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Lucapa Diamond Company Limited (ASX: LOM) (“Lucapa” or “the Company”) and its partners are pleased to announce the results of the latest sale of alluvial diamonds from the Lulo Diamond Project in Angola.
The parcel of 1,862 carats of Lulo diamonds sold for gross proceeds of A$2.9 million (US$2.1 million), representing an average sale price of A$1,580 (US$1,150) per carat.
Further large specials (diamonds weighing more than 10.8 carats) recovered from trial mining at the E46 alluvial terraces since this latest sale parcel include individual diamonds weighing 60 carats, 35 carats and 21 carats.
35 carat Type IIa D-colour from E46 and 13 carat fancy yellow from Mining Block 6 – recovered post last sale
Diamond Mining Resumes at Mining Block 6
The end of the Angolan wet season has also enabled Lucapa and its partners to resume alluvial diamond mining operations at Mining Block 6 at Lulo, where initial special recoveries have included a 13 carat fancy yellow – one of the largest fancy-coloured gems recovered to date at Lulo.
Mining operations are also expected to resume at Mining Block 8 during the June 2016 Quarter, where de-watering and mine preparations continue.
Mining Blocks 6 and 8 have been regular sources of large valuable diamonds, producing four +100 carat stones to date including the record 404 carat Type IIa D-colour gem which sold for A$22.5 million in February 2016.
As previously announced, recent capital upgrades at Lulo include the purchase of an XRT module to increase the recovery of large special and Type IIa diamonds.
Specials from E46 and Mining Block 6 recovered post last sale
New Management Appointments
Lucapa and its partners continue to strengthen the Lulo management team as the alluvial mining and kimberlite exploration programs are advanced.
Mr Richard Barnes has been appointed as the Lulo Mine General Manager.
Mr Barnes began his career as a geologist and has worked in the Angolan diamond industry for 15 years. He has an MSc Mineral Exploration from the Royal School of Mines in London and an MBA from Durham Business School.
Lucapa has also appointed Mr Johan van Wyk as Finance Manager.
Mr van Wyk is a member of the South African Institute of Chartered Accountants and has more than 20 years’ experience in finance and risk management. This includes senior financial positions held at Barloworld Limited in Johannesburg and more recently in the diamond industry.
For and on behalf of the Lucapa Board.
Stephen Wetherall, Chief Executive Officer
Forward-Looking Statements
This announcement has been prepared by the Company. This document contains background information about the Company and its related entities current at the date of this announcement. This is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this announcement. This announcement is for information purposes only. Neither this document nor the information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction.
This announcement may not be distributed in any jurisdiction except in accordance with the legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply in their own jurisdiction. A failure to do so may result in a violation of securities laws in such jurisdiction. This document does not constitute investment advice and has been prepared without taking into account the recipient’s investment objectives, financial circumstances or particular needs and the opinions and recommendations in this representation are not intended to represent recommendations of particular investments to particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments.
No responsibility for any errors or omissions from this document arising out of negligence or otherwise is accepted. This document does include forward-looking statements. Forward-looking statements are only predictions and are subject to risks, uncertainties and assumptions which are outside the control of the Company. Actual values, results, outcomes or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements.
Any forward-looking statements in this announcement speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and ASX Listing Rules, the Company does not undertake any obligation to update or revise any information or any of the forward-looking statements in this document or any changes in events, conditions or circumstances on which any such forward-looking statement is based.
