Lucapa Diamond Company Limited (ASX: LOM) and its partners Empresa Nacional de Diamantes E.P. and Rosas & Petalas have announced the launch of the next exploration phase at the Lulo project in Angola.
The company reported that the program, expected to cost ~US$3.3 million, is aimed at locating the kimberlite source of the high-value alluvial diamonds at Lulo.
Some of the key features of the next phase include bulk stream sampling, follow-up delineation drilling, and drilling of eight additional kimberlite targets.
Lucapa announced that the next kimberlite phase has been reviewed by the Lulo partners.
Lulo diamond project
The Lulo Diamond Project is a 3,000km2 concession in Angola’s Lunda Norte diamond heartland, approximately 630km east of the Angolan capital of Luanda.
Lucapa operates the Lulo concession in a partnership with Empresa Nacional de Diamantes E.P. (Endiama), Angola’s national diamond company, and private partner Rosas & Petalas.
Lulo is the world’s highest-value alluvial diamond field, producing diamond sales of US$146 million to date at an average price per carat of >US$2,000. Lulo has produced 13 +100 carat alluvial diamonds, including Angola’s two biggest recorded diamonds weighing 404 carats and 227 carats.
The Lulo partners have been conducting alluvial and kimberlite exploration activities continuously at Lulo since 2008.
US$3.3 million program launched
The Lulo partners have launched a new program to locate the kimberlite source of the high-value alluvial diamonds at the Lulo project in Angola.
The company said that the new kimberlite exploration program will be completed over the next 12 months at a budgeted cost of US$3.3 million.
Lucapa reported that it will fund the exploration costs from a portion of its returns from Lulo alluvial mining company Sociedade Mineira Do Lulo. Exploration thereafter will be results-driven.
The next kimberlite phase
Lucapa reported that the next kimberlite phase builds on all the previous drilling, sampling and exploration work completed by Lulo partners to narrow down the hard-rock diamond source or sources of the exceptional Lulo alluvial diamonds.
The company said that the program is based on an extensive technical review of Lulo kimberlite exploration results to date, including those of the extensive 2018 drilling program.
Some of the key features of the next phase include bulk stream sampling, follow-up delineation drilling, and drilling of eight additional kimberlite targets.
Bulk stream sampling
LOM announced that one of the key features of the next phase is an extensive stream bulk sampling program focusing on six major tributaries feeding from high-interest areas into the Cacuilo River upstream of Mining Blocks 8 and 6.
It may be noted that some of the largest and most valuable alluvial diamonds have been recovered at Lulo from this place.
The company said that 5,000m3 bulk samples of alluvial gravels are planned to be excavated from each of these six tributaries. The company said that these bulk samples will then be processed to identify the catchment areas with significant diamond concentrations.
Follow-up delineation drilling
The company said that there would be follow-up delineation drilling of 16 Lulo kimberlite pipes rated most prospective to host diamonds.
The ~8,800 metre delineation drilling program is expected to define the internal lithologies and structures of each of the 16 pipes including surface volcaniclastic kimberlite material for later bulk sampling.
Drilling 8 new targets
LOM said that another key feature of the phase would be the drilling eight additional kimberlite targets, including anomalies highlighted in the technical review demonstrating reversely polarised magnetic signatures.
Latest updates
Lucapa said that the new exploration phase has been reviewed by the Lulo partners. The company said that the delineation drilling will commence at the L14 kimberlite pipe upstream of Mining Block 8.
Management comments
Lucapa Managing Director Stephen Wetherall stated: “The next phase of the kimberlite program builds on the great body of exploration work completed over many years at Lulo to pin-point the source pipes hosting the world’s best alluvial diamonds.
Like the diamond experts involved in our recent technical review, we remain convinced that the kimberlite source of these diamonds awaits discovery beneath our prolific alluvial diamond field.”
