Lucara Diamond has published an updated feasibility study for its Karowe underground project (UGP), estimating total capital costs of $779.2 million and a mine life of 10 years.
The new update to the 2023 feasibility study reflects changes to capital expenditure, project schedule, and applied mining technical solutions for the project. Thanks to the underground expansion, the Karowe diamond mine in Botswana is now expected to generate revenue and cashflow to 2038.
"Lucara is pleased to share the updated feasibility study for the Karowe underground project, 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 underground project," said William Lamb, president and CEO of Lucara.
Total life of mine diamond recoveries are estimated at 4.5 million carats with approximately 28.5 million tonnes of ore to be mined and 37.3 million tonnes of ore to be processed. The company expects net income to top $1.3 billion at Karowe.
Pre-production capital costs for the UGP are estimated at $779 million over an eight-year pre-production construction and commissioning period, of which more than $436 million has been spent on the project over five and a half years to date. Lucara expects to start full production at UGP in the first half of 2028.
The open pit development at Karowe is expected to terminate in the first half of 2026. Production from the underground is planned after open pit operations have been completed and the company will rely on the processing of stockpiled material during the latter part of the underground development.
Theodor Lisovoy, Managing Editor, Rough&Polished
