SUMMER 2015 ISSUE 29
GREENLAND RUBIES
The Final Straight
The Aurora Diamond Collection Three-Phase Emeralds From Musakashi Erica Courtney - Coloring The Stars
GEMSTONES DIRECT FROM THE SOURCE
25th
Sri Lanka Gem & Jewellery Show
Organised By Principal Sponsor
Supported by
National Gem & Jewellery Authority
Sri Lanka Export Development Board
Official Electronic Security Surveillance Provider
Sri Lanka Gem Jewellery Association
Securo Dynamics (Pvt) Ltd
www.facetssrilanka.com
Official clearing & Forwarding Agent
Sethmill Lanka (Pvt) Ltd
SUMMER 2015 ISSUE 29
SUMMER 2015 ISSUE 29 GREENLAND RUBIES
The Final Straight
The Aurora Diamond Collection Three-Phase Emeralds From Musakashi Erica Courtney - Coloring The Stars
Cover Image: Rubies from True North Gems’ operation against the background of an aerial view of Greenland.
CONTENTS Foreword Industry News
36
6 Richland Resources Capricorn Delays Sale of Sapphires 7 Zambia’s Government Cuts Mining Royalties 8 Archaeological Dig Uncovers 2,000-Year-Old Pearl 11 Report Projects 21 Years of Output From Montepuez Ruby Mine 15 ICA 2015 Congress Provides Food For Thought Mining
18 In Search of Emeralds From the Musakashi Area of Zambia 26 ICA Mine Tour in Sri Lanka – In Search of Sapphire and More 58
Gemology
30 The Aurora Collection: Exploring the World of Fancy Color Diamonds Cover Feature
36 True North Gems Greenland Mining - The Final Lap Trends and Jewelry
52 Sri Lanka’s Best-Kept Secret - Its Jewelry-Making Tradition Jewelry Design
70
58 Erica Courtney – Coloring the Stars 62 Elke Berr – For the Love of Gems Market Trends
66 Rio Tinto Launches Diamonds with a Story Auctions
70 Colored Gemstones Play Leading Role at UK Auction 74 Jadeite and Colored Gemstones Lead at High-Selling Hong Kong Auction Trade Shows
80
76 Slow Hong Kong June Fair Reflects State of Industry 80 Color in the Desert – Gemstone Jewelry Shines at JCK
FOREWORD
China Drives Market Correction
ISSN: 1158934X
H
istory tells us that a good crisis is never to be wasted. In other words the ability to rebuild
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after a strong decline allows a market to
rebound from a lower level and on firmer foundations, allowing for a steady and more solid period of growth. This might prove to be the case with the Chinese market. The Shanghai stock market crash led to approximately one-third of its value being lost in one month from early June onwards, with a staggering $4 trillion lost by investors, many of them being private individuals.
InColor Editorial Committee Clement Sabbagh - Chairman Jean Claude Michelou - Editor-in-Chief Terry Coldham Richard Hughes Managing Editor Albert Robinson Marketing and Sales Dirk Blommaert incolor@gemstone.org Advertising Account Coordinator Ashlynn Yeong ashlynn.yeong@gemstone.org InColor Bureau USA Claudiu Margarit claudiu@gemstone.org [1] (212) 620-0900
Following on from the ongoing slowdown in the Chinese economy over the past year, the stock market’s fall will clearly have a big impact on gemstone and gemstone jewelry purchases. The sense of panic engendered by the stock market’s decline has led many people to lose a not inconsiderable part of their wealth. Against this background, it is reasonable to assume that jewelry and gemstone purchases will not be uppermost in the minds of many consumers. But, as with declines in the past, and this one can be compared with the NASDAQ collapse of 1999-2000 when the ‘dotcom bubble’ burst, more realistic market prices are the basis for building the market afresh. Unfortunately, the United States has not been able to step up to the plate and take up the slack caused by declining Chinese demand, as was seen in the results of the JCK Show in June which showed the U.S. market as stable but little more than that. A decline in China, of course, as in any industrial sector, ripples across the world rapidly: in not so faraway Thailand, the effect is being felt with a decline in colored gemstone demand and falling production. And the results of the Gemfields ruby auction in Singapore in June provide further evidence of a declining regional market and a drop in market sentiment. The average price per carat realized, at $617, was 10 percent lower than the average price per carat achieved at the miner’s first high-quality ruby auction in Singapore in
Published by ICA (International Colored Gemstone Association Ltd.) Unit No.11, 8th Floor, Hang Ngai Jewelry Centre, No. 4 Hok Yuen Street East Hung Hom, Kowloon, Hong Kong Telephone: (852) 2365 9318 Fax: (852) 2365 9371 Copyright Contents of InColor are copyright. No part of this publication may be reproduced in any manner without the permission of the publisher. InColor makes every effort to ensure the accuracy of the information it publishes. Opinions expressed in this magazine are the sole responsibility of their authors. www.gemstone.org
December 2014. In addition, the company records show that the untreated rubies offered at the auction were only 66 percent sold by weight. It is no secret that gemstone prices worldwide have risen almost indecently over the past decade due to demand from the burgeoning Chinese market. This has been clearly seen in the rising prices of stones such as tourmaline and specially rubelite, as well as other colored gemstones. Unfortunately, prices of gemstones were also pushed up due to a significant amount of speculation taking place in the somewhat young and immature market. Top-quality stones in the top four: diamond, ruby, emeralds and sapphires have not generally been affected as much. However, prices of diamonds have decreased and inventories have risen to critical levels. The need for a readjustment, given the economic challenges that China faces, provides an opportunity to create a stronger, albeit slower, market with demand based on knowledge of gemstones and an educated class of consumers.
