Lucara 2012 Summary
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 01/31/13 -- Lucara
Diamond Corp. ("Lucara" or the "Company")
(TSX:LUC)(BOTSWANA:LUC)(NASDAQ OMX First North:LUC) is pleased to
provide a summary of 2012 production and project progress.
-- The mine treated 1.4 million tonnes, 9% above forecast in 2012. Ramp-up
to full production capacity, which commenced in April, was achieved by
-- The mine produced 303,060 carats of diamond, 12% above the forecast of
-- There were 5 sales of Karowe goods in 2012 generating a total of $54
million in revenue.
-- Diamond production included an exceptional 9.46 carat blue diamond which
sold for $4.5m ($447,272 per carat). Other smaller blue diamonds have
subsequently been recovered, including a 4.77 carat diamond which will
be sold in 2013.
-- The excellent safety record was continued through the year. At Karowe
there were no Lost Time Injuries ("LTI's") or reportable environmental
incidents. There have been over 2.8 million hours worked without any
LTI's since March 2011, including 1.6 million hours since the beginning
-- In the fourth quarter of 2012 the x-ray recovery tailings audit of
diamond recovery tailings was completed. The project is now fully
transitioned to a small care and maintenance team.
-- Project development options will continue to be evaluated through 2013.
Initial indications from the Preliminary Economic Assessment work
indicate that the project currently does not achieve required internal
hurdle rates. This is due to the prevailing economic conditions which
have put downward pressure on diamond prices, and is further impacted by
significantly higher capital for infrastructure, particularly power, for
this remote site.
William Lamb, President and CEO, commented, "This has been an
achievement filled and rewarding year for Lucara, which has
successfully transitioned from a mine developer to a mine operator.
The technical and managerial strength of the team at Karowe has been
demonstrated by the rapid ramp up to full production; the diligent
work in overcoming commissioning challenges; the achievement of
production and sales forecasts; and most importantly doing all this
without harm to our staff or the environment. We look forward to
taking the company further in 2013."
Lucara is a well positioned emerging new diamond producer. The
Company has an experienced board and management team with extensive
diamond development and operations expertise. The Company's two key
assets are the Karowe Mine in Botswana and the Mothae Project in
Lesotho. The 100% owned Karowe Mine is in the production. The 75%
owned Mothae Project has completed its trial mining program.
Mr. Anthony George, P. Eng., a mining engineer and Lucara's V.P.
Development, is the Company's Qualified Person pursuant to NI 43-101
and has reviewed the technical contents of this news release.
On Behalf of the Board,
William Lamb, President and CEO
Lucara's Certified Advisor on NASDAQ OMX First North is Pareto Ohman
This Press Release contains "forward-looking information" that is
based on Lucara's expectations, estimates and projections as of the
dates as of which those statements were made. This forward-looking
information includes, among other things, statements with respect to
the use of the proceeds of the credit facility. Generally, this
forward-looking information can be identified by the use of
forward-looking terminology such as "outlook", "anticipate",
"project", "target", "believe", "estimate", "expect", "intend",
"should", "scheduled", "will", "plan", "would" and similar
expressions. Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause
Lucara's actual results, level of activity, performance or
achievements to be materially different from those expressed or
implied by such forward-looking information and is developed based on
assumptions about such risks, uncertainties and other factors. A
discussion of factors that may affect Lucara's actual results,
performance, achievements or financial position is contained in the
filings by Lucara with the Canadian provincial securities regulatory
authorities, including Lucara's 2011 annual information form filed on
SEDAR on March 22, 2012.
Forward-looking statements are based on assumptions management
believes to be reasonable, including but not limited to the continued
general market conditions, development of the AK6 project, no
material adverse change in the market price of commodities and that
the costs of development and operation of the AK6 project will be
line with management's expectations. Although Lucara attempted to
identify important factors that could cause actual results to differ
materially from those contained in forward-looking statements, there
may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that forward-looking
statements will prove to be accurate. Accordingly, readers should not
place undue reliance on forward-looking statements. Lucara disclaims
any intent or obligations to update or revise publicly any
forward-looking statements whether as a result of new information,
estimates or options, future events or results or otherwise, unless
required to do so by law.
Lucara Diamond Corp.
+1 (604) 689-7842
+1 (604) 689-4250 (FAX)
Lucara Diamond Corp.
Investor Relations, Sweden
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