Lucara diamond may be world’s second largest
Lucara Diamond Corp. [LUC-TSX, LUCRF-OTC] said it 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 X-ray Transmission technology, which was installed in 2017 to identify and preserve large, very high value diamonds,’’ the company said in a press release. 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.
Published reports say the 2,492-carat diamond may rank as the second largest gem-quality example ever found, ranking behind the 3,106 carat Cullinan diamond, which was mined from South Africa in 1905.
Lucara shares soared on the news, rising 45% or 15 cents to 48 cents on active volume of 3.06 million. The shares trade in a 52-week range of 48 cents and 28.5 cents.
This latest recovery joins an impressive roster of other significant finds from the mine, including the 1,758 carat Sewelo and the 1,109 carat Lesedi la Rona.
“We are ecstatic about the recovery of this extraordinary 2,492 carat diamond,’’ said Lucara President and CEO William Lamb. “This find not only showcases the remarkable potential of our Karowe Mine, but also upholds our strategic investment in cutting edge XRT technology,’’ he said. “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.’’
Lucara recently announced an updated feasibility study for the underground project (UGP) at its Karowe diamond mine in north central Botswana, one of the world’s most prolific diamond-producing areas.
Lucara said the underground expansion at Karowe is expected to double the mine life, and to generate significant revenue and cash flow out to 2040.
Lucara is a member of the Lundin Group of companies. The currently operating open pit mine at Karowe is a conventional load and haul operation. The mine is a producer of large, high-value type 2a diamonds. It is the only mine to have produced four diamonds in excess of 1,000 carats in size.
The open pit mine operations are expected to terminate mid-2025. However, the mine currently has over three years of surface stockpiled reserves, which will be consumed as required while the underground mine operations ramp up to commercial production.
Highlights of the updated UGP study include an extension of the mine life by 15 years, a pre-production capital cost for the UGP of US$683 million to be spent over an eight-year pre-production construction and commissioning period until the second half of 2027 (of which 3.5 years have already been completed).
The UGP is projected to generate US$1.1 billion in cash flow with total life of mine diamond recoveries estimated at 6.8 million carats.