Diamonds & DiamondGrading

5
Exploring for Diamonds
 Table of Contents

Subject Page

The Exploration Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Primary and Secondary Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Finding Diamonds: Step by Step . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Deciding Where to Look . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Narrowing the Search . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Testing for Telltale Minerals . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Locating Pipes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Testing for Diamond Content . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Analyzing a Deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Key Concepts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Key Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
©
©2002 The Gemological Institute of America
All rights reserved: Protected under the Berne Convention.
No part of this work may be copied, reproduced, transferred, or
transmitted in any form or by any means whatsoever without the
express written permission of GIA.
Printed in the United States.
Reprinted 2008

Cover photos: (clockwise from left) Ashton Mining Limited, Diamond Trading Company, Brian Stevenson, Hans Westerling. Back cover: Glodiam Israel Ltd.

Facing page: Today, many exploration teams use advanced technology to search for possible diamond deposits.
EXPLORING FOR DIAMONDS
In Assignment 4, you learned how diamonds form, and you followed them
from the earth’s depths to its surface. This assignment begins where that
assignment left off. You’ll find out what happens after they’ve made that
journey. You’ll learn about the kinds of deposits that contain diamonds
and about modern diamond exploration methods. You’ll also learn how
prospectors and exploration geologists, with primitive as well as modern
tools, have unearthed diamonds all over the world.
You might wonder why geologists and mining companies still spend
time and money looking for diamond deposits. After all, productive diamond
mines exist on almost every continent. But don’t forget that diamonds are
a product of nature. Like every other natural product, diamond supplies
are limited. Mines that were once profitable are now abandoned. Even
newer mines will eventually stop producing: They’ll need to be replaced
in order to maintain the world’s diamond supplies.
Another major motivation for seeking new sources is the expansion of
the global diamond market. In the early 1990s, the US was the center of

©2002 GIA. All rights reserved. 1

 DIAMONDS AND DIAMOND GRADING 5

Peter Johnson/Corbis

The town of Kolmonskop, Namibia, was once a thriving diamond mining area. The
mines were abandoned when they stopped producing enough rough to make the
operation profitable. Today, sand dunes have reclaimed the area.

Ke y C o n c e p t s
Growing diamond demand helps
motivate the search for new diamond
sources.

Brian Stevenson

Modern technology and affordable labor have made it possible to cut smaller
diamonds profitably. This adds to the demand for diamonds similar to the output
shown here.

demand for diamond jewelry, with demand also expanding to other parts
of the world. This opened a whole new marketing arena to the diamond
trade and created the need for more diamonds. And, while the US market
still dominates diamond sales, international trade in diamonds continues
to increase.

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 EXPLORING FOR DIAMONDS

The US is the diamond industry’s largest market, but demand is also high in other
parts of the world. Japan is one of the largest diamond jewelry markets outside the
US. This store is located in Tokyo.

Another factor is that affordable labor and new technologies are now
available for cutting smaller, lower-quality diamonds. This means that
there will be a steady demand for diamonds that at one time were consid-
ered unprofitable to cut. This trend is bound to continue as the market for
more-affordable diamond jewelry expands.

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 DIAMONDS AND DIAMOND GRADING 5

Gail Mooney/Corbis

Looking at the display of diamonds in a store window, most people have a hard time thinking of diamonds
as rare. But enormous amounts of time and money are spent finding and mining them. Tens of thousands
of tons of earth had to be processed to yield just the diamonds in this window.

THE EXPLORATION PROCESS

■ What factors determine the time and expense of diamond
exploration?
■ What are the different types of diamond deposits?
■ How do geologists locate diamond sources?
■ What tests determine a mine’s potential yield?
Ke y C o n c e p t s
It takes many years and millions of Exploring for diamonds is a long, difficult, and expensive process. In the
dollars to develop a diamond mine. 1990s, for example, De Beers budgeted between $70 million and $90 mil-
lion a year exclusively for diamond exploration. And the entire process
from beginning a search to unearthing the first diamonds can take many
years. The first years are devoted to locating a source and determining
if there are enough diamonds of good enough quality to justify mine
construction. Then, if the decision is made to proceed, it can take several
years to build the mine and begin operations.
The Argyle mine in Australia is a good illustration of the time and
money it takes to start mining diamonds. It took eight years of exploration
and $12 million to find the lamproite source. In diamond exploration
terms, that’s not extraordinary. But then it cost an additional $420 million
over five years to develop the mine and begin diamond production.

