Canada’s Lucara Diamond (TSX:LUC) found an unbroken 341-carat white gem-quality stone at its prolific Karowe mine in Botswana, with analysts estimating it could fetch more than $10-M.
The Vancouver-based miner said the diamond was recovered over the Christmas holidays from milling of ore coming from the south western quadrant of Karowe’s South Lobe.
The diamond is the 54th stone over 200 carats recovered at Karowe since it began commercial operations in Y 2012.
The find builds on prior historic recoveries which include the 342-carat Queen of the Kalahari, the 549-carat Sethunya, the 1,109-carat Lesedi La Rona found in Y 2015, and the 1758-carat Sewelô, recovered in Y 2019.
Beyond Sewelô, the only larger diamond ever unearthed is the 3,106-carat Cullinan Diamond, discovered in South Africa in Y 1905. The Cullinan was later cut into smaller stones, some of which now form part of British royal family’s crown jewels.
A prominent mining analyst noted significant revenue potential for Lucara this year, with the sales process from the 549-carat and the 998–carat diamonds recovered in Y 2020 expected to be completed in Y 2021.
Botswana renewed Lucara’s mining license in early January for another 25 yrs. The move allows the company to move the Karowe’s underground expansion project to its execution phase.
The development will allow Lucara to exploit the highest value part of the orebody 1st and generate over CAD$5.25-B in gross revenue.
There is Strong support for the stock at CAD$0.57/share and no resistance, CAD$2.0/share should be attainable this yr, stay tuned.
Our overall technical analysis is Very Bullish, and a speculative Buy rating is marked, if you can manage the risk, as moving the operation underground will cost CAD$514-M. It is expected to take 5 yrs and extend Karowe’s productive life by 20 yrs until Y 2040.
Lucara Diamond Corp. is a diamond mining company that engages in the acquisition, exploration, development, and operation of diamond properties in Africa.
The company holds 100% interests in the Karowe mine located in Botswana. It also operates a digital diamond sales platform.
The company was formerly known as Bannockburn Resources Limited and changed its name to Lucara Diamond Corp. in August 2007.
Lucara Diamond Corp. was incorporated in Y 1981 and is HQ’d in Vancouver, Canada.
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