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2018 Technical Report for the Karowe Mine: Updated Mineral Resource Estimate

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2018 Technical Report for the Karowe Mine: Updated Mineral Resource Estimate 2018 Technical Report for the Karowe Mine: Updated Mineral Resource Estimate Report prepared for: Lucara Diamond Corp. 885 W Georgia Street Vancouver, BC V6C 3E8, Canada By: Mineral Services Canada Inc. 501‐88 Lonsdale Avenue North Vancouver, BC V7M 2E6 Report date: 9 August 2018 Effective date: 7 August 2018 Karowe Mine 2018 Resource Update Page ii Table of Contents Table of Contents .................................................................................................................................... ii List of Tables .......................................................................................................................................... vi List of Figures ........................................................................................................................................ vii List of Abbreviations .............................................................................................................................. ix 1. Executive summary ......................................................................................................................... 1 1.1 Introduction ............................................................................................................................. 1 1.2 Property location and description ........................................................................................... 1 1.3 Geology ................................................................................................................................... 3 1.4 Exploration, drilling and sampling .......................................................................................... 5 1.5 Mineral Resource Estimate ..................................................................................................... 6 1.6 Mineral Reserve Estimate ....................................................................................................... 7 1.7 Conclusion and recommendations .......................................................................................... 9 2. Introduction .................................................................................................................................... 9 2.1 Scope of work .......................................................................................................................... 9 2.2 Previous Technical Reports ................................................................................................... 10 2.3 Qualified Persons .................................................................................................................. 10 2.4 Principal sources of information ........................................................................................... 11 3. Reliance on other experts ............................................................................................................. 11 4. Property description and location ................................................................................................ 11 4.1 Overview of Botswana .......................................................................................................... 11 4.1.1 Types of mineral license in Botswana ........................................................................... 12 4.1.2 Fiscal regime of Botswana ............................................................................................ 12 4.1.3 Issuer’s Title, Location and Demarcation of Mining License ......................................... 13 4.2 Permitting Rights and Agreements Relating to Karowe Mine .............................................. 15 4.2.1 Surface rights ................................................................................................................ 15 4.2.2 Taxes and royalties ........................................................................................................ 15 4.2.3 Obligations .................................................................................................................... 15 4.2.4 Environmental liabilities ............................................................................................... 16 4.2.5 Permits .......................................................................................................................... 16 5. Accessibility, Climate, Local Resources, Infrastructure and Physiography ................................... 18 5.1 Accessibility ........................................................................................................................... 18 5.2 Access .................................................................................................................................... 18 5.3 Climate .................................................................................................................................. 18 5.4 Infrastructure and local resources ........................................................................................ 19 6. History ........................................................................................................................................... 19 6.1 Early Work: De Beers Prospecting Botswana (Pty) Ltd and De Beers Botswana Mining Company (Pty) Ltd ............................................................................................................................. 19 6.2 Debswana Diamond Company (Pty) Ltd. PL17/86 ................................................................ 20 6.3 De Beers Prospecting Botswana (Pty) Ltd, PL1/97 ................................................................ 20 6.4 De Beers Prospecting Botswana (Pty) Ltd, PL13/2000 .......................................................... 20 6.5 The Boteti Joint Venture ........................................................................................................ 20 6.6 Boteti Exploration (Pty) Ltd and Boteti Mining (Pty) Ltd ....................................................... 21 6.7 Lucara Diamond Corporation ................................................................................................ 21 7. Geological setting and deposit geology ........................................................................................ 23 7.1 Local and regional geology ................................................................................................... 23 7.2 Property geology ................................................................................................................... 24 7.3 Kimberlite geology ................................................................................................................ 25 7.3.1 Units defined by weathering and country rock dilution ............................................... 26 7.3.2 North Lobe kimberlite units .......................................................................................... 27 7.3.3 Centre Lobe kimberlite units ......................................................................................... 27 Karowe Mine 2018 Resource Update Page iii 7.3.4 South Lobe kimberlite units .......................................................................................... 28 7.4 AK6 geological model ............................................................................................................ 34 7.4.1 Shell model .................................................................................................................... 34 7.4.2 Internal domain model ................................................................................................. 35 8. Deposit types and mineralization characteristics ......................................................................... 39 9. Exploration .................................................................................................................................... 43 9.1 Exploration approach and methodology............................................................................... 43 9.2 Geophysical surveys .............................................................................................................. 44 10. Drilling ....................................................................................................................................... 45 10.1 Historical delineation and bulk sample drilling ..................................................................... 45 10.2 Recent delineation and geotechnical drilling ........................................................................ 46 10.3 Drill core sampling ................................................................................................................ 48 11. Sample preparation and analyses ............................................................................................. 50 11.1 Historical samples ................................................................................................................. 50 11.1.1 LDD reverse flood, 23" drill samples ............................................................................. 50 11.1.2 Bulk density samples ..................................................................................................... 51 11.1.3 Microdiamond samples................................................................................................. 51 11.2 Petrography samples ............................................................................................................ 51 11.3 Bulk density samples ............................................................................................................
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