Lucara Diamond Corporation has completed an updated feasibility study for the underground project at the Karowe diamond mine. The purpose of this update is to reinforce the company’s strategic decision to extend the operational life of the Karowe mine, ensuring that value and benefits continue to be delivered to all stakeholders associated with the project.
Lucara president and CEO William Lamb expressed optimism about the continued recovery of large, exceptional diamonds from the underground project. He highlighted that Karowe remains the only diamond mine globally to have recovered nine diamonds weighing more than 1,000 carats each.
The underground project at Karowe is projected to generate both revenue and cash flow through 2038, with a pre-production capital cost of $779 million. To date, Lucara has invested $436 million in the underground project over the past five years.
CEO Lamb expects that the remaining pre-production capital cost of $343 million will be covered by a mix of operating cash flow, as well as new equity or debt financing. The company is in discussions with its existing lenders and major shareholder to evaluate available financing options.
The underground project currently holds an after-tax net present value of $432 million.
When production from the underground project begins in the first half of 2028, the company anticipates generating over $1.3 billion in net income over the course of the project’s mine life.
Lamb explains that the underground project targets the highest-value domain of the South Lobe of the AK6 kimberlite, which extends below the current open pit. The project is being developed to support a 2.85-million-tonne-per-year underground mine and processing plant, especially as the Karowe open pit mining operations are scheduled to conclude in the first half of this year.
During the later stages of the underground project’s development and until full production begins in the first half of 2028, Lucara will process stockpiled ore.