Burgundy Diamond Mines has made its first purchase of third-party rough diamonds to be sent to its purpose-built cut and polish facility in Perth, Western Australia.
The recently acquired facility will produce Fancy Colour diamond products using diamonds from the company’s various operations including the Ellendale diamond project.
To inaugurate the facility, Burgundy was invited by the Arctic Canadian Diamond Company to participate in an auction of Fancy diamonds
Burgundy was successful in purchasing a number of Fancy Vivid and Fancy Intense yellow diamonds worth around $US1 million ($1.35 million) sourced from one of Arctic’s operations – Misery Pipe.
Burgundy managing director and chief executive officer Peter Ravenscroft said this process would provide authenticity to the company’s final diamond product.
“Acquiring rough diamonds from a leading diamond company such as Arctic provides direct provenance and ethical sourcing underpinned by the CanadaMark brand and aligns very closely with our strategy of complete end-to-end transparency on the origin of our polished product,” he said.
Ravenscroft said this would not be the last of Burgundy’s purchases from Arctic.
“We look forward to being able to expand rapidly on this initial purchase and are already sourcing further supply of third-party stones to cut and polish into a range of carefully branded Fancy Colour diamonds,” he said.
At Ellendale, Burgundy plans on returning the operation to production at the start of 2022, after funding was secured in July.
In June, as the company announced its plans for downstream processing, Ravenscroft said things were shaping up for strong growth at Burgundy.
“This is an ideal opportunity to secure specialist facilities and skills as a springboard for our planned business growth, incorporating a downstream extension to our diamond strategy,” he said