Diamond

 (TSX: LUC) (BSE: LUC) (Nasdaq Stockholm: LUC)

Lucara Diamond Corp. ("Lucara" or the "Company") today reports its results for the quarter ended March 31 , 2022. View PDF version .

Q1 2022 HIGHLIGHTS:

  • Revenue in Q1 2022 increased by 28% to $68.2 million from $53.1 million in Q1 2021 a reflection of strong rough and polished diamond market fundamentals into the first quarter.
  • The combination of a strong diamond market, combined with the sale of several higher value rough diamonds in Q1 2022 generated an average price per carat (excluding top-up payments) of $690 for Karowe diamonds sold during the quarter (Q1 2021: $480 per carat).
  • A total of 186 Specials (single diamonds in excess of 10.8 carats) were recovered, representing 6.9% weight percent Specials (Q1 2021: 6.8%).
  • Sales volumes transacted on Clara during Q1 2022 totalled $7.0 million , a 17% increase from the $6.0 million in sales volume transacted in Q1 2021. A third-party producer will commence a series of trial sales beginning in Q2 of 2022.
  • A total project investment of $31.1 million into the Karowe UGP during Q1 2022 focused on shaft pre-sinking activities and construction of a new 29km 132kV transmission line.

Eira Thomas, President & CEO commented: "Lucara begins the year on a positive trajectory, having fully financed and significantly de-risked our growth plans for the underground expansion in 2021 and delivered another strong quarter of operating and financial results in Q1, reflecting solid performance at the mine combined with continued buoyancy in diamond prices. Preparation for main shaft sinking is well underway and anticipated to begin in Q2. Our multi-channel approach to sales through tenders, Clara and HB continues to mature, creating alignment along the value chain, delivering efficiencies and higher margins.  Despite current geo-political challenges, Lucara remains optimistic about diamond prices as natural rough diamond supply constraints continue to manifest globally."

REVIEW FOR THE QUARTER ENDED MARCH 31, 2022

  • Operational highlights from the Karowe Mine for the three months ended March 31, 2022 included:
    • Mined 0.8 million tonnes (Q1 2021: 1.0) and 0.5 million (Q1 2021: 0.8) of ore and waste, respectively.
    • Processed 0.7 million tonnes of ore (Q1 2021: 0.7) and recovered 83,917 carats (Q1 2021: 80,014 carats), achieving a recovered grade of 12.6 carats per hundred tonnes (Q1 2021: 11.9 cpht).
    • A total of 10 diamonds greater than 100 carats were recovered during the quarter.
    • Total Recordable Injury Frequency Rate ("TRIFR") of 0.23 in Q1 2022 reflects one medical treatment case reported (Q1 2021: zero).
  • Financial highlights for the three months ended March 31, 2022 included:
    • Revenues from the sale of 80,295 carats recovered from the Karowe Mine were $67.2 million (Q1 2021: $53.0 million from the sale of 91,734 carats from Karowe). The sales agreement with HB Trading BV ("HB") accounted for 66% (Q1 2021: 72%) of total revenues recognized in the quarter.
    • Operating cash costs of $29.30 per tonne processed (1) (Q1 2021: $29.24 per tonne processed) remained consistent with the comparative period.  Q1 2022 costs are inclusive of the impact of higher power, labour and insurance costs, partially offset by a comparatively stronger U.S. Dollar.
    • Adjusted EBITDA (1) of $36.0 million increased by 62% from $22.2 million for the same period in 2021, attributed primarily to higher revenues.
    • Net income for the quarter increased to $19.0 million ( $0.04 basic earnings per share) from $3.4 million ( $0.01 basic earnings per share) in Q1 2021.

(1) Operating cash cost per tonne processed and adjusted EBITDA are non-IFRS measures (See "Use of Non-IFRS Financial Performance Measures").

  • Cash position and liquidity:
    • As at March 31, 2022 , the Company had cash and cash equivalents of $39.1 million .
    • The Company drew an additional $20.0 million from the $170.0 million project loan facility in the quarter for a total drawn amount of $45.0 million .
    • Strong cash flow from operations allowed for a reduction to the outstanding balance on the working capital facility, from $23.0 to $12.0 million as at March 31, 2022.

DIAMOND SALES

Consistent with the Company's approach through 2021, diamond sales continued to be held through a combination of regular tenders, and the Clara platform, for diamonds less than 10.8 carats, and through HB under the sales agreement for those gem and near-gem diamonds greater than 10.8 carats which are to be manufactured and sold as polished. All other diamonds are sold in quarterly tenders. The Company recognized revenue of $68.2 million in the first quarter of 2022 from the sale of 80,295 carats from Karowe. This amount included top-up payments of $11.7 million as well as $1.0 million from the sale of third-party goods on the Clara platform. In comparison, the Company achieved revenues of $53.1 million from sales of 91,760 carats in the first quarter of 2021 which included top-up payments of $9.1 million as well as $0.1 million in revenue from third-party goods sold through the Clara platform.

The exceptionally strong performance throughout 2021 was driven by higher diamond prices which were reflective of the impact of strong demand for both rough and polished diamonds, combined with supply constraints in certain size classes. This strength continued into Q1 2022.  Beginning in Q2 2020, all +10.8 carat diamonds mined from Karowe were delivered to HB pursuant to the terms of the diamond sales agreement described below.

