An Australia-based company’s plans to look for diamonds in rural northern Larimer County have been delayed because of economic concerns.
DiamonEx was planning to do exploratory drilling in a 3-acre parcel in North Rabbit Creek Valley, about 9 miles west of U.S. 287. The area, also known as Sloan Ranch, could yield thousands of diamonds and be at least as successful as the company’s Lerala Diamond Mine in Botswana, according to the company.
Officials had been hoping to approach Larimer County for a drilling permit that could lead to a full-scale excavation project. But last week the company told the county that it would delay its application because of “current market conditions.”
An application may be submitted in three to four months, the company said. A DiamonEx official couldn’t be reached for comment.
A watchdog group says a significant drop in the value of the Australian dollar relative to the U.S. dollar and a drop in the value of diamonds are the reasons why the company is pulling back.
Lori Drew and her husband, Jay Stovall, who head up Leave Our Valley Alone Forever, claim that a diamond operation would destroy the bucolic nature of the valley.
They say DiamonEx is expected to receive only $20 per carat for its Lerala diamonds instead of the $96 per carat it had previously predicted for its collection of 10,000 carats.
The couple vows to stay vigilant should DiamonEx submit an application.
“Should DiamonEx obtain sufficient capital from new investors, partner with another company, sell their interests to a company that is financially capable, or if the ‘market conditions’ become right again, the Sloan project could still be pursued,” Stovall said.
Monte Whaley: 720-929-0907 or mwhaley@denverpost.com
