Lucapa Diamond Company Limited announced today that it has concluded its second tender of 2019 in Antwerp of diamonds recovered from the Mothae mine in Lesotho, selling 7,008 carats of diamonds for a total of US$ 3.5 million. The tender included prices of up to US$ 26,000 per carat paid for individual Mothae gems, the Company said.

The new Mothae kimberlite mine in Lesotho, owned 70% by Lucapa with the Government of the Kingdom of Lesotho holding 30%, commenced commercial diamond mining operations in January 2019.

The latest result brings to US$ 7.3 million the total sale proceeds generated from the two tenders of Mothae diamonds completed this year. This represents an average overall price of US$ 588 per carat for the run of mine production and US$ 729 per carat for diamonds in the +11 sieve size fraction.

A new treatment plant recently installed at Mothae and its efficiency in treating the near surface weathered material has resulted in the liberation of additional diamonds, primarily small stones below the plant’s 3mm bottom cut-off screen size. These additional diamonds are in the -11 and below sieve size fractions. While these diamonds generate additional value, they also reduce the overall average US$ per carat price.

Lucapa is considering a third tender in H1 2019 following the continued strong recoveries from the new 1.1 Mtpa kimberlite plant, including the 126 carat gem-quality diamond recovered earlier this month and other Type IIa Specials including three stones of 15 carats, 13 carats and 12 carats.

Currently, mining has been restricted predominantly to the lower-margin diamond zones since commercial production commenced at Mothae in January 2019 due to the decision to delay the scheduled dewatering of the main southern pit to preserve water required to enable the plant to operate at higher throughput rates in H2 2019.

The water in the southern pit will be transferred to the main water dam in H2 2019 when the dam wall is completed. This will in turn enable Mothae to access the higher-margin diamond zones in the southern pit.

Lucapa Managing Director Stephen Wetherall said the latest tender results continued to underline Mothae’s status as one of a select few global mines capable of producing high-value diamonds on a consistent basis. “We continue to be encouraged by the regular recovery of Specials and sales results achieved from the supposed lower-margin areas of the Mothae kimberlite pipe.”

Pic caption: Selection of run of mine production from the second commercial tender of Mothae diamonds

Pic courtesy: Lucapa