Name of the Project
Karowe underground expansion project (UGP).

Location
North-central Botswana.

Project Owner/s
Canadian diamond mining company Lucara Diamond Corp.
 
Project Description
The operating Karowe openpit diamond mine is a conventional load-and-haul operation, with operations expected to terminate in mid-2025 at an elevation of 713 metres above sea level (masl). 

The underground development is expected to extend Karowe's mine life beyond 2040 and is designed to support a 2.7-million-tonne-a-year mining operation and processing plant, which will be focused on the South Lobe of the AK06 kimberlite.

The project will involve the extraction of an estimated 400 vertical metres of the South Lobe from 310 masl (700 m below surface) to the bottom of the depleted openpit about 710 masl (300 m below surface).

The project will include an 8.5 m completed internal-diameter production shaft, about 767 m deep and equipped to hoist a nominal 7 400 t/d of ore and additional development waste; and a 6 m completed internal-diameter unequipped ventilation shaft with a planned final depth of 729 m.

Total life-of-mine diamond recoveries are estimated at 6.8-million carats.

Potential Job Creation
None stated.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Preproduction capital costs for the underground project are estimated at $683-million.

Planned Start/End Date
Capital will be expended over an eight-year preproduction construction and commissioning period until the second half of 2027. Full-scale underground production is planned for the first half of 2028.

Latest Developments
Lucara Diamonds has terminated its engineering, procurement, and construction management contract with JDS Energy & Mining (JDS), effective March 31, as it transitions to owner-managed operations at the UGP.

Lucara has entered into a master service agreement (MSA) with JDS to complete specific engineering components while all site-based contracts and activities have been transferred under Lucara’s direct oversight.

Lucara expects the transition to enhance cost control, improve operational efficiency, and provide greater flexibility in decision-making. By taking direct management of critical project milestones, Lucara aims to leverage its in-house expertise to advance the UGP more effectively.

Lucara has acknowledged JDS’s contributions and has said it looks forward to the firm’s continued involvement under the MSA in specific engineering aspects.

Meanwhile, Lucara has reported that the project has made significant progress, with the production shaft now exceeding 720 m in depth and the ventilation shaft surpassing 680 m.

Further advancements have been made on the production, man and materials winder building, while most of the required surface infrastructure, including bulk air coolers, is already in place.

Key Contracts, Suppliers and Consultants
JDS Energy & Mining (technical report).

Contact Details for Project Information
Lucara Diamond Corp, tel +1 604 674 0272 or email info@lucaradiamond.com.