Resource World Magazine

rather in transition from high-flying M&A to bricks-and-mortar exploration as a way for the mining industry to grow. This is certainly the case for Eurasian's partners like Chilean copper major Antofagasta plc. Rather than float a raft of expensive advanced-project acquisitions, the miner has decidedly pursued a worldwide program of greenfields exploration looking to unearth its next new mine in the field rather than in a boardroom. It's that progressive thinking that's led Antofagasta to sign on as lead partner for one of Eurasian's most recent, and possibly most out-of-the-box, ventures, in Sweden. The Nordic nation has been a focus of late for Eurasian. Management first took the time to assemble a comprehensive database of geological information in that Scandinavian country. Since the completion of that task, they've used this digital master plan to acquire 27 exploration permits across northern Sweden, prospective for copper, gold, and even platinum. Antofagasta liked the ideas here enough to sign up for the whole package – inking a strategic alliance that will see them fund expenses through to feasibility in order to earn up to a 70% interest from Eurasian. Not only did the big firm like Eurasian's project-selection prowess in Sweden, but also the company's operational abilities. After all, it's one thing to draw a line on a map during staking and quite another to snowmobile around the Arctic trying to take samples in heavy vegetation and rock debris. That's where having an eye for good geological talent is also key, according to Eurasian's Greenhoot. "We identify local management teams, and we give them the freedom they need to get the job done," he notes. "We're very decentralized." That strategy is obviously paying off, judging from the great diversity of global climes Eurasian has been able to work in. This might be exactly what the mineral sector needs today – a group of back-to-basics explorationists with the smarts to take innovative ideas into new terrains. Some of the world's biggest mining names certainly seem to think so. n DECEMBER/JANUARY 2014 RW December 2013.indd 43 Lucara Diamond recovers large stones from Karowe Mine The 256.6-carat rough diamond recovered from the Karowe Mine in Botswana, Africa. Photo courtesy Lucara Diamond Corp. L ucara Diamond Corp. [LUCTSX, Botswana, NASDAQ OMX First North] has reported excellent results from its third Exceptional Stone Tender. The special tender of diamonds was completed November 25, 2013 and consisted of 14 single stone lots from the 100%-owned Karowe Mine in north-central Botswana, Africa. The Karowe Mine is a newly constructed state-of-the-art mine that was fully commissioned in the second quarter of 2012. All 14 stones, totaling 1,128 carats were sold for gross revenues of $22.9 million ($20,280 per carat). The highest value stones sold were a 256.6-carat and a 137.9-carat diamond which sold for $4.40 million and $4.28 million respectively. An additional seven diamonds sold for more than $1 million each. The company will hold one more regular tender during the fourth quarter, bringing the total volume of diamonds sold in 2013 to over 420,000 carats as forecast. Lucara also reported the continued recovery of beautiful, exceptionally large stones from the Karowe Mine, including a 167carat diamond and a 122-carat diamond. These stones will be sold on tender in 2014. William Lamb, President and CEO, said, "The company has received tremendous demand for its beautiful Karowe diamonds. This success truly demonstrates how robust the market continues to be for large, high quality diamonds. Globally, diamonds above 100 carats are exceedingly rare, yet since March alone, Karowe has produced 16 diamonds greater than 100 carats each." Diamonds are hosted at the Karowe Mine in a trilobate (three-lobe) kimberlite pipe consisting of a South, Centre and North lobes. Indicated resources stand at 11,046,000 carats with inferred resources of 3,988,000 carats. Lucara received proceeds of $50.9 million ($625 per carat) in the third quarter 2013, of which $10.9 million was received in October for the late September tender. At average operating expenses of $110 per carat, the cash operating margin achieved for the quarter was $515 per carat. Sales during the quarter included one tender of over 80,000 carats and the company's second exceptional-stone tender during the quarter. The company also has a 75% interest in the advanced-stage Mothae diamond mine in Lesotho, Africa, which is on care and maintenance. Lucara Diamond is a member of the Lundin group of mining companies. n www.resourceworld.com 43 12/11/2013 6:12 PM

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