Letšeng lesotho covid-19

Lucapa Diamond Company has provide an update on the expansion plan and financing of the 70% owned Mothae kimberlite diamond project in Lesotho.

Lucapa’s partner in the Mothae mine is the Government of the Kingdom of Lesotho.

Related:
Lucapa revises Mothae’s mineral resource value

Lucapa Managing Director Stephen Wetherall says:

“With the completion of this Mothae expansion, Lucapa will have successfully delivered on its group production growth target of 200%.

“Lucapa looks forward to the returns expected to be generated from both expanded mining operations and growing shareholder value through cash flow generation and the kimberlite exploration program.”

The expansion plan is an update to the development plan as previously announced in 2017.

Read more about diamonds and gemstones

The investigations have shown that for a much reduced capital requirement of US$6 million, the capacity of the Mothae processing plant can be increased by ~45% to 1.6 Mtpa (215 tph).

With the addition of another parallel secondary crusher in due course, the capacity of the processing plant can be further increased to 1.8 Mtpa (250 tph).

The previous plan included an expansion to 300 tph, which is currently not being considered.

The plant design and capital costings have been provided by Consulmet in South Africa, who also designed and built the existing 1.1 Mt pa Mothae plant.

Highlights

  • Processing plant and mine capacity expansion to 1.6 Mtpa
  • 45% increase in annual tonnes, carats recovered and revenue
  • Earnings enhanced through economies of scale reducing unit operating costs
  • A$10 million funding to deliver expansion successfully raised