By furnishing Karowe Under Ground Project [UGP] update, Lucara Diamonds reported, the UGP is designed to access the highest value portion of the Karowe orebody, with initial underground carat production predominantly from the EM/PK(S) unit. The UGP has the potential to extend the mine life to beyond 2040.
An update to the Karowe UGP schedule and budget was announced on July 16, 2023. The anticipated commencement of production from the underground is H1 2028. The revised forecast of costs at completion is $683.4 million. At March 31, 2025, capital expenditures of $380.0 million had been incurred and further capital commitments of $77.9 million had been made.
With the 2023 update to the UGP schedule and budget, the Karowe Mine production and cash flow models were updated for the revised project schedule and cost estimate. Open pit mining is expected to continue to provide mill feed until the end of the year.
Stockpiled material (North, Centre, South Lobe) from working stockpiles and life-of-mine stockpiles is expected to provide mill feed through 2027 when UGP development ore is scheduled to start offsetting stockpiles with high-grade ore from the underground development. Full scale underground production is planned for H1 2028.
The Company continues to explore opportunities to further mitigate the impact on the financial model. A total of $19.2 million was spent on the UGP in Q1 2025 for the following shaft, lateral development.
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