SourcingMar 02, 2023
Rio Tinto Making $40M Investment in Diavik Diamond MineSourcingMar 23, 2023
Burgundy Diamond Backing Out of Ellendale Mine Deal
Burgundy has opted not to exercise its option to buy the mining claims Gibb River Diamonds currently owns.
Rough yellow diamonds from the Ellendale mine in Western Australia. Burgundy Diamond Mines Ltd. announced this week it no longer plans to buy Gibb River Diamond’s claims at the mining site, and will cease all activity there immediately.
Perth, Australia—Burgundy Diamond Mines Ltd. announced this week it is abandoning its plan to buy a portion of the Ellendale diamond mine in Western Australia.
Burgundy signed a two-year option deed on the site with Gibb River Diamonds in March 2021. The deal called for Burgundy to acquire 100 percent of Gibb River’s Ellendale claims as well as Blina, an alluvial diamond deposit that lies just northwest of Ellendale.
On Monday, Burgundy announced it had opted not to exercise the option deed and would be ceasing development of the project immediately.
CEO Kim Truter said the decision was in the “best interests of shareholders in line with the strategic direction of the company.”
Related stories will be right here …
Burgundy signed a two-year option deed on the site with Gibb River Diamonds in March 2021. The deal called for Burgundy to acquire 100 percent of Gibb River’s Ellendale claims as well as Blina, an alluvial diamond deposit that lies just northwest of Ellendale.
On Monday, Burgundy announced it had opted not to exercise the option deed and would be ceasing development of the project immediately.
CEO Kim Truter said the decision was in the “best interests of shareholders in line with the strategic direction of the company.”
Burgundy’s decision comes just a week after the mining company announced it has entered into an agreement to buy the Ekati Diamond Mine in Canada’s Northwest Territories from Arctic Canadian Holdings LLC.
The deal is valued at $136 million.
When announcing the deal, Burgundy seemed bullish on owning both mines, noting the acquisition of Ekati would make it one of the largest stock exchange-listed diamond companies in the world.
“The acquisition of Ekati is complementary to Burgundy,” Truter said at the time. “We’ve been purchasing rough fancy-colored diamonds from Ekati in recent years, then cutting and polishing them in our facilities in Perth to go into high-end jewelry designs, as part of our vertically integrated business model.”
Taking a cue from Rio Tinto and its Argyle Pink Diamond brand, Burgundy also had developed a brand for the mine’s output, Maison Mazerea.
On Monday, however, the mining company said it instead has opted to focus solely on completing the acquisition and integration of Ekati into its portfolio.
The company declined to elaborate on its decision but did confirm to National Jeweler it will retain its cutting and polishing facility in Perth, Western Australia, which it called a “key component” of its vertically integrated business model.
Ellendale is located in the Western Australia’s West Kimberley region, a few hundred miles west of Rio Tinto’s Argyle Diamond Mine, the famous source of pink diamonds that closed in 2020.
Ellendale is known for producing fancy yellow diamonds that once supplied retailers worldwide, including Tiffany & Co.
According to a 2013 issue of Gems & Gemology, the Gemological Institute of America’s quarterly journal, the first reported findings of diamonds at Ellendale came in 1976.
The site holds a special place in diamond history, as it was there scientists discovered that olivine lamproite could serve as a host rock for diamond. (Prior to the discovery of diamonds at Ellendale, it was believed only kimberlite rock could host diamonds.)
Large-scale mining didn’t start until 2002 when Kimberley Diamonds Ltd. gained control of Ellendale.
Kimberley mined the site until closing it in 2015, citing a decline in the size and quality of the diamonds it was recovering.
In late 2019, the Australian government awarded mining claims for the site to two companies, Gibb River and another Australian company, India Bore Diamond Holdings.
In a statement issued Monday, Gibb River said it is “very excited” about Burgundy’s decision to exit the project as it believes Ellendale has “excellent potential as a company-making standalone diamond development project.”
The company said Executive Chairman Jim Richards recently returned from visiting the mining site and it “very much looks forward to progressing plans for the next phase of development at Ellendale.”
Further details will be released at a later date.
More on Sourcing
The Latest
Supplier BulletinJul 02, 2026
Elevating Retail Showcases with Today's Necklace & Bracelet TrendsSponsored by Rio Grande Jewelry Supply
TrendsJul 02, 2026
Oscar Heyman’s Flag Brooch Celebrates AmericaThe American jewelry house, founded by Latvian immigrants, has been creating American flag brooches since 1917.
IndependentsJul 02, 2026
D. Geller & Son Partners with KSU Art Students on Store MuralThe artwork celebrates the Atlanta jeweler’s legacy and symbolizes its commitment to supporting local artists and its community.
