Lucara Diamond Corp Advances Karowe Underground Feasibility Study
Lucara Diamond Corp. (TSX: LUC) announced on 5 January 2026 the completion of an updated technical report for the Karowe Underground Project (UGP) in Botswana. The report, prepared in accordance with National Instrument 43‑101 – Standards of Disclosure for Mineral Projects, is titled Karowe Mine – Botswana 2025 Feasibility Study Technical Report and was issued on 30 September 2025. The company confirmed that the report was produced by JDS E.
The updated study provides a comprehensive economic assessment of the Karowe UGP. Key highlights include:
| Item | Value |
|---|---|
| Underground ore tonnes mined (millions) | 28.5 |
| Processed tonnes (millions) | 37.3 |
| Diamond reserve grade (carats per 100 tonne) | 12.2 |
| Recovered carats (millions) | 4.5 |
| Diamond revenue (million $) | 3,365 |
| Mine life | ~10 years |
| Life‑of‑mine operating cost (million $) | 427.3 |
| Average unit cost per tonne processed (USD / t) | 15.0 |
The feasibility study also outlines the split between open‑pit and underground mining, with underground operations accounting for approximately 42.7 % of the total life‑of‑mine cost and 28.5 % of the ore processed.
Market Context
Lucara’s share price as of 1 January 2026 closed at CAD 0.21, within a 52‑week range of CAD 0.16 to CAD 0.46. The company’s market capitalization is approximately CAD 93.4 million, and its price‑earnings ratio stands at 1.17.
Recent trading data from Avanza on 5 January 2026 shows the stock moving 5.1 % higher, closing at CAD 0.21 after a session high of CAD 0.22. This uptick follows the announcement of the feasibility study and reflects investor confidence in the project’s economic viability.
Strategic Significance
Lucara operates primarily in Botswana and Lesotho, Africa, where it has positioned the Karowe mine as a flagship project. The updated feasibility study reinforces the mine’s potential as a long‑term, high‑grade diamond producer. The company’s focus on underground development is expected to extend the life of the mine beyond the current open‑pit operations and to improve recovery rates.
The release of the updated study also signals Lucara’s readiness to pursue further financing or partnership opportunities. By providing a detailed NI 43‑101 compliant technical assessment, the company enhances transparency for shareholders and potential investors.
Outlook
While the company has not yet disclosed specific plans for capital raising or project execution timelines, the feasibility study sets a solid foundation for future decision‑making. Lucara’s management will likely explore options to secure funding, possibly through a rights issue, strategic partnership, or debt financing, to transition from study to production.
For investors, the positive price movement and the robust economic data suggest that Lucara Diamond Corp. remains a compelling play within the diamond mining sector, particularly for those focused on emerging African assets with strong production potential.
