Mining Weekly reports that junior diamond miner Lucara Diamond Corp has been granted a ten-year diamond-mining lease for its Mothae project in Lesotho. The diamond mining company announced plans to begin preproduction test mining to study the kimberlite.

According to the mining agreement reached between Lucara and the government of Lesotho, the State will hold 25% of the Mothae project, and the remaining 75% will be owned by Lucara.

In the course of the initial preproduction test mining stage, a royalty of 4% of the sales value of diamonds produced from Mothae will be paid to the government and once full diamond production is achieved, the royalty will increase to 8% of diamond sales value.

Lucara president William Lamb noted: “This is a major step forward for the Mothae project. Having secured the mining lease, we can now move forward with plans for pre-production test mining which are designed to increase our confidence in the economic potential of the Mothae kimberlite through the validation of diamond grade and value information that was generated in the recently completed bulk sampling program.”

According to a diamond valuation exercise completed in June, the diamond value for Mothae is $549/ct.

Bulk sample information indicates an estimated tonnage potential of between 25-million and 35-million tons and an estimated in situ grade potential of between 3 ct and 4 ct per hundred tons.

The company plans to upgrade its processing facility by February 2010 to include a recovery system for larger diamonds, enhanced water treatment and management systems.