Lucara Diamond Corp. has recovered a 1,080.1-carat rough diamond from its Karowe mine in Botswana, its fourth topping the 1,000-carat mark in eight years.
The white, type-IIA stone came from the site’s south lobe, known for its large, high-quality rough, Lucara said Wednesday.
The diamond showed up in the miner’s Coarse XRT unit, a recovery circuit that uses X-ray technology to identify huge stones in large pieces of ore before they’re broken up.
Since 2015, the south lobe of Karowe’s AK6 kimberlite has yielded three other diamonds in this size class: the 1,109-carat Lesedi La Rona that year, the 1,758-carat Sewelô in 2019, and a 1,174.76-carat clivage diamond in 2021.
“Lucara is extremely pleased to be reporting the recovery of another large, high-quality gem diamond in excess of 1,000 carats,” said Lucara CEO Eira Thomas on Wednesday. “As we progress mining deeper in the open pit and transition to underground mining exclusively in the south lobe, the preponderance of large, high-value stones is increasing.”
The miner is investing $683 million in Karowe’s underground expansion — a move it says will extend the mine’s life until at least 2040, 15 years beyond the original 2025 closure date.
Lucara Diamond Corp. said it has secured $220 million in financing to help take the Karowe Mine in Botswana underground and extend its life by about 20 years.
Karowe is responsible for producing some of the most significant diamonds recovered in recent years, including the 1,109-carat “Lesedi La Rona,” which Graff bought for $53 million, and a 1,758-carat diamond that Louis Vuitton is turning into jewelry.
The credit-approved senior debt facilities include two tranches: $170 million to go toward the development of the underground mine and $50 million to support the ongoing operation of the open pit.
The underground expansion has an estimated capital cost of $514 million and is expected to take five years. The balance of development capital for the project is expected to come from cash flow from the mine’s ongoing open-pit operations.
In a statement announcing the financing, Lucara President and CEO Eira Thomas called securing the financing “an important achievement for Lucara and a strong endorsement of our underground expansion plans.” She said the loans will supplement the cash flow from the open-pit portion of Karowe for the next five years and will extend the life of the mine from 2025 to at least 2040.
The five lenders on the $220 million financing facility for Lucara are: ING Bank N.V., Natixis, the London branch of Societe Generale, Africa Finance Corp., and Afreximbank. Thomas described them as having “significant mining and metals track records and experience in Africa.”
Closing on the facilities is subject to completion of definitive documentation and the satisfaction of certain terms and conditions, including Know Your Customer (KYC) checks.
The target closing date for the financing package is mid-2021, with financing expected to be in place by the second half of the year.
Lucara made the financing announcement the day before it released its first-quarter 2021 results.
Revenues totaled $53.1 million, or $579 per carat sold, for the miner in Q1. Net income was $3.4 million.
That is a significant improvement over Q1 2020, when the onset of the pandemic limited sales to $34.1 million and caused Lucara to record a loss of $3.2 million.
First-quarter 2021 results also are up when compared with 2019, when Lucara reported revenues of $48.7 million, or $512 per carat sold. Net income for the latter, however, was higher at $7.4 million.
The company said overall, the diamond market started 2021 in its healthiest position in five years following strong holiday seasons in the United States and China, and careful rough supply management by producers, which has helped to recalibrate polished inventories.
Lucara Diamond Corp. said it has secured $220 million in financing to help take the Karowe Mine in Botswana underground and extend its life by about 20 years.
Karowe is responsible for producing some of the most significant diamonds recovered in recent years, including the 1,109-carat “Lesedi La Rona,” which Graff bought for $53 million, and a 1,758-carat diamond that Louis Vuitton is turning into jewelry.
The credit-approved senior debt facilities include two tranches: $170 million to go toward the development of the underground mine and $50 million to support the ongoing operation of the open pit.
The underground expansion has an estimated capital cost of $514 million and is expected to take five years. The balance of development capital for the project is expected to come from cash flow from the mine’s ongoing open-pit operations.
In a statement announcing the financing, Lucara President and CEO Eira Thomas called securing the financing “an important achievement for Lucara and a strong endorsement of our underground expansion plans.” She said the loans will supplement the cash flow from the open-pit portion of Karowe for the next five years and will extend the life of the mine from 2025 to at least 2040.
The five lenders on the $220 million financing facility for Lucara are: ING Bank N.V., Natixis, the London branch of Societe Generale, Africa Finance Corp., and Afreximbank. Thomas described them as having “significant mining and metals track records and experience in Africa.”
Closing on the facilities is subject to completion of definitive documentation and the satisfaction of certain terms and conditions, including Know Your Customer (KYC) checks.
The target closing date for the financing package is mid-2021, with financing expected to be in place by the second half of the year.
Lucara made the financing announcement the day before it released its first-quarter 2021 results.
Revenues totaled $53.1 million, or $579 per carat sold, for the miner in Q1. Net income was $3.4 million.
That is a significant improvement over Q1 2020, when the onset of the pandemic limited sales to $34.1 million and caused Lucara to record a loss of $3.2 million.
First-quarter 2021 results also are up when compared with 2019, when Lucara reported revenues of $48.7 million, or $512 per carat sold. Net income for the latter, however, was higher at $7.4 million.
The company said overall, the diamond market started 2021 in its healthiest position in five years following strong holiday seasons in the United States and China, and careful rough supply management by producers, which has helped to recalibrate polished inventories.
