Lucara Diamond Q1 loss widens

Lucara Diamond said its net loss widened to $4.2 million during the first quarter period ended March 31, 2012 compared to net loss of $1.9 million in 2011.
The emerging diamond miner said in a statement that the loss reflected the higher exploration expenditure in 2012 compared to the prior year.
The exploration expenditure was $3.3 million during the quarter reflecting costs at Mothae, it said.
“This is $2.1 million higher than the prior year due to the work completed during the first quarter on the preliminary economic assessment and the delineation drilling programme,” the miner said.
“This work will lead to a further understanding of the ore body and the development of an updated geologic and resource model for the Mothae kimberlite.”
Meanwhile, Lucara said that it intends to continue with trial mining programme and project evaluation through to the end of the third quarter of 2012 at Mothae, in Lesotho.
“Resource modeling based on the recently completed drill programme is ongoing and expected to be completed in the third quarter of 2012,” it said.
“Detailed ore dressing studies are underway and are also expected to be completed during this period.”
Lucara also said that it expects ramp-up to full production capacity through the remainder of the second quarter at Karowe mine in Botswana.
The first sale of diamonds from Karowe was expected to take place in Gaborone next month. There were five further sales planned for 2012, it said.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished