonds3.5m cts
Gem Diamonds120 000 cts (~$1 700/ct)
Lucara Diamonds433 000 carats  (~$468/ct)
Lucapa Diamonds49 100 cts  (~$1 127/ct)
AGD4.5m, ~$300m (Grib pipe – $65/ct)

Typical Kimberlite Product Mix

World ave. diamond size: 0.30 carats (30 points)

  • Industrial goods: 30%
  • Indian goods: 50%
  • Gemstones: 20%
  • 20% yields > 80% of value

 

Alluvial Deposits

  • RSA West Coast alluvials: 95% gem
  • RSA Orange River alluvials: 85% gem
 

2019

2020

2021

Country

Cts (m)

Ave  $/Ct

Cts (m)

Ave $/Ct

Cts (m)

Ave $/Ct

Russia

43.0

90

31.2

73

39.1

67.6

Botswana

23.2

145

16.9

149

22.9

203.6

Canada

23.0

85

13.1

71

17.6

85.8

DRC

16.0

9

12.7

7

14.1

11.9

Australia*

11.5

13

10.9

11

S Africa

9.5

124

8.5

113

9.7

140

Angola

8.4

146

7.7

131

8.7

186

Zimbabwe

2.5

50

2.7

57

4.2

159

Namibia

1.7

460

1.5

465

1.8

467

Lesotho

1.2

291

0.481

543

0.339

758

Other

2.0

100

1.4

95

1.6

98

Total

142 m

$92/Ct

107 m

$86/Ct

120

116/Ct

 

28.4t

 

21.4t

(25% dec)

 

24.0t

 

Rough $ Value

 

~$13bn

 

~$9.2bn

120mn

~$14bn

Retail $ Value

 

~$65bn

 

$64bn

 

~$82bn