LUCARA RECOVERS EPIC 2,492 CARAT DIAMOND FROM THE KAROWE MINE
Lucara Diamond Corp. (“Lucara” or the “Company”) is thrilled to announce the recovery of an exceptional 2,492 carat diamond from its Karowe Diamond Mine in Botswana. This remarkable find, one of the largest rough diamonds ever unearthed, was detected and recovered by the Company’s Mega Diamond Recovery (“MDR”) X-ray Transmission (“XRT”) technology, installed in 2017 to identify and preserve large, high-value diamonds. The stone was recovered from the processing of EM/PK(S) kimberlite, the dominant ore type that Lucara will continue to target during the first years of the Company’s underground mining operations.
This discovery underscores Karowe’s reputation as a world-class asset and reaffirms Lucara’s position as a leading producer of large, exceptional diamonds. This latest recovery joins an impressive roster of other significant finds from the mine, including the 1,758 carat Sewelô and the 1,109 carat Lesedi La Rona.
William Lamb, President and CEO of Lucara, commented on this historic discovery: “We are ecstatic about the recovery of this extraordinary 2,492 carat diamond. This find not only showcases the remarkable potential of our Karowe Mine, but also upholds our strategic investment in cutting-edge XRT technology. 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.”
Mr. Lamb added, “This discovery reinforces Karowe’s position as a truly world-class diamond mine and highlights the continued success of our operational and underground development strategy.”
Botswana’s diamond industry delivers wide-ranging socio-economic benefits to the country that extend well beyond the mining sector. Its influence supports national development by funding critical areas such as education and healthcare.
This discovery symbolizes Botswana’s continued ascent as a global leader in diamond production. It represents not only the unparalleled wealth found in Botswana’s soil, but also the remarkable progress the nation has made in developing its diamond industry for the benefit of its citizens.
This news release has been reviewed and approved by Dr. Lauren Freeman, PhD. Pr. Sci. Nat., Vice-President, Mineral Resources of the Company and a “Qualified Person” for the purposes of National Instrument 43-101.
Diamond producer Lucara Diamond Corp sold 76 387 ct of diamonds, generating $41.3-million in revenue, during the second quarter ended June 30.
The company recovered 92 419 ct of diamonds at a grade of 12.9 ct for every 100 t of direct milled ore.
Additionally, 8 349 ct were recovered from processing historic recovery tailings. The company recovered 206 special diamonds, defined as rough diamonds weighing more than 10.8 ct, representing 6.9% by weight of the total recovered carats from the second quarter’s processed ore. This aligns with the company’s expectations, Lucara said.
Noteworthy recoveries during the period included a 491 ct Type IIa diamond, a 225.6 ct Type IIa diamond and a 109 ct Type IIa diamond.
Significant progress was made in shaft sinking for the ventilation and production shafts during the second quarter, with the critical path ventilation shaft ahead of the July 2023 rebase schedule. By the end of the quarter, the production and ventilation shafts had reached depths of 557 m below collar and 550 m below collar, respectively.
Operational highlights from the Karowe mine for the quarter included ore and waste mined of 700 000 t, with ore processed totalling 700 000 t.
Financial highlights for the second quarter revealed operating margins of 67%, compared with 59% in the second quarter of 2023. This strong operating margin is attributed to robust pricing for the company’s larger stones and cost reduction initiatives, supported by a strong dollar.
The operating cost was $26.32/t processed, a 6% decrease from $27.97/t in the second quarter of 2023 and consistent with the $26/t in the first quarter of this year.
Lucara believes the impact of inflationary pressures, particularly in labour, was well-managed by the operation, with a strong dollar offsetting a slight increase in costs compared with the previous period.
Adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) were $18.8-million, up from $16.5-million in the second quarter of 2023, driven by increased revenue and lower operating expenses.
