The South African government stated that stones found in KwaHlathi village KwaZulu-Natal province village last month are not diamonds but quartz.
It prompted thousands of people to rush to KwaHlathi village which is located more than 300km southeast of Johannesburg.
But after conducting tests, officials have revealed the stones are quartz crystals, and they are considered less valuable.
The country is already suffering from high levels of economic inequality with a surge in joblessness due to the ongoing coronavirus pandemic.
According to Johns Hopkins University data, South Africa has recorded more covid 19 positive cases than any other country on the continent with 1.8 million confirmed infections and nearly 60,000 deaths reported.