The Karowe underground expansion project, which continued to advance in 2020 under a revised $22-million budget in response to the covid-19 pandemic, focused on time critical path items, detailed engineering and design, and limited earthworks and geotechnical studies.
Moving the mine underground is expected to take five years and extend its productive life by 20 years — until 2041.
The move will allow Lucara to exploit the highest value part of the orebody first and generate over $5.25 billion in gross revenue.
Financing options
Lucara currently continues to explore debt financing options for the $514 million project as the figure would exceed the company’s cash flow from operations during the construction period.
The miner anticipates to have financing in place by the second half of 2021.
Karowe is one of the world’s most prolific sources of large, high value type IIA diamonds.
It began commercial operations in 2012 and has already become the only mine in recorded history to have yielded two 1,000+ carat diamonds — the 1,758 carat Sewelô and the 1,109 carat Lesedi La Rona.
