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Orchid Monday, November 10, 1997
   
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                                  GEMLAB REPORT: 

                               November 1997 - Issue #5

                                   by: Ted Themelis
                                themelis AT mail.otenet.gr

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In This Edition:

   - Diamonds from Venezuela

      http://www.ganoksin.com/borisat/nenam/gemlab5.htm
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                              Diamonds from Venezuela
                                   

        Venezuela currently produces about one percent of the world's
        total diamond output and represents one of the most important
        sources of diamonds in the Americas. Of special interest are
        the white and fancy colored diamonds found there, about which
        very little has been written. 

        History of Production
        Diamonds were first discovered in Venezuela in 1902. There
        followed sporadic and limited production from that point until
        1913. In 1915, diamondiferous fields were discovered in Rio
        Paragua and Rio Caroni. The first diamond company was formed,
        known as "Compania Anonima El Pao", which lasted until 1943. 

        Around 1927, settlers arrived in Gran Sabana, and by 1930,
        diamond exploitation had initiated with Brazilian
        collaboration. While considerable mining activity ensued at
        the Paratepui and Rio Surukun areas, production was limited.
        Gradually, additional diamond sites were exploited at the
        upper Caroni River (Santa Teresa, Agua Negra, Salva La Patria,
        El Vale, and El Polaco). However, production was limited and
        inconsistent untill 1942. 

        In 1942, the recovery of a 154 carat diamond crystal, the
        largest found in Venezuela and known as El Liberdador, created
        intense interest and a diamond rush followed. That same year,
        additional diamondiferous areas were discovered at Rio
        Icabaru, Rio Uaiparu, Guari, and others. In the subsequent
        years, other areas were exploited: in Gran Sabana, Uriman,
        Capaura, and Avequi in 1943; Cinco Ranchos in 1950; and in the
        fields at upper Paragua: El Casabe, Manare, Oris, Asa, and
        Chiguao in 1954. 

        The introduction of mass mechanized mining operations then
        dramatically increased the production of Venezuelan diamonds.
        Diamondiferous areas at the lower Caroni -- Caruachi, Playa
        Blanca, Rio Claro, and Merey - were exploited in 1961. In
        1963, the practical gold and diamond method of mechanized
        barges, known locally as chupadoras, was introduced, which
        also resulted in a considerable increase in production. In
        1968, the rich deposits of San Salvador de Paul and the nearby
        areas of Rio Parupa were exploited, followed by the most
        important diamondiferous deposits at Guianiamo in 1970.
        Guianiamo alone produced 85% of the total gem-quality diamonds
        mined in Venezuela for the period 1970-1978. During the last
        decade 1978-1988, diamond production there has risen steadily.
        No reliable diamond production figures are available in the
        last decade. 

        Geology
        All of the Venezuelan gold and diamond mining districts (which
        generally occur together) are situated within the
        physiological structure of the Guyana Sector (Escudo de
        Guyana) that occupies nearly 423,000 square kilometers, or
        roughly 45% of the total Venezuelan area. It is considered by
        many geologists to be an extension of the Guyana/Roraima group
        formation, one of the planet's oldest. 

        The Guyana Sector consists of the State of Bolivar and the
        Venezuelan Amazon Territories. The sector stretches from the
        northern banks of Rio Orinoco to the Brazilian border at the
        extreme south. The eastern part of the sector is located along
        the side of the politically disputed Venezuelan/Guyanese
        territories: the western part ends at the Colombian border. 

        Venezuelan diamonds are found in either eluvial or alluvial
        deposits. Eluvial deposits are formed by weathering and
        concentration in place by erosion agents of wind or rain wash.
        La Hoyada, El Polaco, and Leoncio are representative
        localities. 

        Alluvial deposits are gravelly and are derived from
        conglomerate formation. They are transported from other
        localities and placed on land by various erosion agents, such
        as streams, wind, and soon. In most cases, gravel and
        conglomerate containing diamonds are covered with river sand.
        Representative localities include Chiguao, Rio Icabaru, and
        Rio Oris. Kimberlite pipe has not yet been found in Venezuela.
        Well-informed geologists, however, have found indications that
        it may exist. 

