Karowe mine production in 2012 comes in 12 percent higher than forecast

Output from the Karowe mine in Botswana last year was 12 percent higher than forecast at 303,060 carats, said owner, Lucara Diamond Corp.

The miner staged five sales of Karowe rough diamonds last year, which brought in $54 million in revenues.

Among the highlights was a 9.46-carat blue diamond which the firm sold for $4.5 million, or $447,272 per carat.

Lucara said other smaller blue diamonds were also unearthed, including a 4.77-carat diamond which will be sold this year.

Lucara President and Chief Executive Officer William Lamb said, "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 also reported that an x-ray recovery tailings audit of diamond recovery tailings at its Mothae operation in Lesotho was completed in the fourth quarter, and 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."