Africa-Press – Botswana. The Canadian diamond miner – which is known for recovering massive stones at Karowe Mine – says it is currently reviewing its UGP mining ore extraction methodology, project costs and schedule.
Lucara Diamond Corporation spent $13.6 million (about P182 million) on the Karowe Mine Underground Project (UGP) in the second quarter of 2025 as it continued development work and engineering assessments, the company has said in a statement.
It added that Q2 expenditure focused on the skip loading pocket at the 285-level, station development on the 335-level and 310-level, lateral developments, and surface infrastructure.
The UGP is designed to access the highest-value portion of the Karowe orebody, particularly the EM/PK(S) unit (the kimberlite ore unite of the South Lobe at Karowe Mine). The Canadian diamond miner is currently reviewing its UGP mining ore extraction methodology, project costs and schedule.
Project review underway
The review includes geomechanics modelling and caving simulations, which are expected to influence extraction levels and point designs. However, the company has that the review does not impact current development work.
“Progress on the Karowe underground project remains strong,” said Lucara President and CEO William Lamb. “We are delighted to recognise over 2,000 days lost-time injury-free on the UGP in July, as well as the completion of the final sinking blast in the production shaft.”
Lucara confirmed that it has initiated detailed engineering of the lateral development portion of the UGP and is finalising a revised life-of-mine plan based on simulation results.
Lateral development
Development work in Q2 included equipping the production shaft, commissioning shaft conveyances, and advancing underground infrastructure near the shafts.The company noted that further lateral development towards the kimberlite is scheduled for the second half of 2025.
Meanwhile, Lucara posted Q2 2025 revenue of $43.7 million, up from $41.3 million in the same quarter last year. The increase was attributed in part to the sale of the 1,094-carat “Seriti” diamond to HB Antwerp for an initial polished value of $12 million. The final sale value will be determined once polished stones are sold to end buyers.
2,036-carat diamond recovered
In July, Lucara recovered a 2,036-carat near-gem diamond from processing EM/PK(S) kimberlite. It is the third-largest rough diamond ever found and the second-largest recovered in Botswana.
The EM/PK(S) material targeted by the UGP has now produced seven of the world’s largest recorded natural diamonds.
The company also reported the recovery of 242 “Specials” — rough diamonds larger than 10.8 carats — in Q2, up from 206 in Q2 2024. These accounted for 9.4 percent of the total carats recovered from direct ore feed, compared to 6.9 percent in the same quarter last year.
Production and funding
A total of 85,024 carats were recovered in Q2 2025. Of these, 82,555 carats came from pit and stockpile ore, yielding a recovered grade of 12.5 carats per hundred tonnes. An additional 2,469 carats were recovered from reprocessing historical recovery tailings.
Lucara also confirmed the successful funding of its Cost Overrun Reserve Account (CORA) to the required balance of $61.7 million. The company said lenders have approved a $28 million withdrawal from CORA after its largest shareholder, Nemesia S.à.r.l., agreed to extend its $28 million standby undertaking until project completion.
Transition to underground mining
As the company prepares to transition from open-pit to underground operations, Lucara said it will rely more heavily on lower-value stockpiled material until UGP production begins.
“We remain focused on disciplined execution and strategic resource management,” Lamb said. “We recognise that realising the full potential of our underground resource will involve navigating both the operational and financial complexities ahead.”
For More News And Analysis About Botswana Follow Africa-Press
