Shares in Lucara Diamonds spike as 257 carat stone recovered

Shares in Lucara Diamond Corp. (TSE:LUC) were up 3 per cent in early trading Wednesday on news that the Vancouver-based miner had recovered a 257 carat diamond from its Karowe Mine in Botswana.
 
In the year to date alone, the company, which has concentrated its efforts at the site over the past 6 months on the Centre and South lobes of the AK6 kimberlite, has reported the recovery of 47 diamonds of sizes greater than 50 carats, including 14 that exceeded 100 carats. The diamond exploration and development company plans to sell the 257 carat stone on tender in the remaining quarter of 2013.
In addition to the excavation of the large diamond, Lucara also closed its sixth rough diamond tender for the year, where all lots were sold with very strong results, which are to be reported in the company’s third quarter results due for release in early November.
"The Karowe mine continues to outperform with the consistent recovery of large, high value diamonds,” said president and CEO William Lamb in a company statement released with the announcement.
“The recovery of this magnificent 257 carat diamond, along with the recovery of a significant parcel of larger stones over the past 6 months, strengthens our understanding of the resource at Karowe," he said, adding that revenues generated from the sale of these diamonds will be used to reduce debt and strengthen Lucara's balance sheet.
"With the challenges currently facing the rough diamond market, the demand for the high quality goods produced by Karowe has remained consistently high.”
Lucara's share price had reached $1.03 as of 9.45am EST in Toronto, up from previous close of $1.00.