Gibb River Diamonds has completed a review of the mothballed Ellendale diamond mine in Western Australia that will help it edge closer to a proposed restart.
The independent appraisal, which was completed by which was completed by Independent Diamond Valuers International (IDVI) valued gems from the Ellendale 9 East Lobe at $US750 ($1120) per carat.
This price represents a 20 per cent increase since 2008, largely due to the high number of fancy yellow diamonds unearthed at the West Kimberley-based mine.
With these results, a mine revival is looking ominous for the site, which was closed in 2015.
Last December, Gibb River Diamonds accepted an offer from the Western Australian Government apply for new tenements at the site.
“This review is important as it helps Gibb River Diamonds to make commercial decisions regarding mine planning and development priorities at Ellendale,” the company stated.
“Previous operators had a contract to sell the fancy yellow component of their production to Laurelton Diamonds (the jeweller Tiffany & Co).
“It is uncertain if similar premium prices can be achieved with any future fancy yellow goods.
“However, there is a potential opportunity to capitalise in the uniqueness of these fancy yellow goods to sell above market prices.”
The independent appraisal showed a further 18 per cent increase at the Ellendale 9 deposit to $US559 per carat since 2008.
The Ellendale 4 deposit also experienced an increase in value to $US135 per carat, representing a 5 per cent rise in 12 years.
IDVI uncovered 16 per cent fancy yellow diamonds within the Ellendale East Lobe, compared with 9 per cent in the West Lobe.
Gibb River has affirmed that as this information is based on generic sales data, future sales results could “vary significantly” from those in the report, as no sales have occurred since 2015.