Burgundy Diamond Mines has received its first parcel of rough fancy colour diamonds at the Ellendale cutting and polishing facility in Perth, after their purchase in September.
Burgundy said this parcel was an ideal place to begin operations at Ellendale.
“(The diamonds) form a perfect entry point for Burgundy’s unfolding strategy of production of high-value polished fancy colour diamonds, and a progression towards the company’s own production of fancy yellow goods from the Ellendale Diamond Project in Western Australia,” the company stated.
The fancy vivid and fancy intense yellow diamonds were bought from Arctic Canadian Diamond Company with the largest weighing 17.8 carats.
Burgundy managing director and chief executive officer Peter Ravenscroft said the company had the capacity to extract immense value from this inaugural purchase.
“It is exciting to see the truly beautiful rough diamonds that we purchased from Arctic – the first of a number of purchases from diamonds producers,” Ravenscroft said.
“We are already planning the cutting and polishing of these stones in our Perth facility, and through our emerging branding strategy are anticipating being able to rapidly generate multiples of value from these investments.”
The Ellendale facility will continue to process third-party goods until such time as the company’s own Ellendale diamond project is ready for operation by Burgundy.
Ravenscroft recently told Australian Mining Burgundy’s business strategy revolves around a valuable niche in fancy colour diamond mining.
“We’re very excited about the potential and this focus on the small niche sector gives us the opportunity of establishing a unique end-to-end diamond business,” he said.
“We are now seeing ourselves as a company that produces and sells polished fancy colour diamonds, with an upstream business growing a supply of fancy colour rough stones.”
The diamonds from Arctic were worth $US1 million ($1.35 million) at the time of sale.