Lucara records strong quarter marked by exceptional discoveries, shaft sinking progress

TSX-listed Lucara Diamond Corp recovered two exceptional diamonds larger than 1 000 ct and sold 116 221 ct of diamonds in the third quarter ended September 30, generating revenue of $44.3-million.

The company recovered 104 390 ct from its Karowe mine, in Botswana. This included 96 597 ct from direct ore feed from the pit and stockpiles, at a recovered grade of 13.4 carats per hundred tonnes (cpht) and an additional 7 793 ct recovered from the processing of historic recovery tailings.

A total of 244 special diamonds – rough diamonds weighing more than 10.8 ct – were recovered, including 12 diamonds greater than 100 ct, including three greater than 300 ct each.

The recovery of the 244 special diamonds equated to 11.28% by weight of the total recovered carats from ore processed during the quarter. This weight percentage exceeded the company’s expectations and was heavily influenced by the recovery of the exceptional 2 488 ct and 1 094 ct diamonds.

Ore and waste mined at the Karowe mine were 800 000 t and 200 000 t, respectively.

Lucara processed 700 000 t of ore in the quarter.

The Karowe mine registered no lost-time injuries during the period, and as at period end, had operated for over three years without a lost-time injury.

Meanwhile, Lucara says significant progress was also made in shaft sinking and lateral development connecting the production and ventilation shafts of the Karowe underground project.

At the end of the quarter, the production shaft had reached a depth of 686 m and the ventilation shaft a depth of 582 m below surface.

During the period, Lucara invested $24.1-million into the Karowe underground project, excluding capitalised cash borrowing costs.

Lucara had cash and cash equivalents of $23.6-million at period end, and working capital of $22.3-million.

President and CEO William Lamb says that, looking forward, the company’s strategic positioning in the diamond sector remains robust.

“The ongoing development of the Karowe underground project represents a pivotal investment in our future, designed to extend mine life and maintain our exceptional stone production profile.

“As we progress through this transformative period, we remain focused on executing our strategic objectives while maintaining our position as an industry leader in the recovery and marketing of exceptional diamonds. The recent discoveries reinforce our confidence in Karowe's potential and our ability to deliver long-term value to our shareholders,” he comments.