Aussie Sapphire

Rough Gem Supply
What a difference 6 months makes!  There has been a significant shortage of rough gemstones in most catagories – this has been a gradual trend developing for a considerable time but has really started to bite since December 2008.

REASONS:  A combination of factors, most completely out of the control of the trade but some the direct fault of some in the industry.

• Huge increases in the cost of production (fuel, electricity, parts and supplies, etc) at the same time as only modest increases in rough prices.
• The closure by the Madagascan Goverment of exports of Rough Gems (mainly Sapphire but many others gems as well).  This is probably the biggest news in the industry for many years.  It appears all Gems are to be Cut and Heat Treated in Africa before they can leave (similar to current rules in Sri Lanka prohibiting export of gem rough).  

One must remember that this small island is probably the richest gemstone resource ever discovered and most importantly this is where the largest majority of that “CEYLON” branded Sapphire has come from for some time. 

I would like to hope this works for the financially struggling Africans on the ground but I fear that not much will change.  Already, signs are that the more powerful USA and Indian companies are trying, although with difficulty, to move their cutting operations to this country and carry on as before.

• Enviromental and Farmers rights.  The global weather concerns and the desperate need for food production has really had major effects on production especially in China.  A good friend and major Sapphire miner Alex reports that the local farmers are not allowing them to mine on the productive river flats any longer (most of the easier river beds are already exhausted) so they are forced to mine deeper harder ground.  Mine production in China is still large but much less than even last calendar year.

More interesting Gem News:
Ruby Rumblings - The Ruby game has been in a mess for some time since the “Lead Filled” treatment became almost commonplace.  There has been mountains of Ruby in the market, mainly lower grade Indian product (often large and almost opaque) and lead filled African material.  Unfortunately for the retail customer, the altered Ruby looks very good to the eye but in my strong opinion it just “aint Ruby”!  (Oh I forgot the Berillium treated Ruby as well).

Burma Ruby Dead ?  President  Bush in his “wisdom” has banned the import of Ruby  and Jade from Burma (now known as Myanmar) into the USA starting in September 2008.  This in my opinion is a silly decision based on politics not common sense.  Although there has been a Ban in place since 2003, this latest move is supposed to tie up the loophole of Gems being processed in another country (mainly Thailand).  This is aimed at the Military Goverment but in my opinion will just hurt the individual and long suffering Burmese poor while the rich Generals will see little change.

Just how will it work?  In short it wont!  Any Ruby or Jade already in the USA prior to the cut off date can still be legally sold as Burmese.  Reports from the ground in Thailand show large US based companies pouring as much cash as they can spare into getting stockpiles into their country before the deadline.  I suppose the USA customs will now be able to tell the origin of a Gem just by looking at it.  A difficult job even for the most experienced Gem Labs.  Of course there will now be a lot of Burmese type Ruby coming from other countries or “New Finds”.

Richard Hughes changes jobs:
Richard Hughes, gemologist and author, has resigned as senior staff gemologist for the AGTA, (American Gem Trade Association) to join a jewellery TV company based in Singapore and Bangkok.  Richard has vast knowledge and experience in the Gem world - he seems to be willing to give these alternative methods of selling some support – hopefully he will bring some much needed credibility to the system.  The thought that springs to my mind though is that perhaps the old fashioned bricks and mortar Jewellery stores need to do some catching up or they might die?  Good luck Richard.

Lapidary Gear:
We have had several questions asking if Lapidary supplies will decrease in price because of our high dollar. The answer is simple Yes but No. Confused ?  I dont blame you but the simple fact is freight cost increases have wiped out in most cases more than the gain in currency exchange.  On top of this, all manufacturers face large increases on all the material they use with many increasing our buying prices.  Having said this the choice of where or what to purchase has never been better so shop around and enjoy the savings that come from competition.  We’re pretty confident you wont find a better deal than at Aussie Sapphire.  Just remember, when comparing prices, check if stock is ready to deliver immediately and if any additional costs apply – such as for 220 Volt (a common trap when buying from the US), credit card fees, foreign currency fees and charges, etc.

Tips and Tricks:

• Need storage for your 6″ Faceting Laps, diamond saw blades, etc ? Inexpensive Size 1 padded envelopes are a cheap solution or try CD cases - ideal for your 4″ or 5″ diamond blades.  You can mark each type clearly and avoid contamination.  
• Dull Diamond Blades – if your diamond blade becomes dull try redressing it before you throw it out. There are specific dressing sticks available but a old silicon carbide grinding wheel does the same job cheaper.  Just cut into the wheel a couple of times this removes tiny particles of metal that melt into the Diamond while cutting.  If this doesnt work then there is no Diamond left so your blade is only a drink coaster now.

