Sharetrader,diamond exploration is probably the most expensive...

Sharetrader,

diamond exploration is probably the most expensive exploration on the planet.

Finding a pipe, whether it be kimberlitic of lamphrodic (?),is comparatively simple geophysics.

Testing it costs a small fortune-analysing the indicators such as garnets etc is extremely expensive.

Then you have the empirical evidence which suggests around one in ten pipes have diamonds. Of those, around a further one in ten may have commercial accumulations of diamonds. That implies you are batting one in a hundred once you find a pipe.

Then overlay the final killer. The Russians developed the technology a few decades ago to synthesize diamonds up to a couple of carats.

Then you have a completely non transparent marketing mechanism for the commodity itself.

Not an industry that has rewarded explorers too much over the decades.

Cheers, TAS