HB SALES AGREEMENT FOR +10.8 CARAT DIAMOND PRODUCTION FROM KAROWE

Karowe's large, high value diamonds have historically accounted for approximately 60% to 70% of Lucara's annual revenues. In 2020, Lucara announced a partnership agreement with HB, entering into a definitive sales agreement for diamonds recovered that exceed +10.8 carats from the Company's 100% owned Karowe Diamond mine in Botswana . This agreement was subsequently amended and extended to December 31, 2022 . The mechanisms of the agreement result in complete transparency within the value chain and create important alignment between the producer and the manufacturer for the first time.

Under the amended sales agreement, +10.8 carat gem and near gem diamonds from the Karowe Mine of qualities that can directly enter the manufacturing stream are being sold to HB at prices based on the estimated polished outcome of each diamond. The estimated polished value is determined through state-of-the-art scanning and planning technology, with an adjusted amount payable on actual achieved polished sales, less a fee and the cost of manufacturing. Following the extension of the HB Agreement in 2021, all +10.8 carat non-gem quality diamonds and all diamonds less than 10.8 carats in weight which did not meet the criteria for sale on Clara are being sold as rough through the quarterly tender. In the agreement extension, payment terms were amended to better reflect the timing of mine production and the manufacturing process. This unique pricing mechanism delivers regular cash flow for this important segment of our production profile.

For the three months ended March 31, 2022 , the Company recorded revenue of $45.2 million from the HB agreement (inclusive of top-up payments of $11.7 million ), as compared to revenue of $38.0 million in Q1 2021 (inclusive of top-up payments of $9.1 million ). In Q1 2021, all +10.8 carat stones were sold through HB. Beginning in April 2021 when the HB agreement was extended, any +10.8 carat stones not earmarked for manufacturing by HB were sold through the Company's quarterly tender process. The increase in revenue in Q1 2022 is attributed to higher prices achieved, despite lower sale volumes. This reflects a significant improvement in diamond market fundamentals between the two comparative quarters. Due to natural variability in the quality profile of the +10.8ct production in any production period or fiscal quarter, the recorded revenue and associated top ups will fluctuate. This is expected and reflects a combination of current diamond market prices as well as variability in the quality of Karowe's production profile in any given period.

As a result of the sales agreement with HB, the Company also participated in polished diamond price increases during Q1 2022 as rough diamonds sold to HB in previous quarters were polished and sold. In Q1 2022, top-up payments of $11.7 million (Q1 2021: $9.1 million ) were included in revenue for the quarter. At March 31, 2022 a number of higher value and more technically complex stones that take longer to manufacture had not fully completed the manufacturing and sales process. These stones were delivered to HB in 2021 and Q1 2022. As these stones finish the manufacturing process and are sold, the Company's may record additional revenue in the form of "top-up" payments from these sales.

CLARA SALES PLATFORM

Clara, Lucara's 100% owned proprietary, secure, web-based digital sales platform, continues to gain scale and interest. Interest in Clara continues to grow as the benefits of purchasing rough diamonds in an innovative way become evident. In Q1 2022, three sales (Q1 2021: six sales) took place with a total sales volume transacted of $7.0 million , a 17% increase from the $6.0 million transacted in Q1 2021, reflecting a strong upward price trend observed on Clara during Q1 2022. The number of buyers on the platform increased to 92 at March 31, 2022 with the Company maintaining a waiting list to manage supply and demand.

While most of the stones transacted through the platform are supplied from the Karowe Mine, secondary market stones continued to be offered for sale through the platform with good results.  Additional supply is required to meet existing demand and drive the platform's growth and the Company expects to commence a series of trial sales on the Clara platform with a third-party producer in Q2 2022. The Company intends to continue to seek additional supply in 2022, both from third-party producers and the secondary market.

KAROWE UNDERGROUND EXPANSION UPDATE

The Karowe UGP is expected to extend the mine life to at least 2040, with underground carat production predominantly from the highest value EM/PK(S) unit and is forecast to contribute approximately $4 billion in additional revenues, using conservative diamond prices. The Karowe UGP has an estimated $534 million capital cost and a five-year construction period. Mine ramp up is expected in Q1 2026 with full production from the UGP expected in H2 2026. The Company is financing the Karowe UGP through a combination of cash flow from operations and project debt.

During the three months ended March 31, 2022 , a total of $31.1 million was spent on the Karowe UGP development, primarily in relation to engineering, procurement of long lead items and ongoing construction activities, including:

  • Pre-sink activities for both the production and ventilation shafts continued with a focus on the setup and transition to main sinking.
  • Placement of the ventilation shaft main sinking stage into the shaft column along with placement of the ventilation shaft headgear over the shaft collar.
  • Assembly of the production shaft main sink stage with outfitting planned for Q2 in preparation for its installation in the shaft column, while pre-assembly of the production shaft headgear steel continued.
  • Cold commissioning of the ventilation shaft kibble winder was completed, with progress on the ventilation shaft stage winder in preparation for winder rope-ups in April, while installation of the production shaft stage winder commenced.
  • Completed construction of all 88 tower foundations for the 29 km 132kV transmission line bulk power upgrade and commenced construction at both Letlhakane and Karowe substations.

