Published: December 1, 2016 |

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Lucara Diamond Corp. has provided an operating outlook for 2017.

“2016 has been a successful year for Lucara with strong cash flows driven by revenues from the south lobe supported by our continued focus on cost control. Our performance resulted in a special dividend payment in 2016 and we anticipate increasing our 2017 dividend from C$0.06 per share to C$0.10 per share,” said William Lamb, president and chief executive officer.

“2017 sees our focus on advancing the push back in the pit at the Karowe mine, which is forecast to be complete by the end of 2018, giving us full access to the high value south lobe ore and a significant reduction in waste mining going forward. Our exploration and drilling programs for resource extension are progressing and we look forward to announcing those results in 2017,” added Lamb.

DIAMOND REVENUE

The company forecasts revenue of between $200 to $220 million excluding the sale of the Lesedi La Rona diamond. The company continues to recover both large and exceptionally high value diamonds from the mine and is now focused on the higher value south lobe. It is difficult to predict incidence of the large high value diamonds and the potential lead time to sell such diamonds at maximum value. The company therefore considers sales from these diamonds as additional revenue to the baseline $200 to $220 million revenue forecast.

PRODUCTION

The Karowe mine is forecast to process between 2.2 - 2.5 million tonnes of ore, producing between 290,000 and 310,000 carats of diamond. It is expected that the mine will process material largely from the south lobe during 2017. The overall grades of the south lobe are lower than the centre and north lobes resulting in lower diamond production, which is expected. However, the overall diamond quality and value of the south lobe is much higher and has historically resulted in significantly increased revenue and cash flow. The company plans to issue an updated NI43-101 report following completion of deep drilling work at Karowe.

EXPLORATION

A budget of up to $10.0 million has been allocated to advance exploration work and the company’s underground study. The company continues to set staged hurdle targets throughout its exploration program, where results will be evaluated to determine whether funding will be advanced for further work. Focus in 2017 will be on BK02, AK11and AK13. Karowe deep drilling on the AK6 kimberlite and south lobe is to be completed in 2017 with the aim of convert inferred resources below 400 metres depth to an indicated resource and to determine the economic viability for underground mining, potentially extending the life of mine at Karowe.

To read more details in the company’s press release, CLICK HERE

About Lucara
Lucara is a well positioned diamond producer. The company has an experienced board and management team with extensive diamond development and operations expertise. The company’s main producing asset is the 100 percent owned Karowe Mine in Botswana. The company also conducts exploration activities and holds two precious stone prospecting licenses close to its Karowe mine.

To stop by Lucara’s website, CLICK HERE

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