Lulo recovers two diamonds of Type IIa!

 

Lucapa sales over 10K carats year to date 

Lucapa Diamond Company Limited presents its activities report and results for the Quarter ending 30 September 2020, Q3 2020 with Lucapa’s operational highlights for the Quarter include, 1: Record Quarter diamond production at Lulo with 9,387 carats recovered, 2: Bulk sampling completed at L071 and L072 resulting in the recovery of 1.33 carats from L071 including a 0.25 carat Type IIa diamond. 

3: Completion of three diamond sales by SML, realising US$11.6m (A$16.3m), 4: Restructuring of the group’s borrowings successfully completed, 5: Approval of the Mothae kimberlite mine restart plan, 6: New diamond marketing channel approved by the Government of Lesotho, 7: ~280% increase in the Indicated Resource at Mothae. 

SML’s operations at Lulo were partially impacted during the Quarter by the State of Emergency implemented in Angola because of the Covid-19 pandemic and presidential decrees regulating personnel movement. However, the Lulo mine still achieved a record Quarter for diamond production, recovering 9,387 carats for Q3 20, surpassing the previous record of 8,865 carats set in the third quarter of 2016.

Kimberlite exploration at Lulo continued during the Quarter with the bulk sampling of the L071 and L072 kimberlites, resulting in the recovery of two diamonds weighing 1.33 carats, which included a 0.25 carat Type IIa diamond from L071. Access road construction and delineation drilling are well underway to access three other high priority targets for bulk sampling in the Canguige catchment. 

Due to the Covid-19 lockdowns impacting on the movement of personnel and access to critical mine supplies, operations were suspended at the Mothae kimberlite mine in March 2020. Pleasingly, after easing of the lockdowns and approval of the Mothae mine restart plan, mining operations at Mothae recommenced shortly after Quarter end.

No diamond sales were concluded during the Quarter. Total sales at Lucapa registered in the term of year to date totalled 10,268 carats for US$4.1mn (A$6.4m) or US$402 (A$623) per carat. Mothae held a diamond inventory of 784 carats at the end of the Quarter. 

During the Quarter, the GoL, Lucapa and Mothae executed a Heads of Agreement in respect of a new diamond marketing channel. This HoA paves the way for the regular run of mine diamond production from the Mothae mine to be committed and sold at full rough market value into a direct off take partnership with a diamantaire. Through this new channel, Mothae will now regularly accrue additional benefit in the form of shared polished margins beyond the mine gate. 

Earlier in the year, following a special approval received from the GoL during the Covid-19 suspension, Mothae sold a parcel of 3,962 carats into a cutting & polishing partnership. Under this sale Mothae was paid the full rough market value of the diamonds upfront and received its share of polished margins generated at the beginning of Q4 20.