Activities for the UGP in the upcoming quarters of 2022 are expected to include the following:

  • Execution of the main sinking contract for the production and ventilation shafts
  • Completion of the steel headgear structure for the production and ventilation shafts.
  • Commissioning of the four main sinking winders.
  • Commencement of main sinking for the production and ventilation shafts.
  • Continuation of detailed design and engineering of the underground mine infrastructure and layout.
  • Commissioning of the 29 km 132kV bulk power supply powerline by December 2022 .

DIAMOND MARKET

A strong rebound in diamond jewelry demand, combined with growing global natural rough diamond supply constraints, contributed to a healthy recovery in diamond prices in 2021.  This price strength continued into the first quarter of 2022 where increases were observed across most sizes, qualities and colors of diamonds.

Current pricing trends have been impacted by uncertainty triggered by geopolitical events, including the conflict in Ukraine and the COVID-19 pandemic, however, we continue to observe healthy market fundamentals overall, and our longer-term outlook remains positive for diamond prices. The diamond price impact of sanctions on Russian diamond supply, which accounts for a significant portion of global reserves, cannot be predicted at this time.

The benefits of the committed sales agreement with HB continued to be realized during the first quarter of 2022 as the Company participated in polished diamond price increases during Q1 2022 for diamonds delivered in previous quarters. The integrated approach, using state of the art scanning and planning technology has further enhanced the final achieved polished outcome for very large (+50 carat polished) and high value diamonds, a critical production segment for the Company.

QUARTERLY FINANCIAL HIGHLIGHTS


Three Months ended
March 31

In millions of U.S. dollars, except carats or otherwise noted

2022

2021





Revenues

$

68.2

$

53.1

Operating expenses


(18.0)

(19.7)

Net income for the period

$

19.0

$

3.4





Earnings per share (basic and diluted)

$

0.04

$

0.01

Operating cash flow per share 1

$

0.08

$

0.06





Cash on hand

$

39.1

$

27.9

Amounts drawn on working capital facility

$

12.0

$

50.0

Amounts drawn on project finance capital facility

$

45.0

$





Average price per carat sold ($/carat) 2

$

690

$

480

Carats sold


80,295

91,734


1 Operating cash flow per share before working capital adjustments is a non-IFRS measures. See "Use of Non-IFRS Financial Performance Measures".

2 The Company's revenue is primarily generated from the sale of Karowe diamonds. The average price per carat sold presented in this table relates exclusively to the sale of Karowe diamonds and excludes top-up payment received during the quarter.  Also excluded is the value of diamonds purchased from third parties and sold by the Company through Clara. See Table 2 in the Q1 2022 MD&A for additional information.

QUARTERLY RESULTS OF OPERATIONS – KAROWE MINE, BOTSWANA


UNIT

Q1-22

Q4-21

Q3-21

Q2-21

Q1-21

Sales







Revenues generated from the sale of Karowe diamonds in the quarter

US$M

67.2

56.5

72.5

45.9

53.0

Carats recovered from Karowe sold for revenues recognized during the period

Carats

80,295

102,791

117,162

68,806

91,734

Average price per carat for proceeds received during the period, excluding top-up payments

US$

690

418

588

522

480

Production







Tonnes mined (ore)

Tonnes

811,947

610,072

1,190,856

900,660

967,089

Tonnes mined (waste)

Tonnes

482,104

276,263

696,907

787,227

859,347

Tonnes processed

Tonnes

666,488

705,877

738,986

726,379

673,646

Average grade processed

cpht (*)

12.6

12.8

13.2

13.9

11.9

Carats recovered

Carats

83,917

90,634

97,412

101,330

80,014

Costs







Operating expense per carat sold

US$

224

217

198

219

215

Sustaining capital expenditures

US$M

0.8

9.1

3.4

2.4

0.4

Underground expansion project (1)

US$M

31.1

21.8

32.0

22.6

9.9

(*) carats per hundred tonnes


(1)    Excludes qualifying borrowing cost capitalized in Q1 2022 and Q4 2021.

2022 OUTLOOK

This section of the press release provides management's production and cost estimates for 2022.  These are "forward-looking statements" and subject to the cautionary note regarding the risks associated with forward-looking statements. In February 2022 , based on updated expectations for revenue in 2022, the diamond revenue guidance issued was increased to between $195.0 million and $225.0 million (from $185.0 million to $215.0 million ). Diamond revenue guidance does not include revenue related to the sale of exceptional stones (an individual rough diamond which sells for more than $10 million ), or the Sethunya.

Karowe Diamond Mine

Full Year – 2022

In millions of U.S. dollars unless otherwise noted


Diamond revenue (millions) (revised as of February 2022)

$195 to $225

Diamond sales (thousands of carats)

300 to 340

Diamonds recovered (thousands of carats)

300 to 340

Ore tonnes mined (millions)

3.1 to 3.5

Waste tonnes mined (millions)

1.5 to 2.1

Ore tonnes processed (millions)

2.6 to 2.8

Total operating cash costs (1) including waste mined (2) (per tonne processed)

$29.50 to $33.50

Botswana general & administrative expenses including marketing costs (per tonne processed)

$3.50 to $4.00

Tax rate (3)

0%

Average exchange rate – USD/Pula

11.0



(1)

Operating cash costs are a non-IFRS measure.  See "Non-IFRS Financial Performance Measures".

(2)

Includes ore and waste mined cash costs of $5.75 to $6.25 (per tonne mined) and processing cash costs of $12.00 to $13.00 (per tonne processed).