        Diamondiferous Localities
        Based on morpho-phyiological criteria, the diamondiferous
        areas may be classified into several zones, namely Guyaniamo,
        Rio Caura, Rio Aro, and Caroni. ( Numbers enclosed in
        parentheses following mining sites refer to the corresponding
        diamondiferous localities shown on the map in Figure 2.)

             Rio Guyaniamo Zone. The remote, largely inaccessible
             mining sites of Caicara (8), Guyaniamo (15). And Guebrada
             La Grande (19), are dispersed along the banks of the Rio
             Guianiamo, ending at the Venezuelan Amazon territories.
             By far, the most productive diamondiferous area in
             Venezuela since its discovery in 1970 is the Guyaniamo
             (15) diamond fields. This zone is determined as inferior
             Precambrian.

             Rio Caura Zone. The riverbeds and banks of the nearby
             creeks at the upper Caura (28) River.

             Rio Aro Zone. The riverbeds and nearby banks at the lower
             Aro River (7); also at Veri (13) and Dori (17), in the
             upper Rio Aro.

             Rio Caroni Zone. This zone occupies the riverbed and the
             nearby banks of the Caroni River, which may be divided
             into three sections, namely: lower, central , and upper
             Caroni. The Caroni zone is determined as superior
             Precambrian.

        The lower Caroni section consists of the following
        diamondiferous mining areas: Rio Caroni with Caruachi (1),
        Playa Blanca (2), Ancho Caroni (3), Rio Claro (4), El Merey
        (5), Caroni (6), Piar (9), Paviche (10), El Pao (11), San
        Pedro de las Rocas (14 and 16); also El Casabe, Manare, and El
        Perro. Currently, the most important areas are the Rio Claro
        and Caruachi. Both are located about 30-35 kilometers east of
        Cuidad Bolivar and extend West along the south banks of the
        Rio Orinoco up to the tiny town of Passo Caruachi.

        The central Caroni section consists of Caroni (18), Rio Oris
        (21), Rio Asa (22), San Salvador de Paul (23), Chisguao (24),
        Asa (25), Caparo (26), Parupa (27), Guacharaca (29),
        Guachaquita (30), and Capaura (31); also Sute, Islas Monagas,
        Carrao, Los Frijoles, and others.

        The upper Caroni section has a morphological formation with
        three distinct diamondiferous areas, known as: oriental,
        central, and occidental, with their corresponding mining
        districts.

        The oriental area of the upper Caroni consists of the eastern
        part of the upper Caroni with the following localities noted:
        Gran Sabana (32 and 35), C.O.D.S.A. (36), Santa Elena (37);
        also Rio Kukenan, Guara, Rio Aponguao.

        In the central area of the upper Caroni there are La Hollada
        (38), El Polaco (39); also Rio Surukun, Santa Teresa, Agua
        Negra, Salva La Partia, El Valle, and Paraitepui.

        The occidental area occupies the western part of the upper
        Caroni and includes Caroni (34), Rio Icabaru (40), and Los
        Caribes (41). The upper Paragua may also be included in the
        same section with La Paragua (33) and Paramichi (42). Other
        localities include Surukun, Los Caribes, etc. 

        Mining Operations
        Extensive mining operations devoted exclusively to diamonds do
        not exist in Venezuela. The focus, emphasis, and prime target
        sought by the miners is gold. The diamonds are considered the
        by-product of the gold operations. At least one once of gold
        must be recovered daily to justify all operating costs and
        make the mining efforts worthwhile.

        Depending on the type of diamond deposits, the mining
        operations are generally carried out by one of two methods:
        river or open pit mining.

        In river mining, mechanized barges equipped with suction hoses
        up to 10 inches in diameter extract the diamondiferous gravel
        from the riverbed; the suction hose is directed by a diver.
        The gold and diamond-bearing gravel is brought up for
        subsequent mass mechanized screening and washing.

