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LUCARA PROVIDES KAROWE UNDERGROUND EXPANSION PROJECT UPDATE
LUCARA PROVIDES KAROWE UNDERGROUND EXPANSION PROJECT UPDATE Canada NewsWire ...
About this update from Lucara Diamond Corp.
[{"type":"text","content":"\n \n \n \n LUCARA PROVIDES KAROWE UNDERGROUND EXPANSION PROJECT UPDATE\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n VANCOUVER, BC\n \n \n ,\n \n \n July 16, 2023\n \n \n /CNW/ - (TSX: LUC) (BSE: LUC) (Nasdaq Stockholm: LUC)\n \n \n Lucara Diamond Corp. (\"Lucara\" or the \"Company\") provides an update on the Karowe Underground Expansion project (the \"UGP\"). The Karowe UGP is designed to access the highest value portion of the Karowe orebody, extend mine life to at least 2040 and deliver approximately\n \n $4 billion\n \n in additional revenues using conservative diamond price assumptions which are un-escalated and exclude exceptional stone revenues.\n \n View PDF version.\n \n \n \n Management initiated an update to the UGP schedule and budget in response to slower than planned ramp up to expected sinking rates, and, to account for time incurred to date, as well as for anticipated future grouting programs.  Grouting programs took longer than anticipated due to a combination of high-water volumes in the sandstone lithologies between 870 and 752 metres above sea level in depth (144 metres to 262 metres below the shaft collar) combined with technical challenges associated with the transition to main sinking.  The updated schedule incorporates a 28% increase in the duration of construction, extending the anticipated commencement of production from the underground from H2 2026 to H1 2028.  As a result, the revised forecast of costs at completion is\n \n $683 million\n \n , a 25% increase to the\n \n May 2022\n \n estimated capital cost of\n \n $547 million\n \n .\n \n \n The project remains technically and economically feasible, however, the impact of actual and modelled delays changes the revenue profile due to the use of lower-grade, stockpiled ore for mill feed rather than high-grade ore from the underground as previously planned.  Sufficient surface stockpiles of South, Centre and North Lobe kimberlite ore are available to maintain current, un-interrupted mill feed to the plant for the duratio...