(3)

The Company is subject to a variable tax rate in Botswana based on a profit and revenue ratio which increases as profit as a percentage of revenue increases. The lowest variable tax rate is 22% while the highest variable tax rate is 55% (only if taxable income were equal to revenue).  Capital expenditures are deductible when incurred. With planned capital expenditures of up to $110 million for the UGP, a tax rate of 0% is forecast for 2022. Should capital expenditures vary from plan, the Company could be subject to current tax.

In 2022, the Company's revenue forecast assumes that 100% of the carats recovered will come from the higher value M/PK(S) and EM/PK(S) units within the South Lobe in accordance with the mine plan.

The assumptions for carats recovered and sold are consistent with achieved performance in recent years. The number of tonnes processed is also consistent with recent achievements, noting that actual tonnes processed in 2021 was about 6% higher than 2020 due to improving plant reliability because of the success of the preventative maintenance plan that has been implemented.

Waste tonnes that were deferred in 2021 as other mining areas in the open-pit were prioritized are expected to be caught up in between 2022 and 2024. The estimated processing cost per tonne processed is higher than previous years, reflecting expected inflationary pressure on labour and commodity costs.

In 2022, capital costs for the underground expansion are expected to be up to $110 million and will focus on the commencement of main shaft sinking activities, the commissioning of the bulk power supply 132 kV line and substations and detailed engineering for the underground development. Sustaining capital and project expenditures are expected to be up to $17 million with a focus on completion of a community sports facility, dewatering activities and an expansion of the tailings storage facility.

Lucara Botswana's progressive tax rate computation allows for the immediate deduction of operating costs, including capital expenditures, in the year in which they are incurred.  Based on the updated 2022 revenue guidance of $195 million to $225 million and assuming the underground development expenditures are incurred, the expected tax rate will be 0% for 2022.

CONFERENCE CALL

CONFERENCE CALL

The Company will host a conference call and webcast to discuss the results on Friday, May 6, 2022 at 7:00 a.m. Pacific, 10:00 a.m. Eastern, 3:00 p.m. UK, 4:00 p.m. CET .

Please call in 10 minutes before the conference call starts and stay on the line (an operator will be available to assist you).

Conference ID:
39751892 / Lucara Diamond

Dial-In Numbers:

Toll-Free Participant Dial-In North America                 (+1) 888 390 0546
UK Toll free                                                                         0 800 652 2435
All Other International Participant Dial-In                    (+1) 778 383 7413

Webcast:
To view the live webcast presentation, please log on using this direct link: https://produceredition.webcasts.com/starthere.jsp?ei=1544386&tp_key=18045919de

The presentation slideshow will also be available in PDF format for download from the Lucara website ( Link to presentation ).

Conference Replay:
A replay of the telephone conference will be available two hours after the completion of the call until May 13, 2022 .

Replay number (Toll Free North America)                    (+1) 888 390 0541
Replay number (International)                                        (+1) 416 764 8677

The pass code for the replay is: 044225 #.

On behalf of the Board,

Eira Thomas
President and Chief Executive Officer

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ABOUT LUCARA

Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned Karowe Diamond Mine in Botswana . The Karowe Mine has been in production since 2012 and is the focus of the Company's operations and development activities. Clara Diamond Solutions Limited Partnership ("Clara"), a wholly-owned subsidiary of Lucara, has developed a secure, digital sales platform that uses proprietary analytics together with cloud and blockchain technologies to modernize the existing diamond supply chain, driving efficiencies, unlocking value and ensuring diamond provenance from mine to finger. Lucara has an experienced board and management team with extensive diamond development and operations expertise. Lucara and its subsidiaries operate transparently and in accordance with international best practices in the areas of sustainability, health and safety, environment, and community relations. Lucara has adopted the IFC Performance Standards and the World Bank Group's Environmental, Health and Safety Guidelines for Mining (2007). Accordingly, the development of the Karowe underground expansion project ("UGP") adheres to the Equator Principles. Lucara is committed to upholding high standards while striving to deliver long-term economic benefits to Botswana and the communities in which the Company operates.

The information is information that Lucara is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information was submitted for publication, through the agency of the contact person set out above, on May 5, 2022 at 3:30pm Pacific Time .

NON-IFRS FINANCIAL PERFORMANCE MEASURES

This news release refers to certain financial measures, such as adjusted EBITDA, adjusted operating earnings, operating cash flow per share, operating margin per carat sold and operating cost per tonne of ore processed, which are not measures recognized under IFRS and do not have a standardized meaning prescribed by IFRS. These measures may differ from those made by other corporations and accordingly may not be comparable to such measures as reported by other corporations. These measures have been derived from the Company's financial statements, and applied on a consistent basis, because the Company believes they are of assistance in the understanding of the results of operations and financial position. Please refer to the Company's MD&A for the three months ended March 31, 2022 for an explanation of non-IFRS measures used.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements made and contained herein and elsewhere 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 accurate and such forward-looking information included herein should not be unduly relied upon.

