Lucara Estimates 4.5 Million Carats from Karowe Underground Mine in Botswana
Canadian miner Lucara Diamond Corporation has confirmed that the underground expansion of its Karowe diamond mine in Botswana could recover approximately 4.5 million carats over a projected mine life of ten years, according to an updated technical report.
The company undertook the update to its underground feasibility study to reinforce its strategic decision to extend the life of the Karowe operation and continue delivering long-term value to shareholders, employees, and the host country.
Lucara President and Chief Executive Officer William Lamb said the company expects the underground project to continue producing large, high-value diamonds. Karowe is the only diamond mine globally to have recovered nine diamonds weighing more than 1,000 carats, underscoring the exceptional quality of the orebody.
The underground project is forecast to generate revenue and cash flow through to 2038, supported by an estimated pre-production capital cost of $779 million.
Over the past five years, Lucara has already invested $436 million in advancing the underground development.
Lamb said the remaining pre-production capital requirement of $343 million is expected to be funded through a combination of operating cash flow and additional equity or debt financing.
The company is currently engaging with existing lenders and its major shareholder to evaluate the most suitable financing structure.
At present, the underground project has an after-tax net present value of $432 million. Once underground production begins in the first half of 2028, Lucara expects the project to generate more than $1.3 billion in net income over its life.
The underground development targets the highest-value domain of the South Lobe of the AK6 kimberlite, which extends below the current open-pit operation.
The project is designed to support a 2.85-million-tonne-per-year underground mine and processing plant, providing continuity as open-pit mining at Karowe concludes in the first half of this year.
During the latter stages of underground development, Lucara plans to process stockpiled ore until the operation ramps up to full underground production in the first half of 2028.