During the second quarter, the company invested $11.2-million into the Karowe Underground Project (KUP), excluding capitalised cash borrowing costs. The ventilation shaft sank 128 m, and development of the 470-level station, located at about 550 m below collar, began.
Production shaft activities included the sinking of 104 m and the completion of three probe hole covers, with no water being intersected. A total of 26 m of lateral development on the 470-level, along with the 470-level station development, was completed.
As of June 30, Lucara reported cash and cash equivalents of $21.9-million and working capital of $21.7-million. The company had drawn $165-million on the $190-million project facility for the KUP, with an additional $25-million drawn on the $30-million working capital facility and a cost overrun reserve account balance of $37.5-million.
The Karowe mine registered no lost-time injuries during the second quarter, taking the mine to more than three years without a lost-time injury.
“Lucara’s performance this quarter reaffirms our position as a leader in the diamond industry. Our . . . safety and operational excellence [record] continues to drive our success, with both our openpit operations and underground construction progressing admirably. The Underground Expansion Project, in particular, is advancing well, with shaft sinking progress surpassing our expectations,” Lucara president and CEO William Lamb said on August 12.
Lucara noted that, in the diamond market, the long-term outlook for natural diamond prices remains positive owing to improving supply and demand dynamics, largely driven by long-term reductions from major producing mines.
However, the market for smaller-sized diamonds remains soft, impacted by a weak Asian market and the rise of laboratory-grown diamonds.
Lucara said demand for larger diamonds over 10.8 ct remained robust, as reflected in the company’s sales.
However, the G7 sanctions on Russian diamonds over 1 ct, effective March this year, have caused some trade delays owing to new regulations requiring these diamonds to be processed through the Antwerp World Diamond Centre for origin verification.
Lucara, with its established operations producing Botswana diamonds, stands to benefit from this heightened focus on origin verification.
Sales of laboratory-grown diamonds increased steadily through 2023 and into this year, with many smaller retail outlets increasingly adopting these diamonds as a product.
In the second quarter, diamond producer De Beers announced that it would cease creating synthetic diamonds and focus on selling natural diamonds. This decision aligns with several major brands confirming they would not market laboratory-grown diamonds.
Lucara said the long-term impact was expected to support the natural diamond market, with a bifurcation between the natural and laboratory-grown diamond markets expected in the medium term.
The company believes that the longer-term market fundamentals for natural diamonds remain positive, as demand is expected to outstrip future supply, which has been declining globally over the past few years.
Canadian miner Lucara Diamond has announced that it expects to sell between $200 million to $230 million worth of diamonds from its Karowe mine in Botswana in 2023 – an increase over its previous forecast of $185-$215 million in 2022, IDEX Online reports.
Lucara also said it expects to sell 385,000 to 415,000 carats (up from 300,000 to 340,000 carats in 2022) and expects to recover 395,000 to 425,000 carats (an increase from 300,000 to 340,000 carats).
Recently, Lucara announced that it has extended its sales agreement with HB Trading to sell +10.8-carat rough diamonds from Karowe for another ten years. Lucara and HB partnered in 2020 to sell Karowe’s large, high-value diamonds “that have historically accounted for about 60% to 70% of its annual revenues,” according to a report by Rough & Polished.
Lucara Diamond Corp. is pleased to announce the recovery of a 1,174.76 carat diamond from its 100% owned Karowe Diamond Mine located in Botswana.
The diamond, measuring 77x55x33mm, is described as a clivage gem of variable quality with significant domains of high-quality white gem material, and was recovered from direct milling of ore sourced from the EM/PK(S) unit of the South Lobe.
The 1,174 carat diamond represents the third +1,000 carat diamond recovered from the South Lobe of the AK6 kimberlite since 2015 including the 1,758 carat Sewelô and 1,109 carat Lesedi La Rona.
The 1,174.76 carat diamond was recovered in the Mega Diamond Recovery XRT circuit. On the same production day, several other diamonds of similar appearance (471 carat, 218 carat, 159 carat) were recovered at the main XRT circuit, indicating the 1,174 diamond was part of a larger diamond with an estimated weight of > 2000 carats.