In particular, forward-looking information and forward-looking statements in this news release may include, but are not limited to, information or statements with respect to the equity and project debt financings, the intended use of proceeds, the Company's ability to comply with the terms of the Facilities which are required to construct the Karowe UGP, that expected cash flow from operations, combined with external financing will be sufficient to complete construction of the UGP, the economic potential of a mineralized area, the size and tonnage of a mineralized area, anticipated sample grades or bulk sample diamond content, future production activity, the future price and demand for diamonds, future forecasts of revenue and variable consideration in determining revenue, estimation of mineral resources, exploration and development plans, cost and timing of the development of deposits and estimated future production, permitting time lines, currency exchange rates, success of exploration, requirements for and availability of additional capital, capital expenditures, operating costs, timing of completion of technical reports and studies, tax rates, timing of drill programs, government regulation of operations, environmental risks and ability to comply with all environmental regulations, reclamation expenses, title matters including disputes or claims, limitations on insurance coverage, negotiations and agreements among the Company and the Botswana Mine Workers Union, the completion of transactions and timing and possible outcome of pending litigation, the profitability of Clara and the Clara Platform, and the scaling of the digital platform for the sale of rough diamonds owned by Clara, the benefits to the Company of diamond supply agreements with HB and the ability to generate better prices from the sale of the Company's +10.8 carat production as a polished stone.

There can be no assurance that such forward looking 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 "COVID-19 Global Pandemic" in the Company's most recent MD&A and under the heading "Risks and Uncertainties" in the Company's most recent Annual Information Form, both available at http://www.sedar.com , as well as changes in general business and economic conditions, the ability to continue as a going concern, changes in interest and foreign currency rates, changes in inflation, the supply and demand for, deliveries of and the level and volatility of prices of rough diamonds, costs of power and diesel, impacts of potential disruptions to supply chains, 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), and 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.

LUCARA'S Q1 2022 REVENUE OF $68.2 MILLION REFLECTIVE OF A STRONG START TO 2022 (CNW Group/Lucara Diamond Corp.)

SOURCE Lucara Diamond Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2022/05/c9335.html

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LUC:CA,LUCRF

Mountain Province Diamonds Announces Successful Exploration Update for Kennady North

TSX and OTCQX: MPVD

 Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) (OTC: MPVD) today announces interim exploration results for its 100%-held Kennady North Project. The Kennady North Project consists of over 107,000 hectares of claims and leases that completely surround the Gahcho Kué Diamond Mine. The 2022 exploration program is focussed on finding new kimberlites based on a detailed analysis of historical technical information including ground and airborne geophysics, kimberlite indicator minerals, and geological mapping. Approximately 3,000 of the ongoing 6,000 meter winter drill program have been completed.

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STAR DIAMOND CORPORATION ANNOUNCES FIRST QUARTER 2022 RESULTS

TSX: DIAM

Star Diamond Corporation ("DIAM", "Star Diamond" or the "Company") reports that the unaudited results of its operations for the quarter ended March 31, 2022 will be filed today on SEDAR and may be viewed at www.sedar.com once posted. A summary of key financial and operating results for the three months ended March 31, 2022 is as follows:

Star Diamond Corporation logo (CNW Group/Star Diamond Corporation)

Highlights
  • Reported on technical and joint venture meetings with Rio Tinto Exploration Canada Inc. ("Rio Tinto Canada") concerning the Fort à la Corne mineral properties (referred to by Rio Tinto Canada as the "FalCon" Project) regarding the data analysis and exploration activities that have been undertaken by Rio Tinto Canada over the last two years
  • Provided an update regarding the FalCon 'Orbit' exploration program being conducted by Rio Tinto Canada to review and prioritize the Fort à la Corne kimberlites outside of the Star and Orion South Kimberlites (the "Star – Orion South Diamond Project" or the "Project") which has highlighted the kimberlites of Orion North (K120, K147, K148) as having significant potential and Orion Centre (K145), Taurus (K150, K118, K122) and K119 as having a number of the attributes sought but require further evaluation
  • Announced study results identifying the abundance of Type IIa diamonds in the diamond parcels recovered from the Early Joli Fou ("EJF") Geological Units at Orion North and Taurus Kimberlites
  • Acquired an additional interest in the Buffalo Hills joint venture project
  • Completed a $5.0 million private placement

Overview
Star Diamond Corporation is a Canadian natural resource company focused on exploring and developing Saskatchewan's diamond resources. Star Diamond holds, through a joint venture arrangement with Rio Tinto Exploration Canada Inc. ("Rio Tinto Canada", a wholly-owned subsidiary of Rio Tinto plc or "Rio Tinto"), a 25% interest in certain Fort à la Corne kimberlites (including the Star – Orion South Diamond Project, or "Project"). These properties are located in central Saskatchewan , in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development. Rio Tinto Canada refers to their Fort à la Corne mineral properties as "Project FalCon".

Activities Relating to the Fort à la Corne mineral properties (including the Project)
During technical meetings concerning the FalCon Project held in March 2022 , Rio Tinto Canada indicated to the Company that a number of desktop studies have been undertaken to evaluate the mineability and economic viability of the Project (see News Release dated February 17, 2022 ). Star Diamond recently received presentations from both Rio Tinto Canada and Rio Tinto personnel concerning data analysis and exploration activities that have been undertaken by Rio Tinto Canada over the last two years (see News Release dated March 9, 2022 ). Topics of interest covered during these technical meetings included: 1) Star Kimberlite trench cutter bulk sampling program results, 2) Diamond size and quality analysis, 3) 'Orbit' program update, 4) Mineability study, 5) Geological model and resource update, 6) Community and stakeholder engagement, 7) Environmental and permitting and, 8) Green energy and carbon mineralization. As the Company analyzes the information presented at these technical meetings and materials relating to these topic areas, the Company may provide further details and/or results of these studies.

