Click here to close now.




















Welcome!

News Feed Item

Lucara Diamond Provides Operating Outlook for 2014

VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 01/13/14 -- (TSX: LUC)(BOTSWANA: LUC)(NASDAQ OMX First North: LUC) Lucara Diamond Corp. ("Lucara" or the "Company") is pleased to provide operating performance and capital expenditure guidance for 2014. Key operational estimates are as follows:


--  Revenue of $150 to $160 million is expected from the sale of 400,000 to
    420,000 carats of diamonds in 2014, including the assumption that the
    Company will have two exceptional stone tenders.
--  Karowe operating cash costs are expected to be between $31-$33 per tonne
    treated.
--  Mining is forecast at 3.0-3.5 million tonnes of kimberlite of which it
    is anticipated that 2.2-2.4 million tonnes will be processed through the
    plant with the remainder being stockpiled.
--  Waste mining is scheduled to be approximately 10.0-11.0 million tonnes.
--  Building and commissioning of a plant upgrade at Karowe to improve large
    diamond recovery following continued occurrence of exceptional stones
    and to enable sustainable processing of harder ore in the south lobe.
    This is forecast at an expenditure of $45-$50 million.
--  Sustaining capital expenditure of $3.5 million is expected.

William Lamb, President and Chief Executive Officer, commented, "Lucara had a strong year in 2013, achieving its production and operating cost targets and exceeding forecast revenues following the recovery of a high proportion of large exceptional quality diamonds during the year.

In 2014 it is expected that the scheduled plant upgrade, largely funded from the Company's 2013 year end cash balance will be completed and brought online to deliver sustainable diamond recovery for production of 2.5 million tonnes per annum for the remainder of the mine life. This upgrade will also include processes to ensure the safe recovery of the value driving large and exceptional diamonds of Karowe.

The Company is focused on building on its strong financial position through operational optimization and focused cost management. "

Production and Cost Outlook:


----------------------------------------------------------------------------
Karowe Mine                                                   Full Year 2014
----------------------------------------------------------------------------
Ore tonnes mined (million)                                         3.0 - 3.5
----------------------------------------------------------------------------
Waste tonnes mined (million)                                     10.0 - 11.0
----------------------------------------------------------------------------
Ore tonnes treated (million)                                       2.2 - 2.4
----------------------------------------------------------------------------
Carats recovered (thousands)                                       400 - 420
----------------------------------------------------------------------------
Ore treated costs ($ per tonne)                                $31.0 - $33.0
----------------------------------------------------------------------------
Ore treated costs excluding waste ($ per tonne)                $22.0 - $23.0
----------------------------------------------------------------------------
Ore mined cash costs ($ per tonne)                             $3.20 - $3.30
----------------------------------------------------------------------------
Waste mined cash costs ($ per tonne)                          $3.15 - $ 3.20
----------------------------------------------------------------------------
Processing cash costs ($ per tonne milled)                       9.00 - 9.20
----------------------------------------------------------------------------
General and Administration Costs ($ per tonne
 milled). Costs include (security, health and
 safety, engineering, onsite administration).                   $2.9 - $3.10
----------------------------------------------------------------------------
All In cash operating costs ($ per tonne milled)             $31.00 - $33.00
----------------------------------------------------------------------------

Production

The Karowe Mine is forecast to treat between 2.2-2.4 million tonnes of ore, producing over 400,000 carats of diamonds, which is in line with the 2013 forecast production. The plant throughput is constrained as downtime is scheduled to enable integration and commissioning of the new large diamond recovery and crushing circuits. The forecast for tonnes treated per annum returns to 2.5 million in 2015. Financial analysis has indicated that a treatment rate of 2.5 million tonnes per annum is optimal for the remaining mine life.

Karowe is forecast to increase waste mined during 2014, in line with the original feasibility mine plan, as it opens up the full extent of the South lobe. The Karowe mine plan, therefore, expects more that 10 million tonnes of waste will be stripped and stockpiled or used to expand the tailings in 2014.

2014 Cash Costs

Cash costs per tonne of ore treated is forecast to be between $31-$33 per tonne as compared to 2013 forecast of $23 per tonne. The forecast increase in operating cash costs is largely due to the additional 4.5 million tonnes of waste mined during the year.

Processing costs are also forecast to be marginally higher following the change to the process plant facilities to improve large diamond recovery and process harder material from the south lobe.

2014 Capital Expenditure Guidance

The Karowe Mine has been in production since May 2012 and has conducted mining and processing operations broadly in line with the feasibility study. As of December 2013 there have been 5.5 million tonnes of waste removed to allow for the extraction of 3.9 million tonnes of ore, 2.4 million tonnes of which were processed, yielding 441,000 carats of diamonds. A total of 439,000 carats have been sold in 2013 with year end inventory of 67,000 carats of diamonds. The remaining, low-grade ore, has been stockpiled for treatment at the end of mine life.