Website Reviews:
http://www.gemologyonline.com - A great free forum for everything to do with Gems and Lapidary.  Cannot recommend this site highly enough – filled with genuine experts who are genuinely happy to help out with advice and share knowledge.

Those of you familiar with sapphire mining in Australia will know that most is done by small individual operators.  Involvement of public companies has not always been successful with Cluff Resources and Great Northern Resources exiting the sapphire industry to pursue other more lucrative minerals.

While the above mentioned companies have repositioned their business in a purposeful and sensible way, Great Northern in particular having some years of successful mining under their belt, others have had more trouble coping with the particular challenges of the sapphire industry.  A case in point is Australis – this company is currently suspended from the ASX, has been under administration for an extended period and is a good example of what can go wrong.

A new company that plans to list on the stockmarket very soon has released a prospectus with plans to operate in our own region – Glen Innes and Inverell.  The company is Australian Gemstone House - managing director is Pnina Feldman.  EDITED TO ADD:  Please note that we have been requested by Dr Pecover to remove inaccurate material from this post.  The link to the upcoming float on the ASX is no longer valid and so has been edited to point to the AGH website.  The article on the Business Spectator has been removed by that organisation – the comments below are based on reading the hard copy in the Australian Financial Review – any issues with the accuracy of that article should be taken up with the journalist concerned.

There have been some questions raised with an article in the Financial Review this week – we read the article from the paper itself but you need to be a subscriber to read it online – see this link from the Business Spectator to read more about the issues.  We should point out that the miners mentioned in this article are not us, we have had no contact with the writers of the article and are making no statement on the upcoming float – it is for others to assess the prospectus.  Obviously we are following these developments with great interest.

Finally, we should mention Van Dieman Mines which have been operating in Tasmania at a development stage for some time.  It is our understanding that this company is yet to commence commercial operation as a sapphire/tin miner with the most recent update in late August.  One interesting development is the joint venture with Columbia Gem House to brand sapphire from this operation as “Tasmin Blue” – hopefully this will succeed although we suggest that Columbia could develop this market a lot quicker by talking to those actually producing sapphire now – proven miners who can get gems to the market consistently and cost-effectively.

While the public companies may have the profile, it is often the private operators who can do the job more efficiently since we can just get in there and concentrate on production rather than stock market announcements.  Perhaps Australian Gemstone House and Van Dieman Mines will succeed where others have failed – we will all just have to wait and see.

Despite the challenging economic times, we have actually had a few really good weeks in sales with excellent interest in machinery in particular.

Within the last 3 weeks, have sold two brand new Gemmasta faceting machines and two Indian double-plate machines.  We have a replacement Gemmasta arriving in the next few days and a new Facetron in stock as well as one second hand GF4 Gemmasta.  Remember, we aim to keep machines in stock ready for immediate delivery as we dont like waiting lists either. 

Long waiting times for faceting machine delivery seems to be common in the industry but you wont have this problem with Gemmasta or Facetron.  Think of it this way:  if you have to wait 6 weeks or more just to get the machine, what will happen if you need repairs, spare parts or factory support.  We prefer to deal with companies who take customer support seriously.

We have new stock of tumblers now – Lortone (3A and 33B) and Raytech (Tumble-Vibe 5) with some new mini-sonics arriving soon.  We have some new trim saws in stock and some new products being worked on right now.  Response from the website has been fantastic and is getting better and better so our ultimate aim is to become the one-stop online shop for lapidary equipment and supplies.

One exciting new product line to be added to the website soon is a selection of books on gems and faceting – these are expected to arrive any day now and will be listed as soon as possible.  Check here for an announcement on this.  We hope this will be well-supported by our customers as we have had a number of enquiries for these.

Mining is becoming ever more challenging with the high cost of fuel just about making it impossible to break even on the job – not really sure what the future holds here but we’ll hang in there as long as we can.  Andrew will be overseas for the next couple of weeks checking on market conditions – selling some sapphire and hopefully buying some interesting new things for the website so make sure you take a look when he gets back.  If you have any special request, email us now so he can keep an eye out.

Cheers for now from Andrew and Leah Lane (www.aussiesapphire.com.au)

Have just finished a tidy up of our Faceting Laps section - we hope it will now be easier for our customers to find which option best suits them.  We have a wide range of lap types and grits with some fantastic kits put together (8 kits to choose from).  Excellent quality products at already discounted prices – buy in kit form and you get even more off the price.

