A cash flow of $1.1bn is expected to be generated by the UGP at the Karowe diamond mine
Lucara Diamond estimates pre-production capex of $683m for the underground expansion project at the Karowe diamond mine in Botswana. (Credit: Lucara Diamond)
Lucara Diamond has increased the pre-production capital costs (capex) required to develop the underground expansion project (UGP) at the Karowe diamond mine in Botswana to $683m, based on the results of the updated feasibility study (FS).
According to underground FS published in November 2019, the diamond exploration and mining company estimated a pre-production capex of $514m for the underground expansion.
JDS Energy & Mining prepared the updated FS for Lucara Diamonds.
The pre-production capex will be spent over an eight-year pre-production construction and commissioning period until the second half of 2027. Three and a half years of this period have been completed, said Lucara Diamond.
A cash flow of $1.1bn is expected to be generated by the UGP at the Karowe diamond mine.
As per the updated FS, the mine life will be extended by 15 years and the Karowe UGP’s total life of mine diamond recoveries are estimated to be 6.8 million carats.
Located in north-central Botswana, the Karowe diamond mine produces large, high value type IIa diamonds. It is said to be the only diamond mine to have produced four diamonds over 1,000 carats in size.
The underground expansion at the Karowe mine is aimed to double the mine life.
Lucara Diamond president and CEO William Lamb said: “Lucara is excited to share the updated Feasibility Study for the Karowe Underground Expansion Project, which reinforces our strategic decision to extend mine life and continue to generate benefits for our stakeholders.”
The company said that the production from the Karowe UGP is planned after the completion of open pit operations.
Lucara Diamond intends to rely on the processing of stockpiled material during the latter part of the underground development and the ramp-up to full production is slated for Q1 2028.
The Karowe diamond mine’s currently operating open pit is a conventional load and haul operation. The open pit mine operations are anticipated to be terminated in mid-2025.