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 EXPLORING FOR DIAMONDS

The geography and climate of an area can make a big difference to

exploration geologists and dictate the methods they use. The frozen soils
of Canada and Russia are much more resistant to ground prospecting
techniques than the plains of South Africa. The hot, wet South American
climate offers challenges of its own.
The political conditions and environmental regulations of the country
in which the potential mine is located can also influence the timing of
exploration and mine construction, as well as a mine’s production limits.
Diamonds come from a variety of countries and cultures, some with
unstable governments and shaky political situations.
Environmental concerns are becoming much more important than they
were in the early days of the industry. In Canada, for example, diamond-
mining companies must include protection for local wildlife and vegetation
in their operating plans.
Exploration techniques have come a long way since the days of the
pick and shovel, but there’s still no foolproof way to spot a source that’s
guaranteed to yield a quantity of diamonds worth mining. Just because
diamonds are deposited at or near the surface doesn’t mean they’re easy
to find. As you absorb the information that follows, you’ll learn to
appreciate the knowledge, technical skill, and hard work that deliver
those glittering diamonds to the jeweler’s showcase.

Tim Atherton/PictureDesk International

Canada’s frozen tundra and vast expanses add enormous challenges to the finding and mining of
diamonds. This is a diamond exploration camp in the country’s Northwest Territories.

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DIAMONDS AND DIAMOND GRADING 5

Canada’s Environmental Challenges

Canada’s Ekati mine is one of the
world’s newest diamond mines.
It’s also a good illustration of the
increasingly complex process of
establishing a modern diamond
mine. Finding economic diamond
deposits in Canada’s Northwest
Territories was difficult enough,
but it was only the first hurdle in a
long series of challenges.
The Ekati mine is located in a
remote arctic tundra region. It’s
approximately 186 miles (300
kilometers) from the closest sup-
ply center, Yellowknife, and about
124 miles (200 kilometers) south
of the Arctic Circle. On a map, the
Tim Atherton/PictureDesk International area appears to be in the middle of
Concern for local inhabitants is an nowhere. However, a map doesn’t
important part of the planning pro- convey the social, economic, and
cess for Canadian mining projects.
The companies must try to disturb
environmental complexity of min-
hunting and fishing grounds as little ing in this remote area.
as possible. They also involve the Several groups of aboriginal
local people in the technical and
labor aspects of the project. people use the area for hunting
and fishing. It’s also home to
many large and small mammals,
birds, and several species of fish.
The diamond deposit lies within
the migration path of a large
caribou herd.
Everyone was aware that activ-
ities associated with a modern
mining operation—explosive
charge detonation, large-scale
earth removal, heavy equipment
activity, waste material storage,
and water consumption—could
prove harmful to the ecosystem.
Before the Canadian govern-
ment would issue permits to
This selection of rough and cut
develop the property, the mining
diamonds is typical of the Ekati company had to prove it would
mine’s output. not endanger the region’s natural

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 EXPLORING FOR DIAMONDS

Tim Atherton/PictureDesk International

Government regulations require mining companies in Canada to take special care of the environment. In
the area around the Ekati mine, many of the kimberlites are located under lakes. Before mining could
begin, the company had to dig a channel and move fish from the lake being mined to another one nearby.

resources. This meant they had to perform a lengthy and complete environmental impact
study. That study had to consider the needs of the inhabitants, the animal and plant popu-
lations, and air and water quality.
When the study was completed, the final report detailed the company’s commitment
to protect the natural environment as much as possible. It dealt with such wide-ranging
issues as water quality and sewage treatment, fish and wildlife studies, processed kim-
berlite management, reclamation and vegetation research, and protection of archeological
sites.
The mining company also entered into an agreement with the government of the
Northwest Territories. The company agreed to provide job opportunities for the residents,
while the government promised to implement programs and services to help residents
take advantage of those job opportunities.

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 DIAMONDS AND DIAMOND GRADING 5

primary source

alluvial deposit

Peter Johnston/GIA

Alluvial deposits form when pipes erode and their diamond rough washes down into rivers or streams.
From there, the currents might carry the rough to the ocean to form marine deposits.

