Kimberley Diamond Unearths First Pink Stone At Ellendale

13 08 2010

RAPAPORT… Kimberley Diamond Company, which is subject to a take-over bid by Gem Diamonds, has recovered the first pink diamond at its Ellendale Diamond Project in Western Australia.

The unique pink 1.58 carat stone was found at the Ellendale 4 property, and has an indicative value of at least $20,000 per carat in rough form, and up to $40,000 a carat once polished, the company said.

Ellendale has been more widely recognized for its production of yellow stones.
The company reported further “unusual recoveries” made at Ellendale in the past month, including a 10 carat white stone “almost totally covered in a calcite skin” at Ellendale 9, and a “circa 3 carat octahedral fancy yellow stone within a chunk of sandy tuff.”

Kimberley also said it had achieved the highest prices to date in recent sales, but did not provide sales figures.

“The upper end of the diamond market – which tended to be insulated against last year’s market fluctuations – continues to perform particularly strongly with record demand for better quality larger and specialty diamonds,” the company said in an October 11, 2007 statement. “This is strategically important for Kimberley, given that Ellendale produces a significant proportion of the world’s fancy yellow diamonds.”

In July, Gem Diamonds confirmed a $263 million offer for Kimberley Diamond and is awaiting approval of shareholders. Kimberley management said documents relating to the bid have been circulated to shareholders. The merger is expected to close by the end of 2007.




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