The Karowe openpit
Canada-headquartered Lucara Diamond Corp has published the results of an updated feasibility study on the Karowe Underground Expansion Project (UGP), detailing an estimated preproduction capital cost for the UGP of $683-million.
The Karowe UGP is also projected to generate $1.1-billion in cash flow, extend the overall Karowe mine life by 15 years and result in 6.8-million carats being recovered over the mine life.
Karowe is located in north-central Botswana and has produced four diamonds weighing more than 1 000 ct each from an openpit operation.
The openpit mine operations are expected to reach the end of their life by mid-2025. Lucara has built up three years’ worth of surface stockpiles to consume while underground operations are developed and ramped up.
The underground expansion is expected to double the mine life and to generate significant revenue and cash flow out to 2040, extending benefits to the company, its employees, shareholders, communities surrounding the mine and Botswana.
"Lucara is excited to share the updated feasibility study for the Karowe UGP, which reinforces our strategic decision to extend mine life and continue to generate benefits for our stakeholders.
“Karowe is a world-class mine, and we look forward to continuing to recover large, exceptional diamonds from the South Lobe at Karowe,” comments Lucara president and CEO William Lamb.