The FalCon 'Orbit' exploration program conducted by Rio Tinto Canada has resulted in a number of kimberlites being prioritized for additional diamond evaluation work (see News Release dated April 12, 2022 ). Rio Tinto Canada geologists of the Orbit exploration team have, over the past few years, used a spectrum of evaluation techniques to review and prioritize the Fort à la Corne kimberlites outside of the Star and Orion South Kimberlites, which have already been subject to extensive evaluation. This program has highlighted the kimberlites of Orion North (K120, K147, K148) as having significant potential to add to the FalCon Project. Orion Centre (K145), Taurus (K150, K118, K122) and K119 stand out in the field as having number of the attributes sought but require further work to completely evaluate. The locations of these kimberlites relative to Star and Orion South are shown on the map, which is available on the Star Diamond website. Rio Tinto Canada has indicated that it is in the process of developing additional diamond evaluation work to be conducted on these kimberlites. The evaluation techniques used thus far by the Orbit exploration team to prioritize these Orion North, Orion Centre and Taurus Kimberlites have included: componentry method of core logging; diamond inclusion studies; garnet colour studies; trace element geochemistry; thermobarometry; and microdiamond sampling. These studies have highlighted the kimberlites of Orion North (K120, K147, K148) as satisfying Rio Tinto Canada's Ore Grade Width Intercept ("OGWI") requirements and that these kimberlites will require additional evaluation work. Orion Centre (K145), Taurus (K150, K118, K122) and K119 indicate the potential to deliver OGWIs.

The Company recently announced the completion of a major study into the abundance of Type IIa diamonds in the diamond parcels recovered from the Early Joli Fou ("EJF") Geological Units at the Orion North and Taurus Kimberlites. These diamonds were recovered by Star Diamond between 2006 and 2008 from 48-inch large diameter drilling ("LDD") programs. This study confirms that unusually high proportions of Type IIa diamonds are present in both the Orion North and Taurus Kimberlites. Of particular note is the remarkably high proportion of Type IIa diamonds in the Orion North 147/148 EJF (52%) of which 66% of the 24 stones, 3 grainer (0.66 carats) and above are Type IIa. This study also confirms and augments an earlier study of Type IIa diamonds being present in the Fort a la Corne kimberlites with Star at (26.5 percent) and Orion South Kimberlite (12.5 percent) (see News Releases dated June 09, 2010 & March 04, 2019 ). Type IIa diamonds are very rare and account for less than 2 percent of all natural rough diamonds mined from kimberlites. Many high-value, top colour, large specials (greater than 10.8 carats) are Type IIa diamonds, which include all ten of the largest known rough diamonds recovered worldwide.

Activities relating to other mineral properties
The Company recently announced that pursuant to a Quitclaim, Surrender and Assignment of Interest Agreement dated May 11, 2022 , the Company has acquired an additional joint venture interest of approximately 17% in the Buffalo Hills project for nominal consideration (see News Release dated May 12, 2022 ). As a result of the transaction, Star Diamond and Canterra Minerals Corporation each hold a 50% interest in the Buffalo Hills project. Located approximately 400 kilometres  northwest of Edmonton, Alberta, Canada , the Buffalo Hills project is a significant and accessible field of diamond bearing kimberlites, with similarities to the Fort á la Corne kimberlites in Saskatchewan, Canada .

Year to Date Results
For the quarter ended March 31, 2022 , the Company recorded a net loss of $0.9 million or $0.00 per share (basic and fully diluted) compared to a net loss of $1.1 million or $0.00 per share for the same period in 2021. The losses during these quarters were due to operating costs and exploration and evaluation expenditures incurred by the Company exceeding interest income earned on cash and cash equivalents.

During April 2022 , the Company completed a private placement whereby an aggregate of 16,666,667 Units were issued for proceeds of $5.0 million (see News Releases dated April 6, 2022 and April 22, 2022 ). Each Unit was comprised of one common share and one warrant. Each whole warrant entitles the holder thereof to purchase one common share at a price of $0.40 , for a period of two years from the closing of the private placement.

Selected financial highlights include:

Condensed Consolidated Statements of Financial Position

As at

March 31,

2022

As at

December  31,

2021

Current assets

$    3.3  M

$    1.5  M

Exploration and evaluation, capital and other assets

67.7  M

67.9  M

Current liabilities

5.0  M

3.1  M

Non-current liabilities

1.0  M

1.1  M

Shareholders' equity

65.0  M

65.2  M

Consolidated Statements of Loss

Quarter Ended
March 31,

2022

Quarter Ended
March 31,

2021

Interest and other income

$    0.0  M

$    0.0  M

Expenses

0.7  M

1.4  M

Investment in Wescan Goldfields Inc.

(0.2) M

0.3  M

Net loss for the period

0.9  M

1.1  M

Net loss per share for the period (basic and diluted)

0.00

0.00

Condensed Consolidated Statements of Cash Flows

Quarter Ended
March 31,

2022

Quarter Ended
March 31,

2021

Cash flows from operating activities

$   1.1 M

$  (1.6) M

Cash flows from investing activities

0.0  M

0.0  M

Cash flows from financing activities

0.5 M

1.9 M

Net increase in cash

1.6  M

0.3  M

Cash – beginning of period

1.3 M

4.8 M

Cash – end of period

2.9  M

5.1  M

Outlook
The provincial environmental approval of the Project received in 2018, alongside the previous positive federal decision, marked a major milestone for the Project. In addition, the positive results of the 2018 independent PEA show that the Project can be economically developed and operated while providing direct employment for hundreds of people throughout the construction phase and hundreds of people continuously over its estimated 38 year mine life.

