Slide 1: 2018 Karowe Mineral Resource Update
2018 KAROWE MINERAL RESOURCE UPDATE June 27, 2018 1
Slide 2: Cautionary Statement
Cautionary Statement Forward‐looking information 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
Slide 3: 2018 Updated Mineral Resource
2018 Updated Mineral Resource • Mineral Resource Update prepared in accordance with National Instrument M/PK(S) 43-101 (NI 43-101) EM/PK(S) • Successful reclassification to Indicated Resource of the AK06 kimberlite between 600 and 400 metres above Base LoM OP sea level (masl) 600 masl OLD Base IND •
Slide 4: Mineral Resource Statement
Mineral Resource Statement Table 1: Statement of Remaining Mineral Resources in the AK06 kimberlite The reported resources are those remaining (including stockpile material) as of 26 December 2017. 1. m3 = million cubic metres, 2. tpm3 = tonnes per cubic metre, 3. Mt = million tonnes, 4. Mct = milli
Slide 5: Mineral Resource Statement: South Lobe
Mineral Resource Statement: South Lobe Table 1: Statement of Remaining Indicated Mineral Resources in the South Lobe: AK06 kimberlite The reported resources are those remaining (including stockpile material) as of December 2017. 1. m3 = million cubic metres, 2. tpm3 = tonnes per cubic metre, 3. Mt =
Slide 6: Highlights
Highlights • 7.9 million carats hosted in 57.85 million tonnes, at an average grade of 13.7 cpht with an average diamond value of US$ 673 per carat • New base of the Indicated Mineral Resource is at 400 masl (600 metres below surface) • Updated size distribution and value models which reflect diamon
Slide 7: Geological Model Update
Geological Model Update • The 2018 pipe shell model is defined by a total of 154 pierce points in 71 core drill holes North • The shell extends from surface (1000 masl) to an elevation of 256 masl Centre • The EM/PK(S) domain represents approximately 23% (by mass) of the South pipe infill above 600
Slide 8: South Lobe Geological Model Update
South Lobe Geological Model Update 2018 Model with 2013 EM/PK(S) 2018 Model 923 Elev M/PK(S) M/PK(S) EM/PK(S) 2 0 1 3 E Base LOM Pit 720masl M 720masl P 2013 Base IND K 600masl S 600masl EM/PK(S) EM/PK(S) 400masl 2013 Base INF 2018 Base IND 400masl 2018 Base INF 8
Slide 9: Grade Estimates
Grade Estimates • Grade estimates above 600 masl are restated with minor modifications from the previous Mineral Resource Estimate. Grades are based on a well-distributed LDD sample dataset that supports the interpolation of a local grade model into the block model • Below 600 masl grade has been es
Slide 10: Mining: Impact of EM/PK(S)
Mining: Impact of EM/PK(S) • Gain in mining along SE quadrant of South Lobe, 472 ct recovered grade circa 17- 20cpht, coarse SFD (>6 wt.% up to 10 wt.%), good plant throughput, moderate yield 327 ct • Recovery of a number of high value diamonds, major contribution to Q2 revenue has been realized, on
Slide 11: EM/PK(S) Impact
EM/PK(S) Impact South Lobe Plan View : 920masl TR_O1 Nov/15 • 02/18 Sampling of EM/PK(S), coarse SFD (9.5wt.% specials), MPKS • 47 diamonds > 10.8ct, 6>50ct, 1>100ct • Observed price per carat of $753/ct • Nov 2015 – TR_O1 – now shown to to lie within EMPKS : circa $150 million in EMPKS revenue, pro
Slide 12: Recoverable Grade Models with depth
Current Sump Recoverable Grade Models with depth LoM Pit Base Above 600masl –soft boundaries 2013 INF Below 600masl – hard boundaries Increase in South Lobe grade results from greater 2018 IND Base volume of EM/PK(S) 12
Slide 13: Diamond Value / SFD’s
Diamond Value / SFD’s • In excess of 2 million carats of diamond produced from AK6 have been sold up to the end of Q1 2018 generating revenues of US$1.25 billion for an average price of US$606 per carat • 168 diamonds have sold for > US$1 million each
Slide 14: Consistency
Ns LUCARA DIAMOND Consistency $/CT CONTRIBUTION TO OVERALL AVERAGE PRICE * REGULAR $/Total Ct Sold EXCEPTIONAL $/Total Ct Sold 700 600 500 400 300 200 100 2012 2013 2014 2015 2016 2017 2018** 14 Sct °
Slide 15: Production Data for SFD Models
Production Data for SFD Models 15
Slide 16: Value Models
Nise Value Models i LUCARA DIAMOND Size Class Value estimate (USS per carat) Value distribution model (USS per carat) North Centre South North Centre South +10.8ct' 1,425 5,849 20D 1,600 6,050 6-10ct 1,033 1,082 1,064 1,127 1,357 1,218 3-5ct 753 623 671 808 651 677 8-10er 451 406 438 484 436 445 3-6
Slide 17: Recoverable Average Price Models
Recoverable Average Price Models Average value Lobe (US$/ct) North 222 Centre 367 South 716 A single size distribution model and a single value distribution model has been used to estimate average value in the South Lobe. This approach may be revised as more discrete production and sales results bec
Slide 18: Summary
Summary • Consistent recovery of large high-value diamonds through top 100 m of mining in South Lobe • Confirmation of large high-value diamonds in both main kimberlite units of the South Lobe • Continuity of these main units throughout the open pit resource and now down to at least 400 masl • Conti
Slide 19: Next Steps
Next Steps • Mineral Resource Update will be used for mine planning and to support the preparation of feasibility- level studies for the potential development of an underground mine • An updated LOM open pit plan will be developed • Additional studies to determine a drill program to increase geologi