Topics worthy of note

(Mineweb.com)

Highland Gold blamed by Russian official for mine fire

The exact cause of the fire has yet to be established but according to first reports it was caused by welding works being undertaken in the shaft. An estimated 64 miners were trapped underground at the time. Thirty-one were quickly evacuated to the surface, 12 bodies have been recovered and 21 miners are missing and still being sought by rescue workers at the site. Highland Gold operates both an open pit at the site and an underground mine, but due to inadequate stope development and a shortage of experienced development miners only 11,761 ounces were reported as recovered at the mine in the six months to June 30 (one-third of the company's production target). With a current market capitalization of GB£260 million, Highland's share price hit peak in February of this year at 330 pence and it has been falling since then (started Friday trading in London 8% down approaching 159).

World diamond prices are softening

The International Diamond Exchange (IDEX) reported this week that world diamond prices are softening due to high jewelry industry debt, combined with slowing diamond demand. For the first time in recent history, the price of 1.5 carat and 2-carat polished diamond “fell below the same period a year ago,” according to IDEX. “In short, the diamond price weakness which first affected the smaller stones has now begun to affect larger stone sizes.” Nevertheless, prices of larger solid diamonds - 4 carats and 5 carats in size, which represents an aggregate of about 1% of the market - continue to show solid gains.