Lucara Diamond Corp. in an update on the ongoing Feasibility Study for a potential underground operation at the Company's 100% owned and operated Karowe Diamond Mine in Botswana confirmed that a portion of the South Lobe contained a higher volume and higher value ore. 

Mid-last year, a study had moved the classification of resources from “inferred” to “indicated”. Lucara said as per its latest study, Indicated Resources increased by 54% in the South Lobe, and confirmed increased contribution of EM/PK(S), a higher grade, higher value ore unit, with depth.

Following the Preliminary Economic Assessment (PEA), Lucara had undertaken a Feasibility Level study to examine the prospects for a potential underground operation at the Karowe, with the aim of extending mine-life from 2026 to at least 2036.

Out of a budget of US$ 29 million sanctioned in 2018 for the study, US$ 23 million were spent on a programme which included “a mineral resource update, geotechnical drilling of the country rock and AK06 kimberlite, hydrogeological drilling and modelling, and mining trade off studies to address risks and issues identified during the PEA”.

 Eira Thomas, Lucara CEO, commented: "The updated mineral resource completed in 2018 highlighted the important contribution of the higher grade, higher value EM/PK(S) geological unit as we mine deeper in the south lobe and has necessarily re-focused our approach to the Karowe Underground study.”

She added: “Historically, we now know that the EM/PK(S) has produced some of Karowe's most valuable diamonds, including the 1,109 carat Lesedi La Rona and the 813 carat Constellation. In 2019 we will be evaluating various mining scenarios that have the potential to access this valuable ore as early as possible in the underground mining schedule. Other highlights from our 2018 work program included the successful completion of a deep hydrogeological drilling campaign, which did not encounter significant water and has substantially de-risked the overall underground project. Finally, we are delighted to be welcoming Gord Doerksen and JDS to the feasibility team to direct the study and provide Lucara with a fit for purpose underground mine design that will work to optimize and maximize the economic returns of the underground project.  The feasibility study will be completed by in the second half of 2019."

A budget of US$ 14.8 million has been approved to complete 2019 technical programme and final feasibility study. Lucara said the feasibility study was on track for release in H2 2019.