GEM DIAMONDS LIMITED

Gem Diamonds to “effectively double” Letseng mine carats to 2014

The board of London listed African diamond miner, Gem Diamonds Limited (LSE: GEMD), has green lit plans to expand the company’s 5.6 million tonnes per annum Letšeng mine in the Kingdom of Lesotho (“Lesotho”) by almost double its current capacity; to 10 million tonnes per annum at an estimated cost of US$280 million funded from existing cashflow.

Letšeng rocks on: one rough worth more than $1 million, 10 bigger than 10.8ct per week

Gem Diamonds' Letšeng mine continued to polish its reputation as the world's richest source of large diamonds, the London-listed company reported in a management statement covering July to October.

15 diamonds were found that were sold for more than $1 million and 50 roughs fetched prices greater than $20,000/ct;  one fancy pink went for $156,000 /ct.  Letšeng also recovered 171 diamonds greater than 10.8 ct in size. Excluding the 550ct Letšeng Star sold for $16.5 million last month, the mine averages sales of $2,425/ct. No wonder then that the board will meet this month on a feasibility study expanding capacity 75%.

Gem Diamonds to supply water to Kalahari bushmen fighting for residence rights in game reserve

London-listed Gem Diamonds said in a statement on Monday that it will drill four boreholes in the Central Kalahari Game Reserve in partnership with VOX United, a non-governmental organisation to provide the bushmen or Basarwa living in the reserve with water.

The community is locked in a bitter battle with the Botswana government which accuses them of depleting the park's natural resources, while the Basarwa say that the government is violating their rights by trying to relocate them and that their impact on the environment is negligible.

Gem Diamonds in talks with Lucara

Gem Diamonds says it is in very early stage talks with Canadian-listed Lucara Diamond Corp over a possible merger.

"These discussions are at a very early stage and there can be no certainty the contemplated merger will occur or of the timing or terms of any such transaction," Gem Diamonds said in a statement on Monday.

Gem Diamonds: one tough day for results

With Japan the third biggest buyer of global jewellery, Tuesday was a tough day for London-listed Gem Diamonds to announce results.