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Canadian Diamonds
Carol Besler
06/01/2005
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Bergman has been following the Star Diamond project and likes it
because, he says, “It’s accessible.” The mine is close to a power grid and a
highway. These are not minor considerations; everything from construction
supplies to staff had to be airlifted to the Diavik and Ekati sites. In the
final run-up to the completion of the Ekati mine, BHP was burning through $33
million a month transporting materials and workers. At the Star Diamond site,
Bergman notes, “You could order a pizza from the next town.”
Carats and Sticks
Last year, several of the exploration companies
visited Israel to participate in a conference on diamond mine development to
help spur investment from the local cutters. Every would-be diamond producer
courted two of the gem world’s most wanted power brokers, Benny Steinmetz and
Lev Leviev. Steinmetz, an international investor with extensive interests in
diamonds, natural resources, engineering and real estate, holds a stake in
several exploration companies. The Steinmetz Diamond Group controls Magma
Diamond Resources, which is the majority stakeholder (holding approximately 10
percent) in Shore Gold. Leviev, who owns shares in mines in Angola and Russia
and cutting factories around the globe, has also been looking into Canadian
partnerships. A proposed deal fell through in February, however, because of a
dispute with BHP over the number of rough diamonds to be supplied.
De Beers,
late to the game but quickly catching up, is now spending more than 40 percent
of its exploration budget in Canada. It is currently developing one Canadian
mine at a site called Snap Lake, which it acquired from Aber Diamond. De Beers
also holds a majority stake in Kensington Resources, a junior that is exploring
a number of kimberlite finds in the Fort à la Corne area. Because Snap Lake lies
closely to Shore Gold’s Star Diamond project, some observers speculate that
Shore Gold could soon be in play if De Beers’ interest in the area
grows.
Fipke, whose life story was told in the book Fire into Ice: Charles
Fipke and the Great Diamond Hunt, still obsesses over the hunt for the next big
strike. He has launched a new junior, Metalex Ventures, and owns a controlling
interest in a parcel of claims near the town of Attawapiskat in northern
Ontario. De Beers is not far behind—the company is prospecting extensively in
the area and may soon develop a site there.
Carol Besler, based in Toronto, writes about Jewelry and Gems. carol@style.caAdditional Information
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