Technical File: Basic concept for valuation of common gemstones in Malawi – Mining Review (July 2015)

The Technical File “Basic concept for valuation of common gemstones in Malawi” featured below was initially published in Malawi’s Mining Review Issue Number 27, July 2015.

The Technical File series is written by a leading Mining and Environmental Management Expert, Grain Malunga (FIMMM).

2015-07 Mining Review Technical File Grain Malunga Basic Concepts for Valuatiion of common gemstones in MW

Basic concept for valuation of common gemstones in Malawi

Abstract

Malawi is believed to be losing foreign exchange earnings because of lack of support to artisanal-small scale mining. Usually gemstone miners are equipped with poor knowledge of gemstone mining, grading and pricing. This paper tries to put into perspective basic concepts of identification, grading and pricing of gemstones.

Introduction

Gemstones are inorganic minerals that are rare, beautiful and durable.  They become precious when cut and polished. They are desirable if they have good colour, good shape, good size and good clarity.

In Malawi common gemstones are sapphire, ruby, aquamarine, tourmaline, zircon, amethyst and agate.

Properties of gemstones

Gemstones can be distinguished from synthetic materials through an analysis of their properties. These may be chemical or physical properties. Synthetic materials include glass and plastic.

Chemical properties

Gemstones are a composition of chemicals expressed by elements and relative number of their atoms. The following are examples of chemical formula for gemstones:2015-07 Mining Review Technical File Grain Malunga Gemstone PropertiesChemical resistance

Durability of gemstones includes resistance to chemical attack. It is also important to note that a few gemstones may be prone to chemical attack. These include pearls and apatite.

The use for chemicals in gemmology is limited because it is destructive especially for carbonate materials such as pearls which effervesce. Use of hydrochloric or nitric acid help detect plastic limitation. Use of micro chemical tests under a microscope or magnifier is favoured as small acid spots are used.

Physical properties

Crystal form

The use of crystals helps to identify certain gemstones, especially those that formed in caves, voids or fractures. Crystals are grouped into classes according to symmetry and number of corners (shapes). 32 shapes or forms have so far been identified.

Here are some of the terms used to describe crystals:

Prismatic:     a crystal with an elongated prism form, e.g. beryl.

Acicular:       needle-like, e.g. tourmaline.

Columnar:    a number of prismatic crystals in parallel growth, e.g. quartz.

Radial:          crystals radiating from a common centre, e.g. tourmaline.

Concentric:   crystals form layers around a nucleus, e.g. malachite.

Massive:        no directional features (such as crystal faces) are exhibited, e.g. turquoise.

Colour and streak

Gemstones can be identified by their colour due to presence of impurities or structural peculiarity. Others produce coloured or colourless powder when scratched or drawn across a plate porcelain plate. This type of powder colour is called streak.  Pyrite produces black colour while malachite produces green colour.

Many well-established gemstones are simply colour varieties of a mineral. A few examples of many are given here:

Mineral Colour Name
Corundum

A1203

Red

Blue

Ruby Sapphire
Beryl

3BeO Al203   6SiO2

Green

Blue   Yellow

Pink

Emerald

Aquamarine

Heliodor

Morganite

Tourmaline B, Al, etc., silicate Red

Blue Colourless

Rubellite

Indicolite

Achroite

Quartz

Si02

Colourless

Mauve Yellow

Rock crystal
Amethyst

Citrine

Dichroism

Some gemstones have the ability to absorb light differently when it passes through the gemstone in different directions during rotation. Those that exhibit two colours are said to be dichroic while those that exhibit more colours are said to be pleochroic. Tourmaline exhibits dichroism.

Lustre

The appearance of a gem as it reflects light is called lustre. Lustre can range from glassy (vitreous) to metallic. Aquamarine is vitreous while gold is metallic. Common examples are shown below:

Lustre Material
Vitreous (like glass) the lustre of ruby, emerald,
Resinous (like resin – greasy) the lustre of amber.
Waxy Turquoise

Quality of gemstones

Quality of gemstones is determined by colour, size, clarity and shape.2015-07 Mining Review Technical File Grain Malunga Aqua, Amethyst, Agate, Ruby Sapphire

Colour

Colour contributes about 60% of the value in any coloured stone. Examination of colour is done in various kinds of light including under fluorescent, incandescent and sunlight. Good stones show good colour if lit above white paper. It has been proved that stones that are back lit and show good colour often display dark colour after being cut so be careful about stones displayed with back light.

