Canada-based Lucara Diamond Corp has released the findings of an updated feasibility study on the Karowe Underground Expansion Project (UGP), outlining an estimated preproduction capital cost of $683 million.
Situated in north-central Botswana, the Karowe UGP is anticipated to yield $1.1 billion in cash flow, prolong the Karowe mine’s lifespan by 15 years, and recover 6.8 million carats over its operational duration.
Karowe, known for producing four diamonds weighing over 1,000 carats each from its open-pit operations, is nearing the conclusion of its open-pit mine activities, expected by mid-2025.
Meanwhile, Lucara has amassed three years’ worth of surface stockpiles to utilize during the development and scaling-up of underground operations.
The expansion into underground mining is predicted to double the mine’s lifespan, bringing substantial revenue and cash flow until 2040.
This extension is poised to benefit Lucara, its employees, shareholders, local communities, and Botswana as a whole.
Lucara’s President and CEO, William Lamb, expresses enthusiasm about the updated feasibility study’s outcomes, affirming the company’s commitment to extending mine life and delivering value to stakeholders.
He emphasizes Karowe’s status as a premier mine and anticipates continued recovery of large, exceptional diamonds from its South Lobe.
