The stock shot up 13% in London Wednesday after Firestone announced it had unearthed an 110-carat yellow diamond, it’s biggest find so far at its Liqhobong mine.
Lesotho Mining News
The project, which has existing infrastructure, a camp and a diamond processing plant in place, is located just 5km from Letšeng, the highest dollars-per-carat kimberlite diamond mine in the world.
The 10 diamonds, found at the Karowe mine in Botswana, were sold for gross revenues of $33,632 per carat.
The rock, discovered by Lucara in Botswana last year, is second in size only to the Cullinan diamond in the British Crown jewels.
Canada's Lucara Diamond had launched a a competition to name the rock earlier this year.
The Africa-focused miner needs funding to complete the acquisition of the Mothae project and to repay short-term debts, including £500,000 due this week.
Lucara Diamond Corp. is pleased to report revenues of $90.9 million for the quarter with an operating margin of 88% and revenues of $158.6 million for the nine months to September 2015.
Shares in the Africa-focused diamond miner climbed almost 6% after it revealed the Mothae kimberlite project in Lesotho may be more profitable than previously assumed.
Since the recovery of the first large diamond from the Karowe mine in 2013, Lucara has found 216 gems, which it has sold for more than $250,000 each.
Since the recovery of the first large diamond from Karowe in 2013, the firm has found 216 gems at the site.
The star of the show was a 341.9 carat diamond —unveiled in April —, which sold for $20.55 million
The miner, which does not yet generates any income, expects to kick-off production at its Lemphane and Mothae mines later this year.
Adverse weather conditions and the need to shift more earth than previously anticipated have also added $13 million to overall costs.
But some believe main challenge will be falling prices and wholesalers difficult access to credit to purchase rough diamonds.
Developing Mothae and Lemphane concurrently would allow Paragon to benefit from significant economies of scale, said Paragon Diamonds.
The gem will be sold along with two other greater than 100 carat diamonds, also recovered at Lucara's Karowe mine.
The prime minister of the tiny African nation fled the country over the weekend after what he called a military coup.
Paragon will now hold 80% of the equity in the project, together with the Government of Lesotho holding 20%.
The frequency of TB among mineworkers is ten times higher than the level of a health emergency as defined by the World Health Organization (WHO).
50 mines are estimated to account for 90% of global rough diamond supply in 2014.
Company released results of independent analysis conducted over the past 22 months at its Liqhobong mine in Lesotho.
Since Gem Diamonds took control of the Letseng mine in 2006 the mine, it has produced four of the top 20 largest white gem quality rocks on record.
Ex-DeBeers CFO will become Firestone's CEO in December.
Miner has become the third-best performer this year among publicly traded Canadian metal and mining firms.
The miner commissioned three companies for scoping and drilling work to help to move its Lemphane kimberlite project in Lesotho to inferred resource status.