Lucara Diamond has released the findings of a recent feasibility study on the Karowe Underground Expansion Project (UGP), which projected a preproduction capital cost of $683 million.
The UGP is expected to generate a substantial amount of cash flow, significantly extending the overall Karowe mine life by 15 years.
The open-pit mine operations are projected to conclude by mid-2025.
Additionally, it is projected that 6.8 million carats will be recovered throughout the mine's extended lifespan.
"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,” said Lucara chief executive William Lamb.
Lucara has accumulated enough surface stockpiles to sustain operations, while underground operations are being developed and expanded.
The underground expansion is anticipated to significantly extend the mine's lifespan and expect substantial revenue and cash flow projections that stretch to 2040, bringing advantages to the company, its employees, shareholders, and the communities neighbouring the mine in Botswana.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
