Evaluation of secondary diamond (and gemstone) deposits according to the SAMREC Code

Abstract

SYNOPSIS Alluvial diamond and other gemstone deposits have, typically, been exploited by small artisanal operations with little or no geological control. Over the last decade, however, alluvial deposits have become more interesting to larger (often listed), mid-tier companies wishing to benefit from the higher incomes generated by high-quality stones. The difficulties associated with evaluation and valuation of such alluvial diamond/gemstone deposits are widely known but, regrettably, often not widely understood - leading to several misconceptions over what can and cannot be expected from such deposits. Fortunately, there is a reasonably well-established body of knowledge on alluvial diamonds that has resulted in accepted industry-standard practices of how to evaluate these deposits. The 2016 version of the SAMREC Code includes several sections specific to the requirements of secondary diamond and gemstone deposits, both alluvial and marine. Consequently, it is possible to define Diamond/Gemstone Resources in accordance with the major international Committee for Mineral Reserves International Reporting Standards (CRIRSCO) type codes. This paper outlines some of the requirements and some of the pitfalls that need to be appreciated while estimating Diamond/Gemstone Resources and/or Reserves on such deposits. Keywords: Reporting Codes, SAMREC, alluvial diamonds, gemstones, Resources, Reserves.