The MDR is positioned after the primary crusher, ahead of the autogenous mill, and is the first opportunity for diamond recovery within the circuit.
Lucapa Diamond Company has recovered a 215-carat diamond from the Mothae kimberlite mine in Lesotho, Africa.
The discovery is the largest Type IIa D-colour white diamond recovered through the 1.1 million tonnes a year Mothae plant since mining operations commenced in January 2019.
The stone is also the second 200-carat-plus and fifth 100-carat-plus diamond recovered through the plant.
Lucapa managing director Stephen Wetherall said the continued recovery of large diamonds at Mothae validated its recent investment decision to expand capacity at the mine.
The company plans to expand Mothae’s processing capacity by around 45 per cent to 1.6 million tonnes a year.
This is scheduled for completion in the first quarter of 2021.
“Lucapa has now produced 23 (100-carat-plus) diamonds, four of which are greater than 200 carats (across the two mines) and we, together with the (Government of the Kingdom of Lesotho) as mine partner in Lesotho and Endiama and Rosas & Petalas as mine partners in Angola, look forward to many more such exceptional mining recoveries,” Wetherall said.
The Lesotho Government holds a 30 per cent stake in the Mothae mine, with Lucapa holding the remaining 70 per cent.
Lucapa Diamond Company and its partners have announced the recovery of the 18th +100 carat white diamond by Sociedade Mineria Do Lulo (SML) from its Lulo alluvial mine in Angola.
The recovery of this second +100 carat diamond from Mining Block 46 (MB46), a 104 carat D colour white stone, so soon after the 113 carat D colour white stone, indicates the potential for these blocks as the company moves deeper into the southern terraces.
Lucara Diamond Corp. has unearthed a 549-carat white diamond at its Karowe mine, the fourth-largest stone in the history of the Botswana deposit.
The unbroken stone, which is of “exceptional purity,” is the first large diamond Lucara has recovered using its Mega Diamond Recovery (MDR) equipment, the miner said Wednesday. The unit, which the miner commissioned in 2017, is specifically designed to recover large stones early in the extraction process to reduce the risk of breakage.
The rough stone is worth $15 million to $20 million, according to an estimate by Berenberg investment bank. However, it could potentially sell for more, the bank added.
The diamond came from the high-value EM/PK(S) portion of discovery of Karowe’s lucrative south lobe, Lucara noted. The same area yielded a 176-carat, gem-quality stone earlier this year, and was also the source of the 1,758-carat Sewelô, the 1,109-carat Lesedi La Rona and the 813-carat Constellation.
“Lucara is extremely pleased to be starting off 2020 with the recovery of two large, high-quality diamonds that build on the positive momentum generated following the completion of a strong fourth-quarter sale in December,” Lucara CEO Eira Thomas said.
Lucara has retrieved six diamonds over 100 carats since the beginning of the year. It will announce its plans for the sale of the 549-carat and 176-carat diamonds shortly.
The miner’s share price rose 4% in early trading Thursday following the announcement.
Lucara Diamond Corporation has recovered a 327 carat top colour gem diamond from its one hundred percent owned Karowe diamond mine in Botswana.
Eight rough diamonds larger than 100 carats have now been recovered at Karowe since the beginning of the year, including a 472 carat rough diamond announced earlier this month.
Laurence Graff of Graff Jewellers has purchased the 1,109 carat Lesedi La Rona rough Diamond.
Discovered by Canadian mining company Lucara Diamond Corp at the Botswana mine.
The diamond sold for USD $53 million.
The 1,109 gem is the world’s largest High quality rough diamond to be discovered in more than a century and the largest rough diamond in existence today.
Second only to the Cullinan which weighed 3,106.75 carats, and was discovered at the Premier No. 2 mine in , South Africa, on 26 January 1905.
