Name of the Project
Karowe diamond mine underground expansion.

Location
Botswana.

Project Owner/s
Lucara Diamond Corp.

Project Description
The Karowe mine is an existing conventional drill-and-blast openpit operation, with diesel excavators and trucks providing an average 2.6-million tonnes a year of kimberlite feed to the mill. The openpit mine operation is expected to terminate in mid-2025, ending at an elevation of about 700 m above sea level.

The combined openpit and underground indicated resource is estimated at 54.27-million tonnes at 15.3 carats per hundred tonnes for a contained diamond resource of 8.3-million carats, excluding stockpiles. The feasibility on the proposed project has focused on the substantial resources remaining below the economic extents of the openpit.

All underground mined kimberlite will be processed at the existing Karowe processing plant over a 13- to 15-year period, following the cessation of the current openpit operations, which is expected to occur in 2025. Life-of-mine production is estimated at 7.8-million carats.

The underground expansion is expected to extend Karowe’s mine life by 15 years.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at a 5% discount rate, of $718-million and an internal rate of return of 16%, with a payback of 2.8 years, for the combined openpit and underground mine.

Capital Expenditure
Preproduction capital costs for the under-ground project are estimated at $513.7-million.

Planned Start/End Date
Based on construction starting in mid-2020, ore from underground mining will seamlessly integrate into current operations providing mill feed starting in 2023, with a ramp-up to 2.7-million tonnes a year to the processing plant by 2026.

Latest Developments
Based on the positive feasibility study results, Lucara will start the advancement of detailed engineering immediately, in parallel with project permitting, arranging project financing and long-lead item procurement.

The company expects to recover between 370 000 ct and 410 000 ct of diamonds from its Karowe mine in 2020.

Lucara has said that it will spend about $53-million on early works regarding a proposed underground mine at Karowe. The company expects to make an investment decision in the second half of 2020.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Lucara Diamond Corp investor and public relations, tel +1 604 689 7842 or email info@lucaradiamond.com.