PRIMARY AND SECONDARY DEPOSITS

Primary deposit—Gems found in In Assignment 4, you learned how diamonds form from carbon under
the rock that carried them to the extreme temperature and pressure conditions. After waiting deep under-
surface. ground for millions—sometimes billions—of years, they’re carried
Secondary deposit—Gems found rapidly up to the surface by kimberlite or lamproite. At the surface, they
away from their primary source. burst through the crust and settle back into deep deposits called pipes.
Geologists call diamonds in kimberlite or lamproite pipes primary
Alluvial deposit—A deposit where deposits.
gems are eroded from their Diamonds are also found outside their pipes, in secondary deposits.
source rock, then transported
The host rock itself is not very stable. Once it reaches the earth’s sur-
away from the source and further
face, sunlight, heat and cold, wind and rain, and other environmental
concentrated.
forces break it down relatively quickly. When that happens it leaves a
Marine deposit—Secondary diamond-bearing surface layer of broken and weathered kimberlite or
diamond deposit carried by lamproite.
rivers or streams to the ocean When a pipe erodes, its diamonds might remain nearby, or they might
floor or shoreline. spill into neighboring rivers and streams. As they’re carried along, the
diamonds are caught in small whirlpools. Diamonds are heavy, so they
sink to the bottom. Deposits in rivers and streams are called alluvial
(uh-LOO-vee-ul) deposits. (Alluvial deposits can also exist in places—
now dry—where rivers or streams once existed.)

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 EXPLORING FOR DIAMONDS

If the river currents are strong enough, they might carry diamonds all Ke y C o n c e p t s
the way to the sea. There, ocean currents deposit them offshore or wash Modern diamond exploration involves
them back onto the beach. These are called marine deposits.
careful planning and sophisticated
Alluvial and marine deposits are usually much richer in diamonds than
primary deposits. That’s because the host rock and lighter rock materials
equipment.
erode and wash away, leaving concentrations of diamonds and heavier
minerals. Some quality-sorting takes place, too: The water’s rolling and
tumbling action breaks down most of the heavily included diamonds, so
only higher-quality crystals survive.

FINDING DIAMONDS: STEP BY STEP

For at least 2,000 years, alluvials were the only diamonds known to exist.
Many of the earliest diamonds were found by accident and picked up by
hand. The oldest and most basic prospecting method—still practiced
today in many places—is to search the beds of past or present streams
and rivers.
Eventually, the study of alluvial deposits led to discovery of the pipes
associated with them. Once prospectors learned how to follow alluvial
trails, they were able to begin mining diamonds at their sources. But even
after finding primary sources, most early miners stopped digging when
they reached hard rock. They didn’t know that a great source of diamonds
lay just a little farther underground.
Today, diamond exploration methods have improved. Geologists know
more about the earth’s crust and the conditions needed to produce kimberlite

A combination of modern technology and traditional methods helps exploration geologists find diamond
deposits. This team is looking for alluvial deposits in an African riverbed using pans, buckets, and a Global
Positioning System that tracks their location using satellite technology.

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 DIAMONDS AND DIAMOND GRADING 5

River Sorting
Many years ago, De Beers
researchers conducted an
experiment to show why there
are higher percentages of gem
crystals in alluvial deposits
than in pipes. They filled a
large cylinder with 265 pounds
of steel balls, some gravel,
water, and natural industrial
diamonds. Then they rotated
the cylinder to simulate the
tumbling that would take place
in a riverbed. After seven hours
the industrial diamonds were
reduced to a fine powder.
Then they repeated the
Thomas Hunn experiment with gem-quality
Rough diamonds from alluvial diamonds. After 950 hours of
sources—like these from Sierra tumbling, the gem diamonds
Leone—are typically high quality. were still mostly whole: They
Low-quality diamonds can’t survive
the stresses of alluvial transport.
had lost only one one-hundredth
of one percent (0.01 percent) of
their weight!

Ke y C o n c e p t s and lamproite pipes, so the search for diamonds is more systematic—and

For a mine to be successful, the pro- more rewarding. It makes use of a wide range of new technologies,
including aerial surveys, radar, electromagnetic testing, and more.
jected value of its diamonds must be
In spite of all this, it’s common for mining companies to locate
more than the cost of mining them. diamond deposits, but leave them in the ground. In fact, it’s far more
common than mining them. There are fewer than 1,000 deposits of
diamond-bearing rock worldwide, but only a small percentage of them—
fewer than 10 percent—have been mined.
Economics is the basic reason for this. For a mine to be successful, the
projected value of the mine’s diamonds must be more than the cost of
mining them. That’s why it takes an enormous amount of time, work, and
expense to analyze a deposit.
To determine a mine’s potential, mining companies evaluate three
factors:

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 EXPLORING FOR DIAMONDS

search pattern

magnetic
surveying
instrument

Peter Johnston/GIA

Aerial magnetic surveys can detect the possible presence of kimberlite pipes even before ground
exploration begins. To be sure they cover the area thoroughly, the team maps out a grid of back-and-forth
passes for the plane to follow.