        In open pit mining, the prospected diamondiferous area is
        divided into 10x10 meter parcels. The miners typically work in
        groups of three or four persons using a type of mechanical
        sieve known as a jig or something as a pulsator jig. This is
        used to separate diamonds and other heavy minerals from
        lighter concentrate. The diamondiferous gravel is fed through
        a revolving screen known as a trommel. A series of separation
        screens bearing holes of different sizes, ranging from one to
        1/8 inches in diameter, are used for screening. Running water
        is necessary to carry out the subsequent sorting and washing
        operations. Open pit operations may range up to 15 meters in
        depth.

        In many areas, the recovery of gold and diamond is performed
        with sluice methods. 

        Color and Sizes

        The diamondiferous Venezuelan districts, together with certain
        mining districts of Guyana (formerly British Guiana), Sierra
        Leone, and Borneo, represent one of the most significant
        sources of fancy colored diamonds in the world market;
        reddish, brown-reddish, pinks, blues, blue-green, greens,
        yellow-green, and so on, and their counteless intermediate
        hues. Recently, black diamonds were found in Venezuela and
        were offered at astronomically high prices.

        Colorless diamonds of various qualities and sizes are readily
        available, right on the mining site. Very often the crystals
        are coated with "skins" of green, yellowish, and other colors.
        Diamonds recovered from the Paragua River and its banks are
        characteristically coated with an iron oxide skin. However,
        fine quality gems have been cut from these crystals.

        In spite of the general belief that all natural blue diamonds
        are of type IIb, it is reported that some Venezuelan as well
        as the Guyanese natural blue diamonds are of type I, since
        they contain no boron, neither are they electrically
        conducted. Furthermore, they do not exhibit significant
        absorption/emission infrared spectra.

        Most of the gem-quality diamonds found are up to 1-1.5 carats
        in size in well-formed octahedra, macles, dodecahedra, and
        cubic crystals. El Liberdador, the largest Venezuelan diamond
        found, was recovered in 1942 by Jaime Hudson "Barabbas" while
        working in an old dump at the Surukun area near Icaburu. The
        154 carat stone, also known as Bolivar, was sold for $63,000
        and cut ceremoniously by Harry Winston. It yielded one
        beautiful 40 carat, flawless stone and two smaller stones, one
        18 carat and one 12 carat diamonds. The 40 carat stone was
        sold for $185,000. 

        Production & Marketing 
        It is very difficult to obtain verifiable production figures
        of the total diamond production in Venezuela. Figures on Table
        1 and 2 may be used as an indication only. It is based on the
        diamond production reported to the Ministry of Mines; however,
        the actual figures may very considerably. Nonetheless, diamond
        production in the last few years has increased significantly,
        especially at the diamondiferous zones of Guaniamo and San
        Salvador de Paul.

        The rough diamonds are marketed right at the various mining
        centers through a network of licensed buyers/dealers under the
        supervision of the Ministry of Mines. These centers are mainly
        at Icaburu, San Salvador de Paul, Guaniamo, and Cuidad
        Bolivar. Nearly all the rough diamonds are exported to Belgium
        and Holland. The upper grade and larger diamonds are cut in
        Antwerp; all other grades are cut in Israel, India, and
        elsewhere. Very limited diamond cutting facilities are
        available in Venezuela. The workmanship performed there is
        rated below the international standards.

        Prospects for the Venezuelan fancy color diamond market may be
        termed good. A stable political situation, positive government
        intervention to diamond operations, increased fancy color
        diamond demand, well-controlled diamond prices, updated mining
        technology and equipment, and improved transportation, among
        other factors, contribute to a reasonably reliable and
        effective output of fancy color diamonds. 
 
___________________________________________________________

        All rights reserved. Copyright Ted Themelis Users are
        permitted to download the information for their own private,
        non-commercial use. Any other use or reproduction of this
        document (text or graphics) without the express written
        consent of Ted Themelis themelis AT otenet.gr is strictly
        prohibited. 

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