Lucara Diamond Corp. has filed an updated technical report detailing the feasibility study for the underground expansion at the Karowe Diamond Mine in Botswana.
This report, titled “Karowe Mine – Botswana 2023 Feasibility Study Technical Report,” outlines the projections and expectations for the extension of the mine’s operational life and its impact on diamond recovery, revenue generation, and stakeholder benefits.
Key Highlights and Implications
The updated feasibility study showcases the ambitious plans to extend the Karowe mine’s life by 15 years through an underground expansion project (UGP). The mine, renowned for its large, high-value type IIa diamonds, is positioned in one of the globe’s most diamond-rich areas. The significance of this expansion is multi-faceted, involving considerable economic, technical, and environmental considerations.
Economic and Operational Prospects
- Extension of Mine Life: The project aims to double the mine’s operational longevity, with projections indicating the recovery of 6.8 million carats over the total life of the mine.
- Revenue and Cash Flow: Pre-production capital costs are estimated at $683 million, with the UGP expected to generate $1.1 billion in cash flow, a testament to the project’s financial viability and the high-value diamond potential of the South Lobe.
- Financing and Resources: The project is reported to be fully financed, including a revised debt package to support underground development. This financial structuring ensures that the project has the capital required for its ambitious targets without compromising its existing operations.
Technical and Environmental Enhancements
- Underground Mining Operations: The UGP is set to mine approximately 42.4 million tonnes of ore, with the South Lobe of the AK06 kimberlite being the primary focus. This area is notable for producing some of the world’s largest diamonds, underlining the strategic importance of this expansion.
- Infrastructure and Design: The report details the construction of a production shaft and a ventilation shaft, essential for supporting the increased capacity of the underground mine. These developments are crucial for maintaining operational efficiency and worker safety.
- Environmental Considerations: The feasibility study also outlines plans for fine tailings storage and groundwater management, indicating a conscientious approach to environmental stewardship alongside the expansion efforts.
William Lamb, President and CEO of Lucara Diamond Corp., “Lucara is excited to share the updated Feasibility Study for the Karowe Underground Expansion Project, which reinforces our strategic decision to extend mine life and continue to generate benefits for our stakeholders.”
This project not only marks a pivotal development for Lucara but also for the global diamond industry, signalling continued growth, innovation, and commitment to sustainable practices..
