- Lucara says underground project financing and rare stone recoveries strengthened its position in the first quarter of 2026
GAZETTE REPORTER
Lucara Diamond Corp said the first quarter of 2026 marked a key phase in the execution of its financing strategy for the Karowe Underground Project (UGP), a development expected to extend the life of the Karowe Mine to 2038.
William Lamb, the company’s President and Chief Executive Officer, said the financing measures had strengthened the company’s balance sheet and improved its financial flexibility as it advances the project.
“The successful execution of its financing strategy for the Karowe Underground Project has strengthened its balance sheet, providing the financial flexibility to advance one of the world’s most exceptional diamond assets,” Lamb said.
The company said the underground project is designed to access the highest-value section of the Karowe orebody, with initial underground production expected to come mainly from the EM/PK(S)2 unit.
Project Costs
According to the company’s updated feasibility study announced on January 30, 2026, the total cost at completion for the underground project stands at $779.2 million, including contingency.
Lucara said that by March 31, 2026, it had incurred $472.4 million in costs, while a further $117.7 million had been committed but not yet spent.
The study includes updated exchange rates, construction progress, revised hydrogeological and geomechanical models, adjustments to mine design and scheduling, and the inclusion of Legacy3 stone values.
From the first half of 2026 to the first half of 2028, the company said processing activities would continue using a combination of open-pit ore and run-of-mine stockpiled material previously mined but not yet processed.
Lucara added that the project had been “materially de-risked” after the completion of shaft sinking activities in 2025, including a 776-metre production shaft and a 729-metre ventilation shaft.
Diamond Recoveries
The company reported total UGP capital expenditures of $19.0 million during the first quarter, mainly linked to shaft equipping, lateral development and surface infrastructure.
Lucara also recovered 100 “specials” during the quarter, including five diamonds larger than 100 carats and one exceeding 300 carats.
Among the notable recoveries was a 36.92-carat blue Type IIB diamond recovered from run-of-mine stockpile material.
Lamb said the recovery highlighted Karowe’s ability to continue producing high-value stones.
“Operationally, Karowe continues to demonstrate its resilience and unique value proposition,” he said.
The company said processing throughput during the quarter remained aligned with operational expectations.
Lamb added that while global diamond market conditions remained mixed, Lucara’s focus on large, high-value stones positioned the company to benefit from improving conditions in that segment.