Canada’s Lucara Diamond has found an unbroken 341-carat white gem-quality rock at its prolific Karowe mine in Botswana, with analysts estimating it could fetch more than $10 million.
The Vancouver based miner said the diamond was recovered over the Christmas period from milling of ore coming from the south western quadrant of Karowe’s South Lobe.
The diamond is the 54th stone over 200 carats recovered at Karowe since it began commercial operations in 2012.
The find builds on previous historic recoveries which include the 342-carat Queen of the Kalahari, the 549 carat Sethunya, the 1,109 carat Lesedi La Rona found in 2015, and the 1758 carat Sewelô, recovered in 2019.
Beyond Sewelô, the only larger diamond ever unearthed is the 3,106 carat Cullinan Diamond, discovered in South Africa in 1905. The Cullinan was later cut into smaller stones, some of which now form part of British royal family’s crown jewels.
Canada’s Lucara Diamond has found an unbroken 341-carat white gem-quality rock at its prolific Karowe mine in Botswana, with analysts estimating it could fetch more than $10 million.
The Vancouver based miner said the diamond was recovered over the Christmas period from milling of ore coming from the south western quadrant of Karowe’s South Lobe.
The diamond is the 54th stone over 200 carats recovered at Karowe since it began commercial operations in 2012.
The find builds on previous historic recoveries which include the 342-carat Queen of the Kalahari, the 549 carat Sethunya, the 1,109 carat Lesedi La Rona found in 2015, and the 1758 carat Sewelô, recovered in 2019.
Beyond Sewelô, the only larger diamond ever unearthed is the 3,106 carat Cullinan Diamond, discovered in South Africa in 1905. The Cullinan was later cut into smaller stones, some of which now form part of British royal family’s crown jewels.
Lucara Diamond has unearthed a 123-carat, gem-quality, top white Type II diamond at its Karowe mine, in Botswana, the same operation where it found the largest precious rock ever found in the African country.
The stone was recovered from direct milling ore sourced from the EM/PK(S) unit of the South Lobe, the same area that yielded the famous “Lesedi La Rona.” The giant 1,109 carat diamond, however, was a hard sell for Lucara. Its buyer, Graff Diamonds ended up cutting it into smaller stones.
Karowe, which began commercial operations in 2012, has this year yielded 22 diamonds larger than 100 carats, eight of them exceeding 200 carats.
The mine also yielded the 1,758 carat Sewelô meaning “rare find” diamond, the largest ever recovered in Botswana.
The Vancouver-based company also announced it had recovered a 375 carat gem quality diamond during the processing of historic tailings from the mine. Reprocessing has so far yielded 29 diamonds over 100 carats, Lucara said.
Since the start of the year, the miner has sold 19 diamonds each with an individual price in excess of $1 million at its quarterly tender sales. This includes seven diamonds that fetched more than $2 million each, and one diamond that carried a final price tag of over $8 million.
“Lucara is pleased with the continued strong performance of the mine and the consistent recovery of large, high quality diamonds that contribute more than 70% of Lucara’s total revenues,” CEO Eira Thomas said in a statement.
The company, which has focused efforts on the prolific Botswana mine this year, is close to completing a feasibility study into potential underground production and life of mine expansion at Karowe.
Lucara Diamond has unearthed a 123-carat, gem-quality, top white Type II diamond at its Karowe mine, in Botswana, the same operation where it found the largest precious rock ever found in the African country.
The stone was recovered from direct milling ore sourced from the EM/PK(S) unit of the South Lobe, the same area that yielded the famous “Lesedi La Rona.” The giant 1,109 carat diamond, however, was a hard sell for Lucara. Its buyer, Graff Diamonds ended up cutting it into smaller stones.
Karowe, which began commercial operations in 2012, has this year yielded 22 diamonds larger than 100 carats, eight of them exceeding 200 carats.
The mine also yielded the 1,758 carat Sewelô meaning “rare find” diamond, the largest ever recovered in Botswana.
The Vancouver-based company also announced it had recovered a 375 carat gem quality diamond during the processing of historic tailings from the mine. Reprocessing has so far yielded 29 diamonds over 100 carats, Lucara said.
Since the start of the year, the miner has sold 19 diamonds each with an individual price in excess of $1 million at its quarterly tender sales. This includes seven diamonds that fetched more than $2 million each, and one diamond that carried a final price tag of over $8 million.
“Lucara is pleased with the continued strong performance of the mine and the consistent recovery of large, high quality diamonds that contribute more than 70% of Lucara’s total revenues,” CEO Eira Thomas said in a statement.
The company, which has focused efforts on the prolific Botswana mine this year, is close to completing a feasibility study into potential underground production and life of mine expansion at Karowe.
Karowe diamond mine located in Botswana has recovered a 472 carat, top light brown gem diamond.
The Rough Diamond will be sold with other exceptional stones recovered this year as part of the first large stone tender in 2018.
In 2018 The Karowe mine will focus on the high value south lobe area which consistently delivers, large high quality diamonds in excess of 10 carats in size.
Karowe diamond mine located in Botswana has recovered a 472 carat, top light brown gem diamond.
The Rough Diamond will be sold with other exceptional stones
recovered this year as part of the first large stone tender in 2018.
In 2018 The Karowe mine will focus on the high value south lobe area
which consistently delivers, large high quality diamonds in excess of
10 carats in size.
