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Lucapa Diamond Company recovers large premium diamond from new mining area

Lucapa has recovered a large 62 carat premium-value diamond in Angola.

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62 carat Type IIa Lulo diamond from new Mining Block 25

Lucapa Diamond Company (ASX:LOM) has recovered a large 62 carat premium-value diamond from another new alluvial mining area at the Lulo Diamond Project in Angola.

This is the second large diamond to be recovered from a new mining area at Lulo after a 227 carat diamond and the project’s second largest diamond was recovered earlier this month.

This provides further evidence of the potential for the entire 50 kilometre stretch of the Cacuilo River within the Lulo concession to host large and high-value diamonds.

Both diamonds recovered will be sold in the upcoming sales with the 227 carat diamond scheduled to be sold in March 2017.

Testing has confirmed that the 62 carat diamond is a premium-quality Type IIa gem.


Background

Lucapa’s flagship asset and principal investment is the Lulo Diamond Project, which is a partnership over a 3,000 square kilometre concession in the African country of Angola.

The Lulo project is a joint venture between Lucapa, Endiama (Angolan government) and Rosas & Petalas – a private partner.

Lucapa holds 40% of the alluvial diamond mining operations and is the operator where it recovers large premium-value diamonds of up to 404 carats.

These special diamonds account for 30% of the diamond weight but more than 90% of overall diamond revenues.


Recent diamond sales

Earlier this month, Lucapa and its partners completed the first sale of Lulo diamonds for 2017, which delivered gross proceeds of US$3.8 million (A$4.9 million).

The sale comprised diamond recoveries up until the end of 2016.

In total the parcel comprised of 2946 carats, including a 75 carat diamond recovered in November, and a 55 carat diamond recovered in December.


Mothae acquisition

Lucapa recently diversified and de-risked its diamond production with the acquisition of 70% of the Mothae Kimberlite Project, located in the Kingdom of Lesotho, Southern Africa.

Mothae is a complementary fit with the company's Lulo mine in Angola which has a similarly high-value diamond production.


Broker support

Following the acquisition, Hartleys updated its price target of Lucapa to $0.77 per share.

Lucapa last traded at $0.405.

Quick facts: Lucapa Diamond Company

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