• Size of the deposit. When it comes to diamond deposits, bigger is better: Ore grade—Concentration of
Larger pipes are likely to contain more diamonds than smaller pipes. diamond in a potentially mineable
deposit.
• Concentration of rough diamonds within a pipe. This is called ore
grade, and for diamonds, it’s reported as the number of carats per 100
tons of surrounding material, called ore.
• Size and quality of the rough diamonds. The mining company must
estimate the average dollars-per-carat value of diamonds recovered.
Then they compare this estimate with the projected expense of estab-
lishing and operating the mine.
Exploration teams use different search methods depending on an area’s
geography, the types of deposits they expect to find, and other factors.
Most diamond exploration projects follow these general steps: deciding
where to look, narrowing the search, testing for telltale minerals, locating
pipes, and testing the pipes for diamond content.

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 DIAMONDS AND DIAMOND GRADING 5

DECIDING WHERE TO LOOK

The first and most important step is area selection. It’s important to focus the
search early, because diamondiferous (diamond-bearing) pipes occupy an
extremely small percentage of the earth’s crust. In Assignment 4, you learned
about cratons, the stable rock formations that make up the oldest parts of the
crust. The oldest, thickest, and most stable sections of the cratons—some-
times called archons—are the most likely locations for diamond deposits.
When scientists search for archons, they use sensitive instruments that
measure earthquake activity. The archon is denser than its surrounding
rock, so when a seismic wave strikes it, the wave starts moving faster.
Peter Johnson When the instruments detect rapid wave movement, surveyors can be
Conducting an aerial magnetic survey pretty sure they’ve found an archon.
usually involves a pilot and a technician.
These specialists, and the equipment
they’re using, are expensive. They add NARROWING THE SEARCH
to the high cost of diamond exploration
and mining. After determining the presence of an underlying archon, researchers can
narrow the search even more by combining structural, geophysical, and
geological data. They measure density variations in the area to detect kim-
berlite, which has more gravitational pull than its surrounding rock. They
look for weakness zones, or faults, that might have provided “roadways”
for kimberlite’s passage from the earth’s depths. They might also use radar
and infrared photography to create a picture of the surface.
Ke y C o n c e p t s Another modern exploration tool is remote sensing: the collection of
Diamond exploration specialists start electromagnetic waves that are sent from satellites and bounced off the
earth’s surface. Remote sensing detects variations in the layers of the crust
by looking for the oldest parts of the and also indicates the type of rock that’s present. The process can’t pin-
earth’s crust. point exact pipe locations, but it can give important information about the
mineral composition of an area.

Hans Westerling

An aerial magnetic survey map shows certain pattern variations that indicate the
possible presence of kimberlites. Modern advances like this have assisted in the
discovery of diamond deposits in previously unexplored areas.

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 EXPLORING FOR DIAMONDS

Alluvial Prospecting
Secondary deposits have always
been easier to find than primary
ones. That’s because they’re
above ground and often spread
over large areas. Alluvial dia-
monds are found in lakes and
rivers, in shoreline marine
deposits, even in dried-up water-
ways. In the late twentieth cen-
tury, the focus turned to marine
deposits, which seem destined to
supply huge quantities of as-yet-
undiscovered diamonds.
Alluvial exploration makes
use of several modern methods,
including aerial photography,
satellite imaging, and radar, to
detect potential alluvial sites.
Field mapping and soil sampling
are more traditional, down-to-
earth methods. In offshore
locations, giant pumps dredge
up sediments from the ocean
bottom for testing.
Since 1960, the discovery of
major pipes in Russia, Botswana,
and Australia has decreased the
overall percentage of alluvial
diamonds in the industry. In Many alluvial prospectors still use simple
1960, more than 80 percent tools to locate diamonds. The dark “eye”
(by weight) of the world’s dia- in the center of the sieved gravel con-
tains heavy minerals that might signal
monds were alluvials. By 1990, the presence of diamonds.
the proportion had decreased to
only about 25 percent. Nevertheless, because alluvial deposits gen- Ke y C o n c e p t s
erally have higher proportions of gem-quality diamonds, they’re still
Most diamonds mined today come
significant.
from pipes.

A geophysical survey involves exploration around a target area, from

the air and on the ground. It gives an indication of the area’s terrain and
can detect a cluster of pipes. Surveys from airplanes can spot shadows and
contours that would be invisible to geologists on the ground. In Canada,
for example, an aerial explorer saw a round shadow at the bottom of a lake
that turned out to be the top of a diamond-bearing pipe.

