Canada likely to be world’s next diamond producer

There will be at least one new diamond mine in the Northwest Territories within the next five years.

That was the prediction offered at a conference on exploration for diamonds, held recently at Queen’s University.

“Canada will be the next new country that comes on-stream as a major diamond producer,” John Gurney told an audience of government, university and industry representatives.

An internationally recognized diamond expert, Gurney is a professor in the Department of Geochemistry at the University of Capetown in South Africa. He has been involved for many years in the examination, discovery and evaluation of diamond deposits around the world.

Referring to South Africa’s famous Kimberley pipe, he said the kimberlite discoveries by Dia Met Minerals (TSE) and BHP Minerals Canada near Lac de Gras, N.W.T., are “Kimberley look-alikes.”

Discovered in South Africa in 1871, the Kimberley pipe yielded more than 14.5 million carats of diamonds before production ceased in August, 1914. Gurney’s conclusions are largely based on the chemistry of the indicator minerals in the pipes discovered near Lac de Gras. He was one of the first people to pioneer the use of indicator mineral chemistry for evaluating the economic potential of kimberlites.

Aside from Gurney’s presentation, the 3-day workshop, organized by QMinEx Associates, focused on the factors which influence the exploration and evaluation of diamond deposits. Various aspects of diamondiferous kimberlites and related rocks were discussed, including tectonics, petrology, mineralogy and geochemistry.

Other speakers included Herbert Helmstaedt, who presented theories about structural and tectonic controls of diamond deposits, and Thomas McCandless, who discussed microdiamond and indicator mineral morphology. With regard to exploration, Gurney said all available tools should be used to evaluate kimberlites, adding that companies should not rely on only one approach, such as geophysics or geochemistry.

He said the best place to explore for diamonds currently is the Territories and suggested that interested companies would be wise to join forces with the juniors already established in the region.

He described the current rush as unique in that, owing to stock market requirements, Lac de Gras is the first diamond exploration play where information has had to be released to the public (generally, diamond exploration is very secretive). He added that the necessity of making information available may, in some ways, be determining how exploration is being carried out and how data are being released.

Among Gurney’s other observations:

* Determining the economics of a pipe, according to conventional wisdom, involves collecting and processing a 30,000-tonne sample. Ideally, the sample will yield a large number of stones, and typically a parcel of 5,000-10,000 carats will be priced to determine the value of the pipe. By comparison, the BHP-Dia Met joint venture has collected only about 1% of the required tonnage. * Although some colored stones can be quite valuable, white stones determine the economics of a deposit. So-called “fancy” stones just supplement revenue. * A lack of infrastructure, coupled with mining problems and slow economic reforms, should prevent any increases in Russian production. “If they can maintain current production levels, they will be doing well.” * Increases in production from many African nations are being hindered by politics and lack of infrastructure.