Lucara aims to process 2.5 million tonnes of diamond ore
Keikantse Lesemela | Wednesday December 10, 2014 14:42
The company expects to spend about eight million US dollars on exploration work to be conducted on its two prospecting licences awarded in 2014.
Operating cash costs are expected to be between 33 and 36 dollars per tonne treated as compared to 2014 forecast of $31-$33 per tonne. In a statement released yesterday, Lucara President and Chief Executive, William Lamb said the forecast increase in operating cash costs is due to higher forecast operating costs resulting from the change to the process plant facilities to improve large diamond recovery; processing of harder material from the south lobe; a forecast increase in tonnes of waste mined in 2015 and an increase in forecast power costs in Botswana.
He said in anticipation of the plant optimisation being complete in the second quarter, the mine plans transitions to the south lobe during this quarter with the higher value south lobe being the primary area being mined to the end of 2015.
“It will be an exciting second half of 2015 based on the south lobe diamonds which have historically achieved stronger diamond valuations at our tenders and have maintained a high population of special,” reads the statement.
Lamb said the company is forecasting to build on its strong cash balance to position itself for growth opportunities at Karowe.
“Lucara had a successful year in 2014 generating strong cash flows through the achievement of its production targets at lower than forecast operating costs and from significant revenues generated from the sale of its large and exceptional diamonds during the year,” he said.
The mine is forecast to mine 2.5-2.8 million tonnes of ore and increase waste mined during 2015, in line with the original feasibility mine plan, as it continues to open up the full extent of the south lobe. As a result the Karowe mine plan requires more that 12 million tonnes of waste to be stripped and stockpiled or used to expand the tailings facility in 2015
The Karowe mine is forecast to treat between 2.3-2.5 million tonnes of ore, producing over 400,000 carats of diamond.
It is expected that the mine will process material largely from stockpile during the first quarter of 2015 as the plant modifications to treat the harder, higher yield south lobe ore are planned for commissioning and completion during the second quarter of 2015.
Lucara was awarded two precious stone prospecting licences within the Orapa Kimberlite field in close proximity to the Karowe Diamond mine during 2014. The company started conducting ground geophysical surveys and the extraction of up to 5, 000 tonne mini-bulk samples from each of the prospective kimberlites in the 4th quarter of 2014. The process will continue 2015.
The Company has ordered a bulk sampling plant, which will cost between $4.0-$5.0 million fully installed and will be located at the Karowe Mine. The plant commissioning is planned for Q2 2015. It is forecast that up to $3.0 million would be spent on exploration of these kimberlites in 2015.