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 DIAMONDS AND DIAMOND GRADING 5

Hans Westerling

Sometimes hand sorting is the only effective way to check for indicator minerals.
The human eye can detect subtle shapes and colors that an automated process
would miss.

Herbert Lang

Termite mounds, like this one in Zaire, This collection of indicator minerals from the Ekati mine in Canada told the explo-
can sometimes help in the search for ration company that it was close to the source pipe.
diamonds. While digging their tunnels,
the termites carry underground minerals
to the surface. Geologists examining
mounds like this have found diamond
indicator minerals in them, leading to
the discovery of diamond pipes. TESTING FOR TELLTALE MINERALS
To focus their search more precisely, geologists look for certain miner-
als, called indicator minerals, that are usually present in and around
diamondiferous deposits. Mineral sampling is one of the most important
steps in the search for diamonds. Chemical and physical tests can determine
a mineral’s age, how far it is from its source, and how it got there. In order
to save time and money at this stage, geologists try to test as wide an area
as possible with as few samples as possible.

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 EXPLORING FOR DIAMONDS

Hans Westerling

Electromagnetic surveys can be done on foot as well as from the air. This team is
surveying an area that was identified by previous tests as a possible diamond pipe
location.

Common indicator minerals in kimberlite and lamproite include red Indicator minerals—Minerals
and orange garnet, black spinel, and several others. Tiny diamonds in the formed together with diamonds at
samples are especially helpful because they survived for a long time in great depths and brought to the
the geological environment, and their presence indicates that the source surface by the same kimberlites
deposit is probably nearby. or lamproites.

LOCATING PIPES
As the search narrows, there are a couple of high-technology procedures
for locating pipes. Electrodes inserted into the ground can measure the
electrical resistance of the surrounding rock and define the outline of a
pipe. Aerial magnetic surveys are also helpful. Both kimberlite and
lamproite contain high levels of iron, so they’re more magnetic than the
rocks around them.
Actual ground exploration—the search for physical signs of kimberlite
or lamproite—starts after a target area is chosen. This is a difficult stage,
since kimberlites and lamproites weather easily and leave little trace of their
presence on the surface. To succeed, the geologist must use every tool
available—sampling, aerial photography, geologic mapping, geochemistry,
and just plain gut instinct and experience.

TESTING FOR DIAMOND CONTENT

After the search for suitable geography, indicator minerals, and the presence
of potentially diamondiferous host rock, geologists begin testing for the
actual presence of diamond. The testing requires increasingly larger
samples, which are more expensive and more difficult to obtain and process.
This is a critical stage that makes the difference between continuing the
exploration and abandoning a project.

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 DIAMONDS AND DIAMOND GRADING 5

Ground samples are bagged and care-

fully labeled to identify the region they
came from. Any diamonds or indicator
minerals in these samples will help
geologists focus their search in more
specific areas.
Both by Hans Westerling

Part of the long, difficult, and expensive process of locating diamond-bearing pipes
is ground exploration. This includes hand-screening gravels for the actual presence
of diamond.

There are three levels to sampling for diamond. The first is microdiamond
testing, which looks for the presence of tiny diamonds in the 0.2 mm to 1.0
mm range. Samples at this stage are hand sorted under a microscope.
If the results of the first stage of testing are promising, the next step is
diamond character sampling. A mining company might process up to
500 tons of earth for an indication of the sort of diamonds present. While
it won’t give an exact picture of what’s in a deposit, it will give a general
idea of diamond size, shape, clarity, and color, as well as the deposit’s
ore grade. Usually, it’s necessary to take several character samples from
one pipe.
The last stage is bulk sampling. It’s similar to character sampling, but
on a much larger scale. Between 5,000 tons and 10,000 tons of earth are
Maha Tannous/GIA needed for processing. The samples are crushed, scrubbed, and sized.
This group of indicator minerals and tiny Then, gravity sorting is used to extract the diamonds for study. Gravity
diamonds is an excellent sign that a
sorting involves separating lighter materials out of the test samples until
diamond deposit is nearby.
the diamonds are finally all that’s left. A parcel of about 2,000 cts. is
needed for accurate mine evaluation.
By the time the bulk sampling stage is reached, operations on site are the
same as if a small mine were functioning. In bulk sampling, as in other
stages of exploration, major decisions are based on a relatively small amount
of information. By the time they finish bulk sampling, the mining company
has made decisions that will affect the economy of an area for years to
come. For that reason, the company must be knowledgeable about local
geology and mineralogy as well as environmental and economic issues.