The successful completion of the 2017 consolidation of the Fort à la Corne mineral properties (including the Project) and the amended Fort à la Corne joint venture agreement that was announced in December 2021 defines a new phase for the Company. The arrangements announced in December 2021 are intended to ensure that key project milestones, and the certainty associated with them, will have been achieved before Star Diamond has to contribute any additional capital. Star Diamond will have no obligation to fund or contribute to carried interest costs until the commencement of commercial production, which will not occur until after the completion of construction of the diamond mine with it generally operating at certain specified thresholds for 90 days. Once a decision to develop the mine has been made and publicly announced, Star Diamond will have six months before it is required to begin contributing to its share of capital costs and expenditures incurred for construction of the mine.

As of May 12, 2022 , the Company had approximately $3.4 million in cash and cash equivalents (excluding $0.6 million in restricted cash). A portion of the Company's cash and cash equivalents will be used for programs (including remaining flow-through commitments) to further assess, evaluate and advance certain aspects of the Company's mineral properties, as well as for general corporate matters.

About Star Diamond Corporation
Star Diamond Corporation is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of Star Diamond trade on the Toronto Stock Exchange under the trading symbol "DIAM". Star Diamond holds, through a joint venture arrangement with Rio Tinto Canada (a wholly-owned subsidiary of Rio Tinto), a 25% interest in certain Fort à la Corne kimberlites (including the Star – Orion South Diamond Project). These properties are located in central Saskatchewan , in close proximity to established infrastructure, including paved highways and the electrical power grid, which provide significant advantages for future mine development. Rio Tinto refers to their Fort à la Corne mineral properties as "Project FalCon". During 2018, Star Diamond announced the positive results of an independent Preliminary Economic Assessment on the Project. The PEA (on a 100% basis) estimated that 66 million carats of diamonds could be recovered in a surface mine over a 38-year Project life, with a Net Present Value ("NPV") (7%) of $2.0 billion after tax, an Internal Rate of Return ("IRR") of 19% and an after-tax payback period of 3.4 years after the commencement of diamond production (see news release dated April 16, 2018 ).

Caution Regarding Forward-looking Statements

This news release contains forward-looking statements as defined by certain securities laws, including the "safe harbour" provisions of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. Forward-looking information is often, but not always, identified by the use of words such as "anticipate", "believe", "expect", "plan", "intend", "forecast", "target", "project", "guidance", "may", "will", "should", "could", "estimate", "predict" or similar words suggesting future outcomes or language suggesting an outlook. In particular, statements regarding the Company's future operations, future exploration and development activities or other development plans constitute forward-looking statements. By their nature, statements referring to mineral reserves, mineral resources or the PEA constitute forward-looking statements. Forward-looking statements contained or implied in this news release include, but are not limited to, statements relating to the Company's ability to continue as a going concern; statements regarding programs previously performed by Rio Tinto Canada; statements regarding future programs by Rio Tinto Canada; statements related to diamond breakage and other reporting; disclosure regarding the economics and project parameters presented in the PEA, including, without limitation, IRR, NPV and other costs and economic information, carats of diamonds to be recovered, after-tax payback period, tonnes of kimberlite to be mined, carats per tonne to be recovered (grade), diamond prices, project life, life of mine, capital costs, and length of pre-production period; statements related to mineral resources and/or reserves; statements related to the approval of the development of the Star - Orion South Diamond Project; statements relating to future development of the Star - Orion South Diamond Project and associated timelines; statements with respect to environmental permitting and approvals; the Company's need for and intention to seek additional financing; statements with respect to metallurgical and diamond investigations, assessments and test work including diamond breakage studies; the potential proportion of Type IIa diamonds in the Star, Orion South , Orion North and Taurus kimberlites and the potential for the recovery of large, high-quality diamonds.

These forward-looking statements are based on the Company's current beliefs as well as assumptions made by and information currently available to it and involve inherent risks and uncertainties, both general and specific.  Risks exist that forward-looking statements will not be achieved due to a number of factors including, but not limited to, developments in world diamond markets, changes in diamond valuations, risks relating to fluctuations in the Canadian dollar and other currencies relative to the US dollar, changes in exploration, development or mining plans due to exploration results and changing budget priorities of Rio Tinto Canada or the Company, the nature and outcome of studies, analyses, criteria or conditions that Rio Tinto Canada may consider relevant to its assessment of whether to seek to further invest in the Project or seek to develop the Project into an operating mine, the effects of competition in the markets in which the Company operates, the impact of the COVID-19 pandemic, risks related to diamond breakage from extraction and diamond recovery, risks related to the Company's need for additional financing and the Company's ability to raise that financing, the impact of changes in the laws and regulations regulating mining exploration and development, judicial or regulatory judgments and legal proceedings, operational and infrastructure risks and the additional risks described in the Company's most recently filed Annual Information Form, annual and interim MD&A, news releases and technical reports. The Company's anticipation of and success in managing the foregoing risks could cause actual results to differ materially from what is anticipated in such forward-looking statements.

