Proactive Investors - Run By Investors For Investors

Lucapa surges on Western Australian diamond results

The shares were up by 38% to $0.29 in early trading.
WA map
The West Kimberley region in which the Brooking project is located is a source of yellow diamonds

Lucapa Diamond Co Ltd (ASX:LOM) surged after revealing the discovery of diamond-bearing material at the Brooking project in Western Australia.

Drilling by Lucapa and its partner Leopold Diamond Company at the Little Spring Creek prospect has intersected near-surface lamproite materials.

There were 119 diamonds, including seven macro-diamonds up to 1 millimetre, recovered from micro-diamond analysis of an 86.6 kilogram core sample.

The news sparked a surge in Lucapa with shares up 38% to $0.29 in early trade today.

Close to Ellendale diamond field

Brooking is in the West Kimberley lamproite province, within 50 kilometres of the Ellendale diamond field.

When in production, Ellendale produced more than 50% of the world’s annual supply of fancy yellow diamonds.

Discovery validates sampling

Discovery of the diamond-bearing lamproite validates results from Lucapa’s previous surface sampling programs at Little Spring Creek.

These programs resulted in the recovery of 24 diamonds and highly-anomalous concentrations of lamproite indicator minerals.

Stephen Wetherall, managing director, said: “The main goal of our drilling program was to identify lamproitic material, which could be the primary source of the diamonds and indicator minerals recovered from sampling.

“The high concentrations of micro-diamonds and macro-diamonds recovered from the drill core sample is extremely encouraging.

“The counts are very similar to the MIDA results from the Ellendale E9 and E4 diamond pipes, 50 kilometres west.”

“We now look forward to follow-up work programs at Little Spring Creek to identify the extent of the diamondiferous lamproite body and to further assess its diamond content when conditions permit.”

Follow-up planned

Follow-up drilling and bulk sampling programs are planned as soon as access to the site is available after the northern wet season.

Lucapa secured an 80% interest in the Brooking project in 2016 as part of its strategy to assess projects in known diamond provinces considered prospective for significant discoveries.

The company has a portfolio of production, development and exploration assets in Angola, Lesotho, Botswana and Australia.

READ: Lucapa Diamond Company recovers more large diamonds in Angola

Its flagship asset is the Lulo Diamond Project in Angola, a prolific producer of large and premium-value alluvial diamonds.

View full LOM profile View Profile

Lucapa Diamond Company Timeline

Related Articles

Picture of pilot plant
April 05 2018
An impressive pre-feasibility study features a pre-tax valuation of $227 million for start-up capital expenditure of $65 million.
savannah
December 14 2018
Savannah Resources sees potential to increase the current mineral resource estimate of the Mina do Barroso project
The central processing plant for Lance uranium projects
November 16 2018
The company hopes to reduce its production costs with a shift in chemistry.

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use