Remember use the “white-paper test” for colour quality and density because dichroism and pleochroism may affect the desirability of the colour you prefer in a gemstone.

Size

The size of a gemstone determines the size of cut gemstone that will be a final product. A common rule is that a 1 gram gemstone will produce a 1 carat cut stone.  80% is lost. Please note that 1 gram is equivalent to 5 carats.  The bigger the stone the more carats it will weigh and more value will be obtained from it. Coloured stones are measured in millimetres and sold by carats.

The rule is “never attempt to cob a stone with wrong tools since you will break it into useless pieces and you will introduce more flaws”.  You are advised to use a cobbing hammer.

Clarity

Clarity in gemstones is affected by intensity of flaws in them. Typical flaws include cracks, voids open cleavages and inclusions. These compromise appearance and structural integrity of gemstones. Flaws affect light penetration into gemstones and absorb light and interfere with the optics of a gem. Flaws like inclusions of water bubbles and air voids help to identify origin of gemstones and differentiate them from synthetic material.  The less the flaws, the higher is the price of gemstones and they can be removed during cutting.

Shape

Good stones for cutting should be blocky, chunky and rounded. Any stone outside this description will lead to a lot of waste during cutting or faceting. Flat or twisted faces can as well be sold as industrial material for recovery of elements such as beryllium in beryl or zirconium in zircon.

Simple Toolkit for rough gemstone identification and valuation

Basic tools required for rough gemstone identification and valuation can be obtained under USD4,300.00 or MK2,000, 000.00.  These are; Cobbing hammer, Loupe, Lamp with solid opaque shade, Fluorescent Light, Incandescent Light, Tweezers, Glass of water, White paper, Millimetre gauges, Optivisor binoculars, Gram scales model PJ-600, Carat scales, Chelsea filter, Pocket diffraction grating scale, Dichroscope, Gravity Travel Kit, Gem Shovel, Analogue Faceting machine, Ultratec facet saw kit

Grading and pricing

Gemstones are graded according to quality and size.  These determine the pricing of gemstones. Remember the price of gemstones takes into     account loss during faceting, colour intensity and uniformity and clarity. Generally tradable rough gemstones should be more than 1 gram (5 carats) and with less inclusions.  The price of gemstones is not fixed and depends on willing seller and willing buyer.  Reverse pricing is usually a good method. The Text Box below tries to illustrate the rough price of a ruby:

Adding value to ruby

The process above indicates that a good value of gemstones is in the cut stone. Therefore there is need for miners to go into value addition. Taking into account quality factors given above, a tentative grading system can be devised by miners or traders as per the following example:

GRADE COLOUR CLARITY (%) SIZE (in gm)
I Deep colour >90% clear: Minor visible to no visible inclusions > 1
II Some colours with one dominant deep colour 75 to 80% clear: Light inclusions that may not be avoidable in cutting 1-3
III May have one or more colours 60 to 75% inclusions and will be clouded when cut >3
IV May have one or more colours Heavily included with rock like texture. Good for cabochon >3

Prices for common rough gemstones of Grade I type have an average cost given in the table below. These are indicative prices and selling will be on willing seller/willing buyer arrangement.

GRADE I ROUGH STONE PRICE/GRAM (US$)
Ruby/Saphirre 500
Tourmaline 40
Garnet (pyrope) 10
Garnet (Rhodolite) 40
Aquamarine 26
Agate 35 (US$/Kg)

Conclusion

Gemstone business requires a lot of experience and knowledge in understanding the quality and value of stones. The miner gets a smaller share of the whole cake and therefore there is need to form up cooperatives in order to benefit from economies of scale and be able to acquire lapidary equipment for value addition.

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2 responses to “Technical File: Basic concept for valuation of common gemstones in Malawi – Mining Review (July 2015)

  1. Pingback: Link Roundup for Extractive Industries in Malawi: July 2015 | Mining in Malawi·

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