Dolat Ventures to target INDIA in expansion on diamond and gold projects in Sierra Leone
Wednesday, Nov 07, 2012
NEW YORK, Nov. 6, 2012 /PRNewswire/ -- Dolat Ventures Inc. (OTC: DOLV) a diamond development company focused on its mining projects in West Africa, is pleased to announce its plans to target India as a new resource for potential revenue. Indians have long been the world's biggest buyers of gold — so much so that changes in their consumption tip the scales of global demand. Recently, those scales have tipped down as China surpassed India in overall gold demand, according to the World Gold Council, largely because by the end of the second quarter, gold jewelry demand in India had dropped 30 percent year-over-year, where wealthy Indians have discovered diamonds.
Dolat Ventures reports that, "India has become the fastest-growing market for De Beers. It's a priority market for De Beers," said Forevermark CEO Stephen Lussier. Forevermark is a subsidiary of the De Beers Group, the largest supplier of diamonds in the world. "It's also the most extravagant market in terms of its diamond designs" he added.
India's 'diamond discovery,' isn't just about the bling. It is being driven by price moves and currency devaluation. Persistently high gold prices over the past year have been coupled with a depreciation of the rupee against the dollar. In fact, the rupee has lost 25 percent of its value against the dollar over the same period. This exacerbated the price of gold for Indians, because gold is priced in dollars. At the same time, diamonds became cheaper. By the end of the second quarter of this year, the average asking price for 1-carat diamonds dropped about 18 percent year-over-year, according to the Rapaport Diamond Trade Index. In dollar terms, diamond dealers can now purchase a 1-carat diamond for about $8,384, down from $9,175 last year, according to Rapaport's index.
In the past few years, diamond marketing campaigns have targeted India's wedding market. "Before De Beers started marketing in India, the market was entirely gold focused. Now De Beers spends $4 to $5 million per year on consumer marketing in India," said Forevermark CEO Lussier.
Over the last five years, Lussier adds that De Beers' marketing investment has been rewarded with over 20 to 30 percent sales growth "year in and year out."
Mining producers and wholesalers such as Dolat Ventures are focused on gaining market share with the main Indian diamond jeweler and retailer Tanishq, already known to dominate the largest cities, Mumbai and Delhi. Indians say Tanishq's popularity is due to its modern designs, coveted by India's younger generation. In affluent families, the mother and father of the bride give custom-made jewelry sets as a ceremonial gift to their daughter. The importance of this gift is essentially based in traditional Hindu theology, which holds that the bride is being sent to the groom's family. Depending on the family wealth, traditional gifts can consist of gold only, but the trend among the affluent has turned to diamonds.
Dovid Hauck, President of Dolat Ventures commented today, "Our future results may be very exciting and add to the gold trend which the Company has discovered. We continue to focused on expanding our diamond resources at the Baimbawai Pool on the Sewa River, which has shown exciting potential to date. At current grades and diamond values, the Baimbawai Pool on the Sewa River potentially maybe one of the highest known value per ton kimberlites globally. Dolat is also in preliminary negotiations with other mines within 10 kilometers from Dolat's mines that have an interest in being acquired. There is plenty of opportunity for expansion in diamonds and into gold and other metals. We intend to be drilling and upgrading the resource statement during the fourth quarter of this year and I look forward to updating shareholders as we progress."
About Dolat Ventures Inc. (OTC: DOLV) www.dove-diamonds.com
Dolat Ventures Inc. through its wholly owned subsidiary Dove Diamonds & Mining intends to sell, market, cut and distribute its diamonds and gems around the world. Dolat's Millenium Mining is located in the Sewa River, located in the heart of Sierra Leone, West Africa formed by the junction of the Bagbe and Bafi rivers; it flows 150 mi (240 km) to join the Waanje River and form the Kittam, which empties into the Atlantic Ocean. The country's most important commercial river, it has historically produced the bulk of Sierra Leone's diamond exports. The company intends to wholesale its rough and uncut diamonds globally.
Source: Dolat Ventures Inc.