Although the Company considers the assumptions contained in forward-looking statements to be reasonable based on information currently available to it, those assumptions may prove to be incorrect. When making decisions with respect to the Company, investors and others should not place undue reliance on these statements and should carefully consider the foregoing factors and other uncertainties and potential events. Unless required by applicable securities laws, the Company does not undertake to update any forward-looking statement that is made herein.

www.stardiamondcorp.com

SOURCE Star Diamond Corporation

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2022/12/c8881.html

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STAR DIAMOND CORPORATION OBTAINS ADDITIONAL INTEREST IN BUFFALO HILLS JOINT VENTURE

Stock Symbol: DIAM: TSX

Star Diamond Corporation (TSX: DIAM) ("Star Diamond" or the "Corporation") is pleased to announce that, pursuant to a Quitclaim, Surrender and Assignment of Interest Agreement dated May 11, 2022 the Corporation has acquired an additional joint venture interest of approximately 17% in the Buffalo Hills project in north central Alberta, Canada for nominal consideration. As a result of the transaction, Star Diamond and Canterra Minerals Corporation (TSXV: CTM) each hold a 50% interest in the Buffalo Hills project.

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Tres-Or Confirms a Preliminary Prospectus Was Filed by Kiboko for the Amended and Restated Option on It's Fontana Gold Project in Québec

Tres-Or Confirms a Preliminary Prospectus Was Filed by Kiboko for the Amended and Restated Option on It's Fontana Gold Project in Québec

Tres-Or Resources Ltd. (TSXV: TRS) (OTC Pink: TRSFF) ("Tres-Or" or the "Company") announces that as contemplated by the Amended and Restated Option Agreement with Kiboko Gold Inc. ("Kiboko") dated November 30, 2021, a preliminary long form prospectus has been filed and can be found on Kiboko's SEDAR profile. Tres-Or also reports that Kiboko has filed an accompanying Technical Report (NI 43-101 report) titled "Harricana Gold Project Technical Report, Duverny Township, Quebec".

About the Fontana Gold Project (renamed the Harricana Gold Project)

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LUCARA REPORTS VOTING RESULTS FROM ANNUAL MEETING

TSX:LUC) (BSE: LUC) (Nasdaq Stockholm: LUC)

LUCARA REPORTS VOTING RESULTS FROM ANNUAL MEETING (CNW Group/Lucara Diamond Corp.)

Lucara Diamond Corp. ("Lucara" or the "Company") held its Annual General and Special Meeting of shareholders in Vancouver, British Columbia today. Shareholders voted as follows on the matters before the meeting: View PDF version .

Board Members
Shareholders elected the following 7 board members with shareholders represented at the meeting voting in favour of individual directors as follows:

Director

Votes

For

% Votes
For

Votes

Withheld

% Votes
Withheld

Paul Conibear

214,103,414

97.05%

6,501,423

2.95%

David Dicaire

219,605,131

99.55%

999,706

0.45%

Marie Inkster

220,016,073

99.73%

588,764

0.27%

Adam Lundin

199,587,635

90.47%

21,017,202

9.53%

Catherine McLeod-Seltzer

215,615,450

97.74%

4,989,387

2.26%

Peter J. O'Callaghan

213,389,302

96.73%

7,215,535

3.27%

Eira Thomas

214,539,917

97.25%

6,064,920

2.75%

Appointment of Auditors
Shareholders re-appointed PricewaterhouseCoopers LLP as Lucara's auditors with 95.22% of shareholders voting in favour.

Ordinary Resolutions to Share Unit Plan Amendments
Shareholders passed an ordinary resolution to approve certain amendments to the share units plans with 70.22% in favour. The renewal of the Company's Corporation's share unit plan which has been amended to increase the maximum share reservation and to approve the unallocated awards under the Share Unit Plan was approved with 70.21%.

Advisory Resolution on Executive Compensation
Management's approach to executive compensation, also disclosed in Lucara's management proxy circular dated March 23, 2022 was approved with 97.10% of shares represented at the meeting voting in favour.

Following the meeting, the Board of Directors selected Mr. Paul Conibear to serve as Chairman of the Board. Mr. Conibear was originally elected to Lucara's Board in 2007 and had previously served as the Company's Lead Director.

On behalf of the Board,

Eira Thomas
President and Chief Executive Officer

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ABOUT LUCARA
Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned Karowe Mine in Botswana and owns a 100% interest in Clara Diamond Solutions, a secure, digital sales platform positioned to modernize the existing diamond supply chain and ensure diamond provenance from mine to finger. The Company has an experienced board and management team with extensive diamond development and operations expertise. The Company operates transparently and in accordance with international best practices in the areas of sustainability, health and safety, environment and community relations.

The information in this release is accurate at the time of distribution but may be superseded or qualified by subsequent news releases.

The information was submitted for publication, through the agency of the contact person set out above, on May 6, 2022 at 2:45pm Pacific Time .

SOURCE Lucara Diamond Corp.

Cision View original content to download multimedia: http://www.newswire.ca/en/releases/archive/May2022/06/c5661.html

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Mountain Province Diamonds Announces Strong First Quarter Financial Results for 2022

TSX and OTCQX: MPVD

Mountain Province Diamonds Inc. ("Mountain Province", the "Company") (TSX: MPVD) (OTC: MPVD) today announces strong financial results for the first quarter ended March 31, 2022 ("the Quarter" or "Q1 2022") continuing the strong operational and financial performance achieved in 2021 from the Gahcho Kué Diamond Mine ("GK Mine").

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