Lulo diamonds sell for A$11.4 million
Lucapa Diamond Company Limited (ASX: LOM) (“Lucapa” or “the Company”) and its partners, Empresa Nacional de Diamantes E.P. (“Endiama”) and Rosas & Petalas, have completed the first sale for 2018 of alluvial diamonds from the Lulo Diamond Project in Angola.
The sale of 4,170 carats of Lulo diamonds achieved gross proceeds of US$9.14 million (A$11.43 million), representing an exceptional average price per carat of US$2,192.
The latest sale takes total sales of Lulo diamonds, from exploration and mining, to US$106.81 million at US$2,118 per carat.
With the latest sale completed, the next cash distribution to the Lulo partners and loan repayment to Lucapa will be considered as soon as the 2017 accounts of Lulo alluvial mining Sociedade Mineira Do Lulo are finalised (See ASX announcement 19 December 2017).
For and on behalf of the Lucapa Board.
Lucapa is a growing diamond company with a portfolio of high-quality production, development and exploration assets in Angola, Lesotho, Australia and Botswana. The Company’s focus on high-value diamond production is designed to protect cash flows in a sector of the diamond market where demand remains robust.
Lucapa’s flagship asset is the Lulo Diamond Project in Angola, which is a prolific producer of large and premium-value alluvial diamonds. Lulo has produced 10 +100ct diamonds to date and is the highest US$ per carat alluvial diamond production in the world. Lucapa and its Lulo partners continue to advance their search for the primary kimberlite source of these exceptional alluvial gems, with three drill rigs now available in the ongoing kimberlite exploration program.
In keeping with the Company’s growth strategy, Lucapa has acquired a 70% interest in the advanced Mothae kimberlite project in diamond-rich Lesotho. The Mothae kimberlite pipe is a high-quality diamond resource located within 5km of Letšeng, the highest US$ per carat kimberlite diamond mine in the world. Lucapa is constructing a 150 tonne per hour (90,000 tonnes per month) diamond treatment plant, complete with XRT recovery technology, under its Phase 1 development program and is scheduled to commence highvalue production at Mothae in H2 2018. Bulk sampling will commence at Mothae in the March 2018 Quarter.
Lucapa is also advancing exploration programs at two other diamond projects – Brooking in the West Kimberley lamproite province in Western Australia, where the Company has recently discovered lamproite with high concentrations of micro and macro diamonds, and Orapa Area F in Botswana’s Orapa diamond field, where identified targets will be drilled in 2018.
Lucapa’s Board and management team have extensive diamond industry experience across the globe with companies including De Beers, Rio Tinto and Gem Diamonds. The Company was included in the ASX All Ordinaries Index in March 2017.
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