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 EXPLORING FOR DIAMONDS

Staff geologists for a diamond mining company examine drill-core samples taken
from a kimberlite deposit. They have to study them carefully to determine if there are
enough diamonds to make mining worthwhile.

ANALYZING A DEPOSIT
A diamond mining company analyzes thousands of tons of rock to deter- Microdiamond testing—Screening
mine the contents of a newly discovered pipe. The grading process at this for the presence of tiny diamonds
stage is very different from the grading process for finished diamonds. in a sample.
Unlike jewelers, miners don’t talk in terms of the Four Cs. But all four of
these quality indicators do help them decide whether or not to dig. Character sampling—Testing for
the size, shape, clarity, and color
As a general rule, bigger is better. Rough stones of at least 0.50 ct. have of the diamonds in a deposit.
a positive influence on the decision to develop the mine. Stones with bet-
ter potential clarity and rare colors are important factors, too. But the most Bulk sampling—Large-scale
important factor is their potential as finished diamonds. At this stage of character sampling.
the process, rough diamonds are classified as either cuttable or industrial.
Cuttable diamonds include all those with good enough size, shape, clari- Gravity sorting—Separating
ty, and color to be polished and used in jewelry. The rest are considered heavier materials (diamonds)
industrial diamonds. They probably won’t find their way into jewelry, but from a test sample.
industry has many uses for diamond’s extreme hardness in tools, drills,
Cuttable rough—Diamond rough
abrasives, and more.
with good enough size, shape,
According to worldwide estimates, cuttable stones can have a per-carat clarity, and color to produce a
value 100 times that of industrial diamonds. That’s why cuttability has a polished stone suitable for use in
tremendous impact on the decision to proceed with a mining operation. jewelry.
By the time a mining company reaches this point in its evaluation of a
potential mine, it has excavated, processed, and analyzed a small mountain Industrial rough—Diamond rough
suitable for use in tools, drills,
of rock. And this is just the beginning of the time and expense involved. De
abrasives, and other industrial
Beers spent $400 million just to bring South Africa’s Venetia mine into pro-
applications.
duction. And, as you’ve learned, the Argyle mine in Australia took over 13
years and more than $430 million to develop and get to the production stage.

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 DIAMONDS AND DIAMOND GRADING 5

These rough diamonds are from a bulk sample taken from Australia’s Merlin mines
in 1995. Studying the size, number, and quality of diamonds in a bulk sample can
give a good indication of a pipe’s diamond content and economic value.

Ke y C o n c e p t s But time and money aren’t the only factors that influence the decision
A mining company must consider a to develop a mine. The deposit’s location is a key concern. A deposit that’s
close to a city or town is more economical to mine than one that’s in a
potential mine’s location, climate, remote location. A town can provide housing, services, and stores for
and political conditions along with its miners, as well as electricity, water, and communication lines for the mine
content. itself. For a deposit located in a remote area, the mining company has to
supply these basic services and resources.
Climate is also important. It’s more expensive to operate a mine in
Canada’s Northwest Territories or Botswana’s Kalahari desert than in the
Cape Province of South Africa, where the climate is more temperate.
The political conditions in a country are also a factor. Most mining
companies are reluctant to spend millions of dollars to develop a mine in a
country where a coup, revolution, or war would threaten their investment.
Diamond exploration might seem a long way off from your place in the
diamond industry, but what you’ve learned about it can add to your appre-
ciation of the diamonds you see every day. Exploration teams are facing
hardships and challenges all over the world to ensure that the world’s
supply of diamonds lasts well into the future.
Once a deposit is found and the exploration geologists determine that
it contains enough diamonds to be economically rewarding, the mining
technicians take over. In the next assignment, you’ll learn that mining
techniques vary widely, depending on the type of deposit. You’ll also learn
about the giant operations that exist all over the world to extract diamonds
from the ground.

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 EXPLORING FOR DIAMONDS

Tim Atherton/PictureDesk International

The Snap Lake project in the Northwest Territories of Canada is a good example of how remote and
isolated most diamond mines are. The mining company has to import personnel, materials, and services
at great cost.

Peter Johnson

Extreme climate and other environmental conditions add to the expense and complexity of diamond mining.
This is the Mir mine in Siberia. It was forced to close down because of harsh conditions that made mining
dangerous and extremely expensive.

