Rockwell Set to Boost Diamond Values

Vancouver — Rockwell Diamonds (RDI-V, RDIAF-O) has brought in some help to increase realized value from its large and “special” stones produced at alluvial operations in the Kimberley region of South Africa.

A marketing agreement with Steinmetz Diamonds sees the companies sharing the profits created by manufacturing, marketing and distribution of selected stones meeting specific quality and colour criteria.

The select stones will be processed at Steinmetz’s manufacturing facilities in South Africa.

Rockwell will receive payment from the diamond marketer for the specialty stones, while Steinmetz will get a marketing fee of around 3% of the sale price. Net profits from the sale of the polished stones will be equally shared.

Rockwell reports monthly production of about 2,500 carats of mostly gem-quality diamonds from its alluvial operations (Wouterspan, Holpan and Klipdam). About 70% of the diamonds are 2 carats and larger, including the occasional recovery of diamonds weighing more than 100 carats.

In its August diamond tender, Rockwell sold 1,547.37 carats of the 2,713.27 carats offered for total revenue of just over US$5.2 million (51% attributable to Rockwell) for an average of US$3,362 per carat. The largest stone sold was a 72.58-carat intense fancy yellow, recovered from Klipdam, for US$919,889 or US$12,674 per carat.

The company reports operating costs of about US$3 per tonne or US$857 per carat for the August parcel.

A recent indicated resource estimate for Rockwell’s 51%-owned Wouterspan alluvial diamond project, on the Middle Orange River, in South Africa’s Northern Cape province, calculated 15.8 million cubic metres grading 0.63 carat per 100 cubic metres, or about 100,000 contained carats. Another 20.7 million cubic metres grading 0.63 carat per 100 cubic metres, or about 131,000 contained carats, was inferred.

Most of the alluvial diamonds at Wouterspan occur in two distinct gravel layers — the upper Rooikoppie and basal Primary gravels — that are separated by a hardened calcrete horizon.