Gem Diamonds Limited
05 November 2007
5th November, 2007
GEM DIAMONDS LIMITED
493 CARAT WHITE DIAMOND NAMED THE 'LETSENG LEGACY'
Gem Diamonds Limited (LSE: GEMD) ('Gem Diamonds') and the Government of the
Kingdom of Lesotho are delighted to announce the 493 carat white diamond
recovered from the Letseng mine has been named 'Letseng Legacy'.
The Letseng Legacy ranks as the world's 18th largest rough diamond and was
recovered from the Letseng le Terai Mine in Lesotho on the 7th of September.
The name reflects growing legacy that the Letseng le Terai Mine is creating as a
producer of remarkable diamonds. Letseng Diamonds, which is 70% owned by Gem
Diamonds and 30% owned by the Government of the Kingdom of Lesotho, has now
produced three of the world's top 20 diamonds. Two of these were recovered by
Gem Diamonds in the last 13 months - the 603 carat Lesotho Promise recovered in
August 2006 and this 493 carat diamond.
The 493 carat Letseng Legacy will be sold on tender in Antwerp by WWW
International Diamond Consultants on Wednesday the 14th of November at a
ceremony attended by the Lesotho Minister of Natural Resources, the Honourable
Minister Monyane Moleleki, and the Gem Diamonds directors.
The Lesotho Promise, which was the 15th largest rough diamond, was sold on
tender in October 2006 for US$12.4 million to Graff Jewellers. The collection
of polished diamonds from the Lesotho Promise is expected to sell for between
US$25-30 million. The Lesotho Brown diamond was recovered in 1961 and ranks as
the world's 16th largest diamond. It yielded 18 polished diamonds, the largest
of which was recently re-acquired by the original buyer, jewellers Harry
Winston.
In January 2007, Letseng Diamonds also produced a 215 carat D-colour flawless
diamond which subsequently sold on tender for US$8.3 million.
The Letseng Mine hosts two kimberlites, the Main and Satellite Pipes, that have
a combined diamond resource value of US$4.7 billion. It is renowned for
producing some of the world's largest diamonds which attract the highest average
price per carat of any kimberlite mine. As reported in Gem Diamonds' Interim
Results to end June 2007 released on the 13th September, the average price per
carat achieved from the Letseng Satellite Pipe was US$1894 and US$1128 from the
Main Pipe. This compares with the world average price of approximately US$81
per carat.
Gem Diamonds Limited
Clifford Elphick
Tel: +44 203 043 0280
Gem Diamond Technical Services (Pty) Limited
Angela Parr
Tel: +27 83 578 3885
Pelham PR
Candice Sgroi
Tel: +44 207 743 6376
About Gem Diamonds
Gem Diamonds is a diamond mining company with a balanced portfolio of a
producing kimberlite mine, two producing alluvial mines, development projects
and long-term prospects. Established in July 2005, Gem Diamonds is pursuing an
accelerated growth strategy and aims to become one of the world's leading
diamond companies. Gem Diamonds currently has one producing kimberlite mine, Let
seng, in Lesotho, two producing alluvial mines - Cempaka in Indonesia and
Mbelenge in the Democratic Republic of Congo (DRC), a kimberlite development
project in Botswana, two development projects in the DRC, one in the Central
African Republic and an option to develop the Chiri kimberlite concession in
Angola.
The Company recently made an offer to Kimberley Diamond Company's shareholders
to acquire their shares in this company, which owns the Ellendale Mine in north
Western Australia, and which was approved by Gem Diamonds' shareholders at an
Extraordinary General Meeting on 16 October 2007.
Gem Diamonds currently has a specific focus towards higher value diamonds, a
segment of the market that its management believes will deliver superior long
term returns.
For further information about Gem Diamonds visit www.gemdiamonds.com .
This information is provided by RNS
The company news service from the London Stock Exchange