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50

MODERN MINING

January 2015

DIAMONDS

Top projects

a formidable high US$/carat resource. The

mine plan is based on probable reserves of

33,1 Mt containing 5,1 million carats from an

open pit designed to 320 m depth. The indi-

cated resource from surface to a depth of 400 m

amounts to 48 Mt containing 7,6 million carats.

There is also an inferred resource from 400 m to

750 m of 21 Mt containing 3 million carats. The

deposit is open at depth.

The geologists describe AK6 as “a three-lobed

body primarily composed of volcanoclastic

kimberlite with lesser hypabyssal facies kim-

berlite.” The three lobes are referred to as the

North, Centre and South lobes, with the bulk of

the reserve (75 %) being contained in the South

Lobe. All the lobes are currently being mined

and the North Lobe, the initial focus of mining

operations, is over 60 %mined out. At the pres-

ent processing rate of approximately 2,5 Mt/a,

the open-pit mine life is around 13 years – with

the ultimate dimensions of the pit expected to

be 800 m x 700 m by 320 m.

Commenting on the performance of Karowe,

Paul Day – who joined Lucara as COO in

March 2013 and who was previously GM at the

Trekoppje uraniummine in Namibia (and before

that a senior manager with AngloGold Ashanti

in Mali) – says the mine has met Lucara’s

expectations, and more. “It was designed to

be roughly a 400 000 carats a year producer

and we are achieving this easily,” he says. “In

2013 we produced just over 440 000 carats and

our guidance for 2014 is between 400 000 and

420 000 carats at an operating cost of US$31 to

US$33 per tonne treated. But the really exciting

feature of Karowe is the sheer number of large

stones that have been recovered which is way

ahead of what Lucara expected when it com-

missioned the mine. For example, in the first

half of 2014 we recovered 547 diamonds larger

than 10,8 carats, including 67 larger than 50

carats and 25 larger than 100 carats.”

In fact, several stones have been above 200

carats, with the biggest to date being 281 carats.

Diamonds above 100 carats – and, even more

so, 200 carats – are extremely rare and, apart

from Karowe, the only other regular produc-

ers of stones this size in the Southern African

region – and indeed globally – are Letšeng in

Lesotho, owned by Gem Diamonds, and Petra’s

Cullinan mine near Pretoria. The value of

Karowe’s diamonds has also been greater than

originally anticipated, with the average price

achieved in H1 2014 being over US$750/ct

(including all the ‘specials’ above 10,8 ct).

Operationally, Karowe is run on an out-

sourced model, with contractors running the

main functions of open-pit mining operations

and ore processing. The mine is operated by

Lucara’s local subsidiary Boteti Mining headed

by MD Ribson Gabonowe. Day-to-day manage-

ment of the mine is in the hands of GM Gerry

Ndlovu and the total employee complement

he is responsible for (including contractors) is

around 800 people. He takes satisfaction from

the fact that his senior managers are mainly

Batswana with just one expat in the team.

Ndlovu is a metallurgist (he graduated

from Queen’s University in Kingston, Ontario,

Canada) and prior to joining Boteti Mining

in 2010 spent nearly 20 years with BCL in

Selebi-Phikwe.

He was Karowe’s third employee and has

seen the project move through from concept to

commissioning to operation. Like Day, he labels

it a “huge success” but says that a particular

focus at the moment is safety. “In 2012 we were

one of the best performing mines in Botswana

in terms of safety and received an award from

the Botswana Chamber of Mines,” he notes.

Above:

Aerial view of

the Karowe mine, which

is located in the Orapa

Kimberlite Field near the

town of Letlhakane.

Centre:

The pit at Karowe.

All the lobes are currently

being mined and the North

Lobe, the initial focus of

mining operations, is over

60 %mined out. Remaining

pit life is about 13 years

(photo: Arthur Tassell).