Incolor - Incolor Summer 2015

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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