Lucara Diamond Corp.: Mothae Diamond Project Update
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 21, 2008) - Lucara Diamond Corp. ("Lucara" or "the Company") (CNQ:LUCA) and partner Motapa Diamonds Inc. (TSX VENTURE:MTP) are pleased to provide the following update on progress at the Mothae kimberlite project in Lesotho.
Subsequent to the diamond recovery results announced on April 21, 2008, processing of three additional samples has been completed, bringing the total dry tonnes processed to 16,300. This sample tonnage estimate is based on plant weightometer measurements which require survey confirmation.
A total of 480 diamonds, together weighing 234.7 carats, have been recovered. Seventeen diamonds greater than two carats have been recovered and the three largest stones are 10.24 cts, 8.65 cts, and 7.60 cts.
The diamond recovery process at Mothae involves separating heavy mineral concentrate into various size fractions and then passing this material over a continuous grease belt recovery system. All tailings from the grease belt are retained on site in a secure area. Hand sorting of a limited number of audit samples of grease belt tailings has demonstrated that a number of diamonds are not being recovered in this process. As a result, all grease belt tailings will be reprocessed using an alternative technique in order to complete the recovery process and more reliably establish diamond grades.
Notwithstanding the inefficiency of the diamond recovery circuit, kimberlite from the F and G phases of the Mothae pipe have shown the best diamond potential to date and work is in progress to extract the remainder of the planned 30,000 tonne sample from these two phases. A map showing sample locations can be viewed on Motapa's website at www.motapadiamonds.com.
Motapa and Lucara are also pleased to report that the Lesotho Ministry of Natural Resources has approved a one year extension, to June 2009, for the Mothae Prospecting License held by Motapa.
Pursuant to an option agreement with Motapa, Lucara will fund up to US$10 million to earn up to 70% of Motapa's interest in the Mothae project.
The sampling program is being carried out under the supervision of Dr. Tom Nowicki of Mineral Services Canada, a Qualified Person in terms of NI 43-101.
On behalf of the Board,
Lukas H. Lundin, President and CEO
Forward-looking statements: This press release contains statements about expected or anticipated future events and financial results that are forward-looking in nature and, as a result, are subject to certain risks and uncertainties, such as general economic, market and business conditions, the regulatory process and actions, technical issues, new legislation, competitive and general economic factors and conditions, the uncertainties resulting from potential delays or changes in plans, the occurrence of unexpected events and management's capacity to execute and implement its future plans. Actual results may differ materially from those projected by management.