The Karowe, Under Ground Production (UGP) is designed to access the highest value portion of the Karowe orebody, with initial underground carat production predominantly from the highest value eastern magmatic/pyroclastic kimberlite unit. The Karowe UGP is expected to extend mine life to at least 2040.
On July 16, 2023, an update to the Karowe UGP schedule and budget was announced. The anticipated commencement of production from the underground is H1 2028. The revised forecast of costs at completion is $683.0 million (including contingency). As at March 31, 2024, capital expenditures of $332.5 million had been incurred and further capital commitments of $64.4 million had been made.
With the update, the Karowe Mine production and cash flow models were updated for the revised project schedule and cost estimate.
Open pit mining will continue until mid-2025 and provide mill feed during this time. Stockpiled material (North, Centre, South Lobe) from working stocks and life of mine stockpiles will provide uninterrupted mill feed until late 2026 when Karowe UGP development ore will begin to offset stockpiles with high-grade ore from the underground production feed planned for H1 2028.
The long-term outlook for diamond prices, combined with the potential for exceptional stone recoveries and the continued strong performance of the open pit could mitigate the modelled impact on project cash flows due to the changes in schedule. The Company continues to explore opportunities to further mitigate the modelled impact.
During the three months ended March 31, 2024, a total of $17.9 million was spent on the Karowe UGP development, surface infrastructure and ongoing shaft sinking activities.