As we speak, we all know just how inflation is really biting and it hurts.  Our last lot of Diesel was $1.71 per litre and rising constantly, steel price rises of over 50% since Jan 08 and fertiliser and chemical costs for our farming are through the roof.  Bottom line is that everyone is affected!

Prices are on the rise everywhere.  This includes items such as Laps, Faceting Machines, Dops – almost anything that involves metal or expensive import freight will be going up in price as old stock runs out.  We try to keep prices down where we can so existing stock will remain at the old prices until we run out.  A great time to buy before prices go up.

We have one new stock Facetron Faceting machine at the old cost of just $3,500 AUD – the next machine will be a couple of hundred $$ more due to a factory price increase in April.  The Gemmasta at $3,900 is also good buying with the factory absorbing cost increases in metal as long as they can.  In all we have 4 complete machines in the storeroom (including one great second hand Gemmasta) so be quick to check these out. 

LAYBY:  we can, to approved customers, offer a Layby option on faceting machines (or our more valuable gems/parcels).  As a guide, purchases must total at least $1,000 AUD and be paid off in 4 equal monthly payments – if you are interested, please ask as you may be eligible (conditions apply, no interest!)

Mining continues although it becomes more challenging all the time.  Although bulk rough prices have increased about 40% since December 2007 mainly due to shortage issues, we are still faced with “mine run” prices around 10% below the levels just prior to September 11 (2001) when everything crashed around us. 

I hate to sit down and work out just how much the cost of production has risen in that 7 years - needless to say, it’s a damn lot.   Given that our costs of production are much much higher and prices received actually lower, it seems crazy that there are still a couple of us still persevering in the industry.  Mining for Sapphire in Australia remains marginal at best at current prices.

Thanks to you, our customers, Aussie Sapphire has continued to grow and prosper keeping Jobs in town so thanks for the support!

So I guess the main message is clear – old stock of machines, and accessories along with selected cut gems all represent a good buy.  Prices will rise and the value will hold well – if you’ve been considering a purchase, it might be a good time to get serious.

As always contact us if you cant find what you need online.  If you get a better quote from an Australian supplier, ask us – we will certainly try and match or better it if possible.  If you have any suggestions or comments, just mail them through.

Stay well and best wishes from Andrew and Leah Lane (www.aussiesapphire.com.au)

Noticed this article in the Inverell Times last week describing a spectacular find at 7 Oaks.

Brett and Sasha McKinnon had been camping at 7 Oaks fossicking ground for almost a week when they made the find of a lifetime.  The Port Macquarie couple found a blue 42.13-carat sapphire on the second last day of their stay at 7 Oaks - the biggest find ever made by a fossicker at the property.

The sapphire was found in a pile of sapphire wash at the property using sieves, and Peter Black of 7 Oaks said it was an outstanding find.  “The stone is an absolute monster, it isn’t the biggest stone found at 7 Oaks but is certainly the biggest by a fossicking visitor,”

Peter estimated the stone could fetch up to $5000 from a collector or could be cut into two stones by a jeweller.  Just goes to show that there are still good finds out there for those who are prepared to put the work in.  Congratulations to those two lucky fossickers.

See more information about 7 Oaks at their website or check out the Aussie Sapphire fossicking site section for other choices in the area.

cheers from Andrew and Leah (www.aussiesapphire.com.au)

We know it’s been a while but we finally managed to find time to list a few new pieces of sapphire rough.  Just goes to show you’ve got to be quick though as one of our regulars snapped up two nice bits literally only minutes after they went live.  Didnt even have a chance to get this post up first so dont wait too long and check out our rough sapphire catalogue. 

Note that we are noticing a general shortage of rough in the marketplace.  Unfortunately, this has not yet translated into higher prices for cut gems probably due to challenging economic conditions faced by USA.  However we do not see any likelihood that prices for rough will decrease given the difficult times faced by miners worldwide.  Our cost of mining has skyrocketed in the past year with onerous government regulation making things extremely difficult – we are seeing these trends elsewhere also so gem cutters should be prepared to pay more for facet rough into the future.

On a more positive note, we have just sourced a new parcel of tourmaline rough at reasonable prices.  We have graded this up today and will be listing some as soon as possible ranging in price from $6 to $20 per carat. 

cheers for now from Aussie Sapphire

The draft field trip program for Minerama has just been received from the field trip convenor – John Paix.  This is a draft version; we are always dependent on good weather conditions to run these or any other trips. The weather has been cooler and wetter this summer so far and it takes very little rain to make the creeks rise and areas to become inaccessible.