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DIAMONDS AND DIAMOND GRADING 5

A Diamond Mine’s Ups and Downs

The hard work and high cost of diamond explo-
ration doesn’t always lead to a long-term, con-
stantly productive diamond mine. The Kelsey
Lake mine in Colorado is a good example.
Kelsey Lake is located northwest of Fort
Collins, Colorado, and just south of the Wyoming
border, in the US. Diamonds first hinted at their
presence there in 1975. Mineralogists from the
US Geological Survey were studying limestone
formations in the area. They knew the lime-
stone contained kimberlite, but didn’t suspect
that it contained diamonds until they started
slicing thin sections for study. The samples
damaged the carborundum wheel they were
using. The mineralogists discovered that the
Thomas Hunn kimberlite contained tiny diamonds less than
This is one of Kelsey Lake’s trea- 1 mm in size.
sures: a 28.3-ct. diamond crystal.
Economics caused Kelsey Lake to At first, large corporations supplied financing
and equipment to support the search for diamond
close in 1997, but limited production
began there again in 2000. deposits. Local geologist Howard Coopersmith
and a handful of others explored the area and, by
1977, had unearthed several dozen tiny crystals. But it was hardly a significant yield:
Most of the crystals weighed less than 0.0025 ct., and the largest one was only
0.059 ct.
Corporate interest faded, but Coopersmith didn’t give up. In 1987, he helped form
a diamond exploration company. That same year, he discovered two diamondiferous
kimberlite pipes at Kelsey Lake. His company leased the property for further study.
By 1993, Coopersmith’s company had unearthed more than 100,000 diamonds in
the area, including some gem-quality stones of two carats or more. The first big
breakthrough came in 1994 with the discovery of a 14.2-ct. gem-quality diamond. In
December of that year, the company became a wholly owned subsidiary of
Redaurum Ltd., an international diamond mining firm.
The mine opened on June 1, 1996. In September of that year, miners unearthed
a 28.3-ct. fancy yellow diamond. A month later, an 11.75-ct. gem-quality diamond
was recovered.
In September 1996, mine owners offered the first 2,500 cts. of production, including
the 28.3-ct. stone, for sale at a closed-bid auction in Denver. By October, 1,486 carats
of Kelsey Lake diamonds had been sold, at an average of about $172 per carat. The
diamonds from Kelsey Lake were marketed under the “Colorado Diamonds” trademark
and sold exclusively by major Colorado area jewelers.

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 EXPLORING FOR DIAMONDS

Thomas Hunn

The Kelsey Lake mine in Colorado opened in 1996 after almost twenty years of exploration. So far, its
diamonds have been marketed solely in the US.

In its first year, Kelsey Lake produced about 12,000 cts. About 65 percent of the
stones were gem quality, and 25 percent weighed more than a carat. The colors ranged
from near-colorless to very dark brown.
It looked like Kelsey Lake was on its way to many years of steady production. But
Redaurum sold its mining operations to concentrate on exploration, and the mine closed
in late 1997. It remained dormant until late in the year 2000, when a Canadian company
reopened it, upgraded its processing plant, and started production again.
Kelsey Lake’s story is typical of many diamond-mining ventures. Even if everyone
knows the diamonds are there, those diamonds remain in the ground unless someone
thinks mining them is worth the tremendous investment of time and money.

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DIAMONDS AND DIAMOND GRADING 5

Ke y C o n c e p t s
Growing diamond demand helps motivate the Diamond exploration specialists start by looking
search for new diamond sources. for the oldest parts of the earth’s crust.

It takes many years and millions of dollars to Most diamonds mined today come from pipes.
develop a diamond mine.
A mining company must consider a potential
Modern diamond exploration involves careful mine’s location, climate, and political conditions
planning and sophisticated equipment. along with its content.

For a mine to be successful, the projected value

of its diamonds must be more than the cost of
mining them.

Key Terms
Alluvial deposit—A deposit where gems are Industrial rough—Diamond rough suitable
eroded from their source rock, then trans- for use in tools, drills, abrasives, and other
ported away from the source and further industrial applications.
concentrated.
Marine deposit—Secondary diamond
Bulk sampling—Large-scale character deposit carried by rivers or streams to the
sampling. ocean floor or shoreline.

Character sampling—Testing for the size, Microdiamond testing—Screening for the

shape, clarity, and color of the diamonds in presence of tiny diamonds in a sample.
a deposit.
Ore grade—Concentration of diamond in a
Cuttable rough—Diamond rough with good potentially mineable deposit.
enough size, shape, clarity, and color to
produce a polished stone suitable for use Primary deposit—Gems found in the rock
in jewelry. that carried them to the surface.

Gravity sorting—Separating heavier Secondary deposit—Gems found away

materials (diamonds) from a test sample. from their primary source.

Indicator minerals—Minerals formed

together with diamonds at great depths
and brought to the surface by the same
kimberlites or lamproites.

