The discovery of a fist-sized diamond in Botswana was announced on Wednesday by Canadian mining company Lucara Diamond Corp (OTC:LUCRF).

At 2,492-carats, the stone is likely the second-largest gem-quality diamond ever uncovered. It was found at the Karowe diamond mine, which is owned by the company.

Weighing over 1 pound, the newly found diamond has not yet been given a name. Naming large stones is a traditional practice for exceptionally valuable finds. It was unveiled on Thursday at Botswana President Mokgweetsi Masisi's office, ABC News reported.

Photo courtesy of Lucara.

Botswana is the second-largest producer of diamond stones after Russia.

The value of the stone will depend on whether it can be cut into smaller, pure pieces. A diamond half the size called "Lesedi La Rona," found in the same mine in 2017, was sold to a British jeweler for $53 million.

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The discovery, the company said, is a result of the use of "cutting-edge" X-ray transmission technology which allows the mine to identify large stones without the need to break them from the excess rock material.

"The ability to recover such a massive, high-quality stone intact demonstrates the effectiveness of our approach to diamond recovery and our commitment to maximizing value for our shareholders and stakeholders," said President and CEO William Lamb.

This has allowed Lucara to find at least five other diamonds of above 1000 carats since 2019 in the same mine, including 1758 carat "Sewelô," which was sold to Louis Vuitton for an undisclosed amount. Louis Vuitton is owned by luxury and fashion giant LVMH Moet Hennessy Louis Vuitton SA Unsponsored ADR (OTC:LVMUY).

The largest gem-quality diamond ever found, of 3,106 carats, was unearthed in neighboring South Africa in 1905 and was named the "Cullinan Diamond" in honor of the mine's owner Thomas Cullinan. It was gifted to British King Edward VII in 1907 and cut into several smaller gems that are now either part of the country's Crown Jewels or owned by the royal family.

Bigger pure diamonds have been found, including "Sergio", which was 3167 carats but was not gem-quality, rather what is referred to as a black diamond. It was dug up in 1895 in Brazil and used for industrial machine parts.

The broader mining sector has experienced a seesaw pattern this year. Last week, gold reached its highest price in history causing several mining stocks to move.

SPDR S&P Metals & Mining ETF (NYSE:XME), which covers primarily steel mining but also precious metals to a lesser degree, is down 5.7% in the last month but up 4.4% in the last six months.

SPDR S&P Metals & Mining ETF (NYSE:XME) is down 2.8% in the last month and 2% in the past six months.

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Photo courtesy of Lucara.