TIDM0QUI
RNS Number : 7642M
Lucara Diamond Corp
18 September 2019
September 18, 2019
PRESS RELEASE
LUCARA RECOVERS 123 CARAT GEM QUALITY TYPE IIA DIAMOND
Year to date large stone tally at 22 diamonds +100 carats,
including 6 +200 carats
VANCOUVER, September 18, 2019/CNW/ - (LUC - TSX, LUC - BSE, LUC
- Nasdaq Stockholm)
Lucara Diamond Corp. ("Lucara" or the "Company") is pleased to
announce the recovery of a 123 carat gem quality top white Type II
diamond (image attached) from its 100% owned Karowe Diamond Mine
located in Botswana. The 123 carat diamond was recovered from
direct milling ore sourced from the EM/PK(S) unit of the South
Lobe. The EM/PK(S) has also delivered several other high value
diamonds including the 1,109 carat Lesedi La Rona, the 813 carat
Constellation and the recently recovered 1,758 carat Sewelô, and is
an important economic driver for the underground feasibility study
which is currently underway and scheduled for completion in Q4
later this year.
A 375 carat gem quality diamond was also recently recovered at
Karowe from the processing of historic DMS recovery tailings,
generated prior to the incorporation of Lucara's XRT diamond
recovery circuits. Karowe continues to have strong production
performance year to date, with recovery from direct milling ore of
22 individual, +100 carat diamonds, including 6 greater than 200
carats, and the historic 1,758 carat Sewelô diamond, the largest
ever diamond to be recovered in Botswana. Re-processing of historic
DMS recovery tailings (pre-XRT circuit) is ongoing. Processing of
these tailings does not displace direct feed ore, but rather
supplements overall production. Year to date, from all processing,
the mine has produced 29 diamonds > 100 carats, including 8
diamonds > 200 carats.
On August 29(th) Lucara closed its third diamond tender sale of
the year. Despite challenging market conditions, the tender was
extremely well attended with a total of 123 companies attending and
47 companies winning one or more tender lots. In the three
completed tenders of the year, a total of 19 diamonds have sold for
in excess of $1 million USD, including 7 > $ 2 million USD and
one for > $ 8 million USD. Revenue received was in line with
expectations and in line with the Company meeting the yearly
guidance of $ 170 to $ 200 million USD in revenue. Full details
will be released with Q3 2019 results on November 7(th) of this
year. Analysis of the historic 1,758 carat Sewelô is ongoing.
Eira Thomas, Lucara's CEO commented: "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. Attendance at our sales remains
high, a testament to our well-established client base and Karowe's
production profile, which continues to be well regarded and sought
after in the marketplace. This is further evidenced by our growth
with the client base for Clara which has grown from 4 to over 20
customers since the beginning of the year. Ramp up continues on
plan, with transactions now occurring bi-weekly."
This press release has been reviewed and approved by Dr. John
Armstrong, Ph.D. P.Geol., Vice-President, Technical Services of the
Company and a "Qualified Person" for the purposes of National
Instrument 43-101.
On behalf of the Board,
Eira Thomas
President and Chief Executive Officer
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For further information, please contact:
Investor Relations & Public Relations +1 604 689 info@lucaradiamond.com
7842
Sweden: Robert Eriksson, Investor +46 701 112615 reriksson@rive6.ch
Relations
ABOUT LUCARA
Lucara is a leading independent producer of large exceptional
quality Type IIa diamonds from its 100% owned Karowe Mine in
Botswana. The Company has an experienced board and management team
with extensive diamond development and operations expertise. The
Company operates transparently and in accordance with international
best practices in the areas of sustainability, health and safety,
environment and community relations.
The information in this release is accurate at the time of
distribution but may be superseded or qualified by subsequent news
releases.
This information is information that the Company is obliged to
make public pursuant to the EU Market Abuse Regulation and the
Swedish Securities Markets Act. This information was submitted for
publication, through the agency of the contact person set out above
on September 18, 2019, at 5:30 am Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain of the statements made and contained herein and
elsewhere constitute forward-looking statements as defined in
applicable securities laws. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible" and similar
expressions, or statements that events, conditions or results
"will", "may", "could" or "should" occur or be achieved.
Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made and
they are subject to a number of known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievement
expressed or implied by such forward-looking statements. The
Company believes that expectations reflected in this
forward-looking information are reasonable, but no assurance can be
given that these expectations will prove to be accurate and such
forward-looking information included herein should not be unduly
relied upon. In particular, this release contains forward looking
information with respect to management's expectations about the
likelihood of recovering additional, high quality diamonds from the
Karowe Mine in the future and our ability to achieve our 2019
revenue guidance. The value of the Company's shares, its financial
results, and its mining activities are significantly affected by
the price and marketability of the diamonds recovered. The sales
price of a diamond is determined by its characteristics. While the
Karowe Diamond Mine has produced a number of large, high-value
diamonds in excess of 100 carats, there is no assurance that the
diamonds recovered which are 100 carats or larger will have the
characteristics required to achieve a high sales price.
There can be no assurance that such forward looking statements
will prove to be accurate, as the Company's results and future
events could differ materially from those anticipated in this
forward-looking information as a result of those factors discussed
in or referred to under the heading "Risks and Uncertainties"' in
the Company's most recent Annual Information Form available at
http://www.sedar.com, as well as changes in general business and
economic conditions, changes in interest and foreign currency
rates, the supply and demand for, deliveries of and the level and
volatility of prices of rough diamonds, costs of power and diesel,
acts of foreign governments and the outcome of legal proceedings,
inaccurate geological and recoverability assumptions (including
with respect to the size, grade and recoverability of mineral
reserves and resources), and unanticipated operational difficulties
(including failure of plant, equipment or processes to operate in
accordance with specifications or expectations, cost escalations,
unavailability of materials and equipment, government action or
delays in the receipt of government approvals, industrial
disturbances or other job actions, adverse weather conditions, and
unanticipated events relating to health safety and environmental
matters).
Accordingly, readers are cautioned not to place undue reliance
on these forward-looking statements which speak only as of the date
the statements were made, and the Company does not assume any
obligations to update or revise them to reflect new events or
circumstances, except as required by law.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCLIFLFARITLIA
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September 18, 2019 08:30 ET (12:30 GMT)
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