See the detailed trip instructions on the website for more information.

Remember – tickets are on sale at the rear of the services club where Minerama is held from 8 am Thursday 9th. Tickets are sold on a daily basis and are not available in advance. They will cost $10 for adults and $2 for school age children this year.

Thursday 6th March.
YARROW CREEK. (Garnet Corner) Sapphire, pyrope garnet, zircon, quartz crystal. This is a location we have visited during Minerama for several years. It has yielded good results and should continue to do so for those equipped with the right tools (especially yabby pumps, long handled shovels and crowbars). Many good sapphires and garnets have come from here.

Friday 7th March.
YARROW CREEK: (The Crossing) A location not previously visited on a Minerama trip. Minerals as for Garnet Corner. The proper tools are essential here.
KINGSGATE MINES: This is a rare opportunity to visit an active mining area, courtesy of the mining company. It is the classic location for quartz crystals and bismuth and molybdenite. There will be limited opportunities for collecting. Numbers will be limited to 20.
THREE WATERS on Reddestone Creek. This is a new area for Minerama. Reddestone Creek is rich in sapphire and zircon.

Saturday 8th March.
YARROW CREEK: (The Blockup) Another location on the creek. Minerals as for Garnet Corner.
KINGSGATE MINES: As for Friday.
LONEWOOD on Reddestone Creek. The same locality as the last three years. Some very fine sapphires and zircons have been found here.
EMMAVILLE area: A visit to old mining areas near Emmaville for mineral specimens.

Sunday 9th March.
YARROW CREEK: (The Old Mine area). Another location for sapphire, zircon, garnet and quartz
TINGHA SANDS AND STANNIFER: Classic localities for rutilated quartz (grass stone) and quartz jelly beans. Approximately 80 km drive each way.

MONDAY 10th March.
BACK CREEK: (Pinkett area) An area we have not visited for several years. Quartz crystal, sapphire, zircon, topaz and black tourmaline.
PRETTY VALLEY: A location we have been visiting since 1991 and still producing sapphire, zircon, topaz and excellent quartz. Anyone can find small gems here. Limited to 25 because of the small area involved and the limited water flow in the gully.

A while back, we received an order to provide a sapphire for an engagement ring – this is one of our favourite jobs and we are always pleased to try and find something suitable for the project.  Hans Meevis, the goldsmith is an extremely talented guy and the result is fantastic as you can see below:

He has written about the project on his blog: Lil’Ol’Sis’ Engagement Ring.  His stuff is amazing and readers are encouraged to see more of his work at his main website www.meevis.com - his work with unusual metals such as purple gold and titanium is particularly interesting.

So this well travelled sapphire has gone from our mine in northern NSW, over to Perth, sent on to St Maarten (Netherlands Antilles in the Caribbean) and is just about to be sent back to Australia to the “husband to be”.  Congratulations to the happy couple on your engagement and thank you for choosing an Aussie Sapphire (thanks also to Hans for doing such a great job with it).

Cheers from Andrew and Leah (www.aussiesapphire.com.au)

While sorting some small sapphire mine run recently, came across this strange piece of sapphire. Only a small piece and very flat so not cuttable but interesting to collectors who like gems that are a little unusual. Three very distinct patches of colour – blue, red and almost clear (slightly yellowish).

Click on the images to see a larger version of the photos – the lower one shows how thin and flat this piece is but the colours are very unusual – a definite tricolor sapphire.

Cheers for now from Andrew and Leah (Aussie Sapphire - remember to check the website for lots of great Christmas gift ideas - courier delivery is available so you can be sure your parcel will arrive in time)

Found this very interesting slideshow on sapphire mining in Madagascar recently – by Lihee Avidan and Mat Heywood for the BBC. 

Audio Slideshow – BBC – Sapphire Miners

Highlighting the dangers of mining and the struggle faced by many miners to make a decent living, both the photographs and audio tell a fascinating story.  This image from the slide show (source at above link) is an example of a family group operating a small mine (a dangerous single shaft with inadequate ventilation or safety supports).  The Ministry of Energy & Mining representative notes the high death rates on the mining fields as a major problem. The accompanying article “Madagascar’s Sapphire Rush” by Jonny Hogg for the BBC is also well worth reading.   Some difficult issues that should be considered the next time you see that beautiful Ceylon sapphire in the jewellers shop – a stone which most likely came from Madagascar.

 cheer for now from Andrew and Leah Lane (www.aussiesapphire.com.au)