The early stage mining and processing has been predominantly weathered ore (near the surface) but as the mine gets deeper, harder, more competent primary kimberlite ore is exposed. During 2014 the weathered ore will be depleted and the process plant feed will transition from weathered ore to competent, primary kimberlite ore. As discussed in the AK6 43-101 dated December 31, 2010, and estimated in the life-of-mine financial model, plant modifications (additional crushing capacity) are required to ensure that the annual tonnage treated is maintained, as the primary kimberlite requires more energy to crush or mill to liberate the diamonds.

During 2013 tests were conducted on site and at metallurgical laboratories to verify the ore treatment assumptions from the feasibility study. Subsequently, engineering studies have been completed to identify the most effective and cost efficient solution to process the ore.

A further development during 2013 was the recovery of large, exceptional quality, diamonds - a development which greatly enhanced the value of the Karowe asset. Since these diamonds were not predicted during the evaluation of the project, the initial process plant design at Karowe did not specifically allow for their effective recovery. Some minor, temporary, modifications were conducted during the year but it was highlighted that a sustainable solution was critical to ensure the safe recovery of these large, high value, diamonds. During 2014, as part of the plant modifications, an enhanced large diamond recovery circuit is planned for construction and commissioning.

Construction is scheduled to begin in Q1 2014 with completion scheduled for Q4 at a projected cost of between $45-$50 million.

Sustaining capital expenditure is forecast to be approximately $3.5 million.

These expenditures will be largely funded from the Company's 2013 year end cash balance, with the remainder funded from forecast 2014 cash flows. Net cash position as of 31 December 2013 was approximately $40 million. The Company's Scotiabank $25 million credit facility was undrawn at year end.

Resource Update

As a result of the continued recovery of large and exceptional stones at Karowe, the Company completed, and announced on December 19, 2013, a resource update and is expecting to release a revised NI 43-101 during the first quarter 2014.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements made and contained herein 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 correct and such forward-looking information included in this release should not be unduly relied upon. In particular, this release may contain forward looking information pertaining to the following: the estimates of the Company's mineral reserve and resources; estimates of the Company's production and sales volumes for the Karowe Mine;, production costs; expectation of diamond price and changes to foreign currency exchange rate; expectations regarding the need to raise capital; possible impacts of disputes or litigation and other risks and uncertainties described under Risks and Uncertainties disclosed in the Company's Annual Information Form.

There can be no assurance that such 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 "Risk Factors' in the Company's Annual Information Form dated March 27, 2013 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), 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We've just seen a huge influx of new partners coming into our ecosystem, and partners building unique offerings on top of our API set," explained Seth Bostock, Chief Executive Officer at IndependenceIT, in this SYS-CON.tv interview at 16th Cloud Expo, held June 9-11, 2015, at the Javits Center in New York City.
Learn how to solve the problem of keeping files in sync between multiple Docker containers. In his session at 16th Cloud Expo, Aaron Brongersma, Senior Infrastructure Engineer at Modulus, discussed using rsync, GlusterFS, EBS and Bit Torrent Sync. He broke down the tools that are needed to help create a seamless user experience. In the end, can we have an environment where we can easily move Docker containers, servers, and volumes without impacting our applications? He shared his results so yo...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
Chuck Piluso presented a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. Prior to Secure Infrastructure and Services, Mr. Piluso founded North American Telecommunication Corporation, a facilities-based Competitive Local Exchange Carrier licensed by the Public Service Commission in 10 states, serving as the company's chairman and president from 1997 to 2000. Between 1990 and 1997, Mr. Piluso served as chairman & founder of International Te...
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at @DevOpsSummit, Haseeb Budhani, CEO and Co-founder of Soha, shared five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the friction an...
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of pro...
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect t...
The essence of cloud computing is that all consumable IT resources are delivered as services. In his session at 15th Cloud Expo, Yung Chou, Technology Evangelist at Microsoft, demonstrated the concepts and implementations of two important cloud computing deliveries: Infrastructure as a Service (IaaS) and Platform as a Service (PaaS). He discussed from business and technical viewpoints what exactly they are, why we care, how they are different and in what ways, and the strategies for IT to tran...
Containers are changing the security landscape for software development and deployment. As with any security solutions, security approaches that work for developers, operations personnel and security professionals is a requirement. In his session at DevOps Summit, Kevin Gilpin, CTO and Co-Founder of Conjur, will discuss various security considerations for container-based infrastructure and related DevOps workflows.