Slide 1: A New Diamond Producer
A New Diamond Producer PDAC March 2013
Slide 2: Cautionary Statement
Cautionary Caut o a y Statement State e t Forward‐looking information This document contains statements about expected or anticipated future events and financial results of Lucara that are forward‐looking in nature and are based on Lucara’s current expectations, estimates and projections. This forwa
Slide 3: 2013 Outlook
2013 0 3 Out Outlook oo Karowe • 2013 carat production target of 400,000 carats • Operating costs of $23 per tonne • Total of 8 diamond sales planned for 2013 with estimated revenues of approximately $90 million Mothae • Trial mining phase completed in September 2012 • Mothae Resource Estimate Compl
Slide 4: Capital Structure
Capital Cap ta Structure St uctu e • Listed Exchanges under Symbol “LUC” • TSX • OMX (Sweden) • BSE (Botswana) • Issued share 376M • Fully diluted shares 381M • Options 4.3M (C$ 0.93 WA exercise price) • Warrants Nil • Convertibles Nil • Market Cap C$ 237 million (Jan, 2013) • D Debt b US$ 50 0 mill
Slide 5: African Focus
African ca Focus ocus 60% off worlds ld roughh diamond di d originate from Africa Kimberlite Mines and Projects 1. Catoca 8. Cullinan 15. Liqhobong 2. Letlhakane 9. Ghaghoo 16. Kao 3. Orapa 10. Jwaneng 17. Koidu 4. Damtshaa 11. Finsch 5 5. Williamson 12 12. Kimberley 17 6. Murowa 13. Koffiefontein 7
Slide 6: Karowe Mine
Karowe a o e Mine e When Lucara acquired a stake in the Karowe project in Q4, 2009 it was simply two sample trenches After completing construction of the mine over an 18 month pperiod,, the mine was ramped up to design capacity in 5 months, August 2012. 6
Slide 7: Karowe – The Mine
Karowe a o e – The e Mine e The pit at Karowe has started to look like a mine Current Mining Activity Current mining is focused on the North 320m Weathered Lobe with stripping pp g of the Centre which Kimberlite forms the majority of material processed in 2013 30m Unaltered 43 Kimberlite Diluted Kim
Slide 8: Karowe – The Plant
Karowe a o e – The e Plant a t Mill and crushed ore stockpile DMS, Recovery, Sorthouse and tailings Systems 8
Slide 9: Karowe Mine – Status Update
Karowe a o e Mine e – Status Update • Management and operations team fully staffed and operationally mature • Mine iis currently Mi tl running i att or above b design capacity • Process water being effectively managed • Five diamond sales took place in 2012 with gross revenues of >$54 million • 2012
Slide 10: Karowe Mine – Diamond Sales
Karowe a o e Mine e – Diamond a o d Sales Sa es • First two sales held with viewing in Karowe Diamond Sales and Revenue 2012 Gaborone only 70,000 • Sales in Sep, Nov and Dec with viewing 60,000 in Gaborone and Antwerp – increased 50,000 client viewings g byy >150% • Larger parcel of diamonds for fin
Slide 11: Karowe Diamonds
Karowe a o e Diamonds a o ds Diamond Sorters • Confirmed recovery of Type IIa diamonds from Karowe • Resource performing accordingg to expectations p 5 – 10 carat High White 11
Slide 12: Karowe Blue Diamonds
Karowe a o e Blue ue Diamonds a o ds The Upside of a Unique Product 9.46 carat Blue Diamond • Sold on tender in Nov for $4.5 million or $477,272 $477 272 per carat • Second 4.77 carat blue diamond recovered in Dec 2012 12
Slide 13: Karowe Mine
Karowe a o e Mine e Safety Health Safety, Health, Environmental and Socio‐Economic • Exemplary p y safetyy record with 2.7 million man hours without a lost time injury (March 2010) • Government approved EIA and EMP • Global Reporting Initiative (“GRI”) – first report in Q1, 2013 • Good relationships
Slide 14: Mothae Mine – Resource
Mothae ot ae Mine e – Resource esou ce • Trial Mining complete in September 2012 – site put on care and maintenance • g more than 20,000 Three diamond sales totaling , carats with gross g revenues of $16.1 million • Mothae Update – Complete Q1, 2013 – Tonnage potential – 39 Mt to 300m depth at 2.9 c
Slide 15: Mothae – Diamonds
Mothae ot ae – Diamonds a o ds Mothae Diamonds 84ct Type Ia recovered in two pieces 56.5ct Type IIa – Sold for $ 2.09M ($ 37,019 per carat) 3gr Run‐of‐mine 13.8ct Type IIa – Sold for $ 530,400 28.9ct Type IIa – Sold for $ 1.65M ($ 43,000 per carat) ($ 57,113 per carat) 15
Slide 16: Shareholder Value
Shareholder S a e o de Value a ue • Focus in 2013 – Carat production and sales of 400,000 carats – Sustainable production of 2.5 million tonnes – Revenue generation of ~$90 million – Mothae – further understanding of development options • Joined the exclusive club of diamond producers – Karowe Mine
Slide 17: Contact Information
Contact Co tact Information o at o Ph. 604‐689‐7842 lucara@namdo.com ne and Fax Email and Web Address Suite 2000 885 West Georgia St. Fx. 604‐689‐4250 Vancouver, B.C. www.lucaradiamond.com Canada Phon V6C 3E8 17
Slide 18: Management and Directors
Management a age e t a and d Directors ecto s William Lamb Willi L b – President P id t & CEO CEO, DiDirector t Eira Thomas – Director – Manager of De Beers’ Victor diamond mine – A respected Canadian geologist processing facilities with over 20 years of responsible for the discovery of the Diavik e