Mothae Development Plan
Lucapa and the Government of the Kingdom of Lesotho are on track to commence commercial production at Mothae in H2 2018 under the first stage of a phased development plan.
For Lucapa, the high-value kimberlite production from Mothae will complement that from the Lulo alluvial mining operations in Angola.
In October 2017, Lucapa announced an updated mine development plan for Mothae designed to maximise targeted kimberlite extraction, bring forward diamond production and thus increase project value and cash flows.
These improvements were derived primarily from an optimised pit design (to an increased depth of 300m) and increasing the size of the Phase 1 diamond plant by 50% to 150 tonnes per hour.
The improvements from this plan include:
- A 29% increase in gross project revenues to US$776m
- A 26% increase in net operating cash flows to US$312m
- A 22% increase in diamond production to 498k carats
- A 30% increase in kimberlite material mined to 25m tonnes
- A 12% increase in mine life to 13.5 years
- A 31% increase in modelled pre financing project NPV to US$85m (range of US$55-151m)
During Phase 1, scoping and other studies will be undertaken for the Phase 2 development, which is planned to follow thereafter.
The larger 150 tph plant can be utilised in the proposed Phase 2 Mothae development plan, under which a second 150 tph module can be installed to achieve the targeted 300 tph throughput.
In October 2017, Lucapa announced a US$15m financing package for Phase 1 with Equigold Pte Ltd, a private company associated with prominent resources investor Simon Lee AO, enabling Lucapa to advance multiple development work streams at Mothae.