196ct White Diamond Recovered

RNS Number : 2448S

Gem Diamonds Limited

07 September 2010

 



7 September 2010

Gem Diamonds Limited

196ct White Diamond Recovered at Letšeng Mine

Gem Diamonds Limited (LSE: GEMD) ("Gem Diamonds") and the Government of the Kingdom of Lesotho are delighted to announce that an exceptional 196 carat rough white diamond has been recovered from the Letšeng mine in Lesotho on 24 August 2010.

This remarkable rough diamond is expected to achieve a substantial price per carat as preliminary examinations indicate that it is  expected to produce top colour and top clarity polished diamonds.

Since Gem Diamonds' acquisition of the Letšeng mine in mid 2006, it has produced three of the world's twenty largest recorded diamonds, namely, the 603 carat Lesotho Promise, recovered in August 2006, which sold for US$12.4 million; the 493 carat Letšeng Legacy, recovered in September 2007 which sold for US$10.4 million; and the 478 carat Light of Letšeng, recovered in September 2008, which sold for US$18.4 million.

Gem Diamonds' CEO, Clifford Elphick commented:

"Letšeng continues to live up to its reputation as a unique producer of exceptional diamonds and the recovery of this remarkable 196 carat white diamond reinforces its position as one of the great mines in the diamond industry. In order to increase the returns from this world class asset, management is focused on a number of workstreams which aim to substantially expand production and increase value at Letšeng."

For further information:

Gem Diamonds Limited

Clifford Elphick, Chief Executive Officer
Glenn Turner, Chief Commercial Officer
Tel: [phone]

Richard Chetwode, Investor Relations
Tel: [phone]
Mob: [phone]

Gem Diamond Technical Services Ltd

Sherryn Tedder, Media

Tel: [phone]

Mob: [phone]

Pelham Bell Pottinger

James MacFarlane

Tel: [phone]

James Henderson
Tel: [phone]

Charles Vivian

Tel: [phone]

About Gem Diamonds:

Gem Diamonds is an international diamond mining company that has pursued a long term growth strategy through targeted acquisitions and the development of its existing assets. Due to the recovery in diamond prices in 2010 the Company's focus has been to place itself in a position to take advantage of long term growth opportunities.

The Company's mining portfolio comprises producing kimberlite and lamproite mines in Lesotho and Australia, as well as development projects in Angola and Botswana. The Company also owns a diamond cutting technology company.

With Letšeng's production of the world's most sought after remarkable white diamonds and Ellendale's production of rare fancy yellow diamonds, Gem Diamonds remains focused on higher value diamonds. This segment of the market is likely to deliver attractive long term returns.

www.gemdiamonds.com

 

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