Perth, Western Australia, October 9, 2019 - Lucapa Diamond Company Limited (ASX: LOM, FSE: NHY, ISIN AU000000LOM6) („Lucapa“ or „the Company“) and its respective partners are pleased to report strong production performances at both the Lulo and Mothae highvalue diamond mines in the September 2019 Quarter (“the Quarter”).
The Lulo alluvial mine in Angola and the Mothae kimberlite mine in Lesotho achieved combined production of 14,610 carats in the Quarter, a quarterly group record. The results are in line with Lucapa’s strategy of expanding high-value diamond production to maximise revenue generation.
Results for the Quarter included:
Production of 7,603 carats at Lulo, representing a 67% increase over the previous corresponding 2018 quarter and the second-highest quarterly result on record
Production of 7,007 carats at Mothae, the highest quarterly result since commercial production commenced in January 2019 Lulo and Mothae both continued to underline their status as large diamond producers during the Quarter, producing a total of 432 +4.8 carat diamonds including 136 Specials (+10.8 carat diamonds).
1 70% subsidiary; 2 40% associate. * Converted from bulk cubic metres to tonnes
Lulo alluvial mine, Angola (Lucapa 40% and operator)
The Lulo mine in Angola, one of the world’s highest US$ per carat alluvial projects, produced 7,603 carats in the Quarter, up 67% on the previous corresponding period (Q3 2018) and almost double the June 2019 quarterly result. The strong production increase was primarily due to a significant increase in the recovered diamond grade of 10.5 carats per 100 cubic metres (“cphm”) as more material was processed from the new higher grade flood plain Mining Blocks 19 and 31 (Refer ASX announcement 3 September 2019). Lulo produced 297 +4.8 carat diamonds during the Quarter (up 138% on the previous corresponding quarter) including 97 Specials (up 111%).
Mothae kimberlite mine, Lesotho (Lucapa 70%)
Lucapa’s new high-value Mothae kimberlite mine in Lesotho, which commenced commercial production on 1 January 2019, produced 7,007 carats in the Quarter, which was 30% ahead of plan. The recovered diamond grade of 2.3 carats per 100 tonnes (“cpht”) for the Quarter was 16% ahead of
plan, while the record 298,726 tonnes treated during the Quarter was 11% ahead of plan. Mothae produced 135 +4.8 carat diamonds in the Quarter including 39 Specials. Lucapa expects to provide an update shortly on diamond sales from Lulo and Mothae, while further details of production and exploration activities for the Quarter will be provided in the September 2019 Quarterly Report.
Lucapa is a growing diamond company with high-value mines in Angola and Lesotho. Lucapa’s vision is to become a leading global producer of large and premium-quality diamonds from alluvial and kimberlite sources. Lulo and Mothae produce large and high-value diamonds, with >75% of revenues from both mines generated from the recovery of +4.8 carat stones. Lulo has produced 13 +100 carat diamonds to date and is one of the highest average US$ per carat alluvial diamond producers in the world. Lucapa and its Lulo partners continue to advance their search for the primary kimberlite sources of these exceptional alluvial gems through a systematic exploration program. The new 1.1 Mtpa Mothae kimberlite mine in diamond-rich Lesotho commenced commercial diamond mining operations in January 2019 and has already recovered seven +50 carat diamonds under
Lucapa’s ownership. Lucapa’s Board and management team have decades of diamond industry experience across the globe with companies including De Beers and Gem Diamonds.
Competent Person’s Statement
Information included in this announcement that relates to exploration results and resource estimates is based on and fairly represents information and supporting documentation prepared and compiled by Richard Price MAusIMM who is a Member of the Australasian Institute of