Lucara Raises Mineral Resource Estimate by $1B For Karowe
December 21, 13
 |
“A significant population of large and exceptional diamonds has been recovered during mining operations over the past year at Karowe and these larger diamonds have now been factored into the mineral resource estimate resulting in a greater than $1 billion increase in the estimated in-situ value of the indicated mineral resource,” the firm said.
The updated mineral resource estimate took into account mining activities at Karowe since the start of production in April 2012 and includes changes to the geological model, re-interpretation of diamond size distributions, and the results of all diamond sales.
“The highlights of the mineral resource update, valid at the cut-off date of 21 October 2013, are a recoverable indicated mineral resource estimate at a 1.25mm bottom cut-off size of 46.2 million tonnes at an average grade of 16 carats per hundred tonne (cpht) with an average modeled diamond value of US$394 per carat, and a recoverable Inferred mineral resource of approximately 21 million tonnes at an average grade of 14 cpht with an average modeled diamond value of US$412 per carat.”
The recovery of significant numbers of large and high value diamonds from the centre and south lobes of the mineral resource being mined at Karowe has resulted in a positive change to the modeled and recovered size frequency distribution significantly increasing the overall modeled average price per carat for the Karowe Mine compared to the previous mineral resource estimate.
Lucara President and COO William Lamb said, "The updated mineral resource for the Karowe mine reflects important changes based on the large amount of new information generated since the start of production at Karowe. The presence of exceptional stones within the centre and south lobes is now appropriately reflected in the size frequency distributions and the modeled average price.
“In 2013, Lucara sold more than 438,000 carats of diamonds for gross proceeds in excess of $180 million. Included in these were 23 diamonds which sold for over $1 million, including nine diamonds which sold for more than $3 million each. The updated resource estimate is further supported with the ongoing recovery of special diamonds, with more than 70 stones larger than 10.8 carats being recovered to date in December. Since the start of mining in the centre and south lobes in March, more that 600 diamonds larger than 10.8 carats have been recovered."