Lucara Diamond (TSX: LUC) has provided an update on the Karowe underground diamond mine expansion, with total pre-production costs now estimated at $683 million, up 25% from the previous estimate of $547 million.
Underground production will be delayed to the first half of 2028, rather than the second half of 2026 as originally planned.
However, the company insists that the project remains technically and economically viable. The revenue profile will be adjusted to reflect the processing of lower grade stockpiles when the open pit ore is exhausted in 2026 and before the underground mine begins production. Milling will continue at the current rate of approximately 7,200 tpd during this period.
The underground project schedule has been delayed by longer than anticipated grouting activities due to high water volumes and the time required to transition to the main mining phase of the project.
Despite these challenges, the project continues to deliver strong economics that will pay back capital in less than three years and add approximately C$4 billion in revenue from an extended mine life to at least 2040 using conservative diamond price assumptions,” said Lucara CEO Eira Thomas.
“The project also comes at a time when the long-term outlook for the diamond market is stronger than it has been in many years, providing an exciting growth opportunity for our shareholders and stakeholders in Botswana.”
