Name of the Project
Mothae kimberlite diamond mine.

Location
The project is located in the heart of the highest-value cluster of kimberlite mines in Lesotho, and within 5 km of Letšeng – the world’s highest dollar-per-carat kimberlite mine.

Client
Lucapa Diamonds.

Project Description
The new mine development plan has resulted in improvements to the original targeted Mothae development plan, as set out in announcements released in January and May 2017.

The improvements in targeted kimberlite to be mined, carat production, net cash flows and mine life are derived primarily from increasing the size of the Phase 1 diamond plant from 100 t/h to 150 t/h, or 1.08-million tonnes a year, and pit optimisation reviews.

The larger 150 t/h plant can also be used more efficiently in the proposed Phase 2 Mothae development plan, under which a second 150 t/h module will be installed in parallel to the Phase 1 plant to achieve the targeted 300 t/h, or 2.16-million-tonne-a-year, Phase 2 throughput.

In addition to the larger plant, the pit design resulting from the new mine plan has been optimised and is set to extract kimberlite to about 300 m, compared with a total depth of 255 m in the original pit design and mining plan.

Conventional openpit mining methods will be used. Weathered kimberlite will be mined using free-dig load-and-haul methods; and unweathered kimberlite and waste will be mined using drill, blast and load-and-haul methods.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The prefinancing net present value, at a 10% discount rate, has increased from $65.1-million in the initial mine plan to $85.4-million in the new development plan.

The prefinancing internal rate of return has increased from 36% in the initial mine plan to 41% in the new development plan.

Value
The capital investment for Phase 1 has increased from $11.9-million to $17-million, while Phase 2 has decreased from $78.5-million in the initial mine plan to $60.5-million in the new development plan.

Duration
Commercial recoveries through the treatment plant started at the end of 2018.

Latest Developments
Lucapa has secured R100-million in development funding from South Africa’s Industrial Development Corporation (IDC) for the Mothae kimberlite mine.

The funding follows the execution of the loan and ancillary agreements and completion of all conditions precedent to the term sheet announced in October.

In addition to the funding from the IDC, Lucapa has also received R20.6-million in proceeds from the sale of diamonds recovered in various campaigns. The company has received up to $15 000/t for individual diamonds.

Lucapa started commercial diamond recoveries through the 1.1-million-tonne-a-year treatment plant in early December. The plant is being ramped up to its nameplate capacity and the first sale of commercial diamonds from the mine is scheduled for the first quarter.

Key Contracts and Suppliers
None stated.

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Lucapa Diamonds, tel +61 8 9381 5995, fax +61 8 9489 9201 or email general@lucapa.com.au.