A tiny Australian mining company just found a very rare blue diamond

The Merlin diamond mine. Supplied.

A very rare blue coloured diamond has been discovered in the Northern Territory.

The Merlin Diamonds company, with a market cap of just $10.4 million, announced the find at its mine about 80km south of Borroloola near the Gulf of Carpentaria. Australia’s largest diamond, a 104.73 carat stone, was discovered at Merlin.

Merlin Diamonds’ share price jumped more than 6% to $0.016.

“Although only a small diamond at 0.124 carats it does demonstrate the potential for valuable coloured diamonds at Merlin,” the company said in a statement to the ASX.

“Blue diamonds are one of the rarest diamond colours and high quality blue diamonds are known to command prices higher than pink diamonds.”

The blue diamond found in the NT. Supplied

Blue diamonds are even rarer than pinks, those being recovered by Rio Tinto at its Argyle mine in Western Australia.

Last month a 8.01 carat blue sold at auction at Sotheby’s for $17.1 million.

The Lucapa Diamond Company, a small miner based in Perth, has been recovering large diamonds in Angola.

Lucapa in February reported finding the largest diamond ever recovered in Angolaa, a 404.2 carat stone, weighing about 80g.

That diamond, the largest recovered by an Australian company, sold for $US16 million ($A22.5 million), an average price of $US55,585 ($A72,682) per carat.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.