Brought to you by
Wedding Band Trends 2026: Personalization Takes Center StageColored gemstones, artisan finishes, mixed metals, and meaningful details are shaping demand in bridal jewelry.
Events & AwardsJul 02, 2026
Stratus Estate Buyers Offers Jewelers Turnkey Buying EventsIts team can evaluate jewelry and watches, as well as luxury handbags, artwork, and collectibles.
Weekly QuizJul 01, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
SurveysJul 01, 2026
Consumer Confidence Ticks Up in JuneFalling oil prices were a factor in the slight month-over-month improvement.
CollectionsJul 01, 2026
Rio Grande Launches First Finished Bridal CollectionThe new offering comprises more than 120 bridal and engagement ring styles with natural and lab-grown diamonds.
Brought to you by
Building the Future of Jewelry Retail: DCA Expands Education, Leadership Development, and Workforce SolutionsDCA is preparing the next generation of professionals by supporting workforce development, leadership growth, and career advancement.
WatchesJul 01, 2026
Rolex Unveils Clock at Rockefeller CenterThe clock is part of the celebration for the soon-to-open Rolex headquarters on New York City’s Fifth Avenue.
IndependentsJul 01, 2026
Kristen Cannon of Valobra Master Jewelers Dies at 49The public relations professional is remembered for her benevolent generosity and unwavering commitment to those around her.
WatchesJun 30, 2026
Pokémon Fans Will Want to Catch This New G-Shock WatchThe new watch commemorates Pokémon’s 30th anniversary.
MajorsJun 30, 2026
Saks Global Emerges From Bankruptcy With New NameThe luxury retailer is now called Exemplar Luxury Group.
CollectionsJun 30, 2026
Jade Ruzzo’s New Collection Embodies the Art of Being a LadyThe “Lady” collection is a new take on old beauty standards with gemstone-adorned hair pins and combs, a compact mirror necklace, and more.
GradingJun 30, 2026
AGS Opens 2026 Recertification ExamAll active members who earned their credential or designation before Dec. 1, 2025, are required to recertify.
CollectionsJun 29, 2026
Briony Raymond’s New Collection Is a ‘Carousel’ of Hard StonesThe new jewelry collection uses a colorful palette of onyx, malachite, tiger’s eye, mother-of-pearl, lapis, turquoise, and coral.
IndependentsJun 29, 2026
Look Inside Lee Michaels’ Revamped Mississippi FlagshipLee Michaels Fine Jewelry is celebrating 30 years in the Ridgeland, Mississippi community.
GradingJun 29, 2026
National Rarities Announces New Gemology ManagerSean Milliner has joined the company.
GradingJun 29, 2026
GIA to Open New London CampusClasses will begin in August at GIA’s new Canary Wharf location.
AuctionsJun 26, 2026
‘Hogback’ Diamond Ring Finds a New Home A ring set with “hogback” diamonds, an early stone cut dating to around the 16th century, sold for more than $20,000 at a U.K. auction.
CollectionsJun 26, 2026
Strength Is Sharpened Into Beauty in Kris Averi’s ‘Prism Thorn’ RingThe rainbow version of the ring, our Piece of the Week, features angel-cut, octahedral lab-grown sapphires designed to be worn as armor.
MajorsJun 26, 2026
Rembrandt Charms Debuts ‘Charms That Give Back’The new initiative donates a portion of the proceeds from select charms to charitable causes.
TrendsJun 26, 2026
Bernard James Celebrates Knicks’ Win with RingThe Brooklyn-based jeweler created a limited-edition version of its “Aura” eternity band, set with gemstones in the team’s colors.
SourcingJun 25, 2026
ICA Names Brandee Dallow as CEODallow will lead the International Colored Gemstone Association, effective July 6.
EditorsJun 25, 2026
Out & About: How Jewelers Mutual, SCAD Are Tackling the Bench Jeweler ShortageSenior Editor Lenore Fedow headed to Savannah to learn more about the 10-year, $10 million partnership between JM and the art school.
CollectionsJun 25, 2026
Mejuri Experiments With SteelIts new capsule jewelry collection features gold-finished stainless steel pieces designed for a maximalist look without a luxury price tag.
Events & AwardsJun 25, 2026
Watches & Wonders Announces 2027 DatesThe week-long event in Geneva is slated for April 2027.
SourcingJun 25, 2026
Annie Doresca, Mark Smelzer, Sara Yood Join Gem Legacy BoardThe three industry leaders bring financial, communications, and legal expertise to the nonprofit’s board of directors.
