drilling for diamonds: high risk, high reward
TRANSCRIPT
By Ehud Arye Laniadowww.ehudlaniado.com
Drilling For Diamonds: High Risk, High Reward
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Presentation by Ehud Arye Laniado
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This presentation is aboutGray diamonds.
A link to the full article can be found on the last slide of the presentation
Aug 2016
The views expressed here are solely those of the author in his private capacity. None of the information made available here shall constitute in any manner an offer or invitation or promotion to buy or to sell diamonds. No one should act upon any opinion or information in this website (including with respect to diamonds values) without consulting a professional qualified adviser.
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Drilling For Diamonds: High Risk, High Reward
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After considering the techniques that diamond exploration companies use to identify kimberlite pipes, we know that while technology and know-how have improved steadily, it is still true that only about 1% of kimberlite pipes will eventually yield an economically-viable diamond deposit. Finding a kimberlite field is by no means a guarantee of success, and a lengthy and expensive process of testing and drilling must be undertaken to test the viability of a pipe once it is discovered.
Aug 2016
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Drilling For Diamonds: High Risk, High Reward
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• In simple terms, exploration companies take a series of samples from a kimberlite target, with each one getting gradually larger and more expensive. Each type of test is designed to assess different variables, depending on the stage of exploration. Since sampling is expensive, companies often have to raise additional financing before continuing on to the next phase of testing, and the previous results must be positive to ensure that they can raise sufficient capital to continue.
Aug 2016
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Drilling For Diamonds: High Risk, High Reward
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The first stage in testing is to analyze samples from the surface around an anomalous area expected to be a kimberlite. This usually means taking rock samples and testing for the presence of non-diamond indicator minerals in sufficient quantities to yield a diamond-bearing kimberlite. Remember that certain indicator minerals, specifically a special type of garnet, are formed in the same region of the Earth as diamonds, and can be indicative of a diamond-bearing pipe. In rare cases, there can be kimberlite outcrop, a portion of the underlying kimberlite that is exposed at the surface. This is unusual - more commonly, we find kimberlite boulders and other smaller fragments removed during weathering and erosion.
Aug 2016
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Drilling For Diamonds: High Risk, High Reward
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• Unlike other fancy colors that often show obvious color saturation, gray diamonds tend to show a very subtle shade or tone. They often appear like white stones with a metallic or light bluish tint. For jewelry manufacturers, these stones can be used to produce very unique designs that give consumers the added benefit of exclusivity – sough by so many.
July 2016
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Drilling For Diamonds: High Risk, High Reward
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• Given their rarity and low cost, gray diamonds provide potential buyers with the opportunity to own a unique and personalized piece of jewelry without needing a large budget. Also, unlike most fancy color diamonds that are traditionally cut into fancy shapes like radiants, emeralds and ovals to maximize color saturation, gray diamonds look very nice when cut into round brilliants. This allows consumers to own a coveted round shape stone, while still owning a unique color diamond. Furthermore, gray diamonds have the added benefit of hidinginclusions inside the stone. Since natural inclusions are often dark or black, a gray diamond of lower quality may appear to show a slightly better clarity when viewed with the naked eye.
July 2016
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Drilling For Diamonds: High Risk, High Reward
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The views expressed here are solely those of the author in his private capacity. None of the information made available here shall constitute in any manner an offer or invitation or promotion to buy or to sell diamonds. No one should act upon any opinion or information in this website (including with respect to diamonds values) without consulting a professional qualified adviser.
Aug 2016
A full version of the article can be found here:http://
www.ehudlaniado.com/home/index.php/news/entry/drilling-for-diamonds-high-risk-high-reward