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 EXPLORING FOR DIAMONDS

ASSIGNMENT 5

QUESTIONNAIRE

Each of the questions or incomplete statements below is followed by several possible answers. Choose the
ONE that BEST answers the question or completes the statement. Then place the letter (A, B, C, or D)
corresponding to your answer in the blank at the left of the question.
If you’re unsure about any question, go back, review the assignment, and find the correct answer. When
you’ve answered all the questions, transfer your answers to the answer sheet.

________1. Diamond deposits found at the ocean’s shore are

A. marine deposits.
B. primary deposits.
C. industrial deposits.
D. shoreline deposits.

________2. For more than 2,000 years, the only known diamond sources were
A. alluvial.
B. primary.
C. kimberlite pipes.
D. ancient volcanic craters.

________3. Diamonds are more concentrated in

A. marine deposits.
B. primary deposits.
C. volcanic deposits.
D. mountain deposits.

________4. Only a small percentage of known diamond deposits are mined because most
A. are not profitable.
B. are too close to populated areas.
C. are too far from populated areas.
D. require expensive government permits.

CONTINUED NEXT PAGE...

IF YOU NEED HELP: Contact your instructor through the GIA Virtual Campus, or call 800-421-7250 toll-free in the US and Canada, or 760-603-4000;
after hours you can leave a message.

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DIAMONDS AND DIAMOND GRADING 5

________5. A mine’s potential profitability depends in part on

A. its ore grade.
B. its location on a craton.
C. having a small, compact pipe.
D. a good kimberlite-to-lamproite ratio.

________6. Most of the diamonds mined today come from

A. pipes.
B. beaches.
C. riverbeds.
D. the ocean floor.

________7. Diamonds classified as cuttable can be 100 times more valuable than
A. marine diamonds.
B. alluvial diamonds.
C. industrial diamonds.
D. gem-quality diamonds.

________8. Indicator minerals in kimberlite and lamproite might include tiny

A. emeralds.
B. sapphires.
C. amethysts.
D. diamonds.

________9. The first step in exploring for diamonds is to

A. collect bulk samples of ore.
B. search for ancient volcanoes.
C. look for the oldest parts of the earth’s crust.
D. examine river gravels for indicator minerals.

________10. Gravity sorting separates diamonds from

A. river gravels.
B. lighter materials.
C. heavier materials.
D. indicator minerals.

CONTINUED NEXT PAGE...

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 EXPLORING FOR DIAMONDS

________11. Diamond rough suitable for use in tools, drills, and abrasives is
A. cuttable quality.
B. industrial quality.
C. primarily from marine deposits.
D. a byproduct of the exploration process.

________12. To focus their search for diamond deposits, geologists look for
A. river gravels.
B. trace elements.
C. indicator minerals.
D. small grains of graphite.

________13. Diamond rough suitable for use in jewelry is called

A. cuttable.
B. Grade A.
C. top-quality.
D. jewelry-quality.

________14. A profitable mine

A. is close to a source of water.
B. has a high percentage of microdiamonds.
C. meets governmental and environmental regulations.
D. produces diamonds whose value is higher than the mine’s operating costs.

________15. The concentration of diamonds within a pipe is called

A. drift.
B. ore grade.
C. overburden.
D. rough grade.

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 DIAMONDS AND DIAMOND GRADING 5

PHOTO COURTESIES
The Gemological Institute of America gratefully acknowledges the following people and organizations
for their assistance in gathering or producing some of the images used in this assignment:
Ashton Mining Limited, 2 (bottom), 17, 18
BHP Diamonds, Inc., 6, 14 (bottom right)
Diamond Trading Company, 1, 3, 9, 12 (top), 13, 19 (bottom)
REX Diamond Mining Corporation, 12 (bottom), 14 (top right), 15, 16 (top left and right)

26
 1. Introduction: Beyond the Essentials

2. Birth of the Modern Diamond Industry

3. The Modern Diamond Market

4. How Diamonds Form

5. Exploring for Diamonds

6. Diamond Mining

7. The Diamond Crystal

8. Diamonds and Light

9. The Evolution of Diamond Cutting

10. Finding and Identifying Clarity

Characteristics

11. Grading Clarity

12. Diamonds and Color

13. Grading Color

14. Grading Proportions—Table, Crown,

and Girdle

15. Grading Proportions—Pavilion and

Culet—and Evaluating Finish

16. Grading Fancy Cuts

17. Estimating Weight, Recutting, and

Repolishing

18. Diamond Simulants

19. Synthetics and Treatments

20. Succeeding in the Marketplace