Editor-in-Chief
Jean Claude Michelou
InColor ׀Summer 2015 5
INDUSTRY NEWS
Richland Resources Capricorn Delays Sale of Sapphires From Australia Mine
R
potential Sightholders and trade buyers,
existing field to test recovery methods)
and discuss downstream branding.
was conducted. The company aims to
The sapphire bearing ore mined while
gradually increase output to reach full
the intermittent electrical fault was
capacity.
rectified was stockpiled and processing
Large volumes of blue sapphires
ichland Resources Ltd,
recommenced. Stones were sorted and
have been discovered at the site, and
the gemstone producer
graded in preparation for sale in the
Capricorn also has produced yellow
and developer of the
third quarter.
and green stones. Richland said the
Capricorn Sapphire project
Chief Executive Officer, Bernard
Capricorn sapphire mine is one of
in Queensland, Australia,
Olivier said: “At the end of June we
the largest of its kind in the southern
said that following consultation with
were able to showcase the first sapphires
hemisphere, and capable of treating
key Sightholders, it decided to delay
recovered from the Capricorn Sapphire
up to 200 loose cubic meters per hour.
its first sale of sapphires from the mine
mine. We made the decision not to make
The site is comprised of two new mining
to the third quarter of 2015 and held a
the event a formal sight as the quantity
leases, covering 490 hectares, and is
product display and education session
of gemstones was not sufficient for the
completely owned by Richland. Some
on its first recovered sapphires during
type of marketing profile we wished
sapphires are being cut and the first blue
the June 25-28 Hong Kong Gems and
to build with customers. Whilst it was
and colored sapphires are expected to
Jewellery Fair. Material was also made
disappointing, start-up issues like this form
be available to buy online in September.
available for further testing and cutting
part of a rapid mine redevelopment
The mine is an important development
by potential Sightholders and other
process as we continue our start-up and
for Richland as it moves away from
interested parties.
ramp-up phase. However, I believe the
Tanzania and tanzanite mining into other
best way to solve these issues is to identify
colored stone markets, the company
and rectify them while in operation.”
said. The firm sold off its Tanzanite One
The decision to commence with a product display and education session was made as a consequence
Following 10 months of construction
mining and beneficiation business
of reduced production, caused by a
and development, Richland Resources
towards the end of last year, as well as
now rectified intermittent electrical fault
officially commenced production at its
its tsavorite license interests in Tanzania
that restricted processing recoveries over
Capricorn sapphire mine in the Spring.
to Sky Associates Group Limited for
the initial month of operations this year.
Mining of Open-pit 1 in the defined
approximately $5 million. It closed all
The resulting production to date would
JORC Resource got underway, with the
its retail outlets across the country, as
not be sufficient to warrant the start of
Capricorn processing plant dealing with
the buyer did not want to acquire them
the formal sight system for the sale of
sapphire-bearing ore.
as part of the deal.
Capricorn Sapphire stones.
The interim mining phase is being
Meanwhile, Richland launched its
The product display and education
conducted in an area of about one
new online platform which will also
session was used to introduce the first
acre, in the region where the infill drilling
include tanzanite under the Merelani
Capricorn Sapphire gemstones to
(the process of adding new wells to an
Tanzanite brand.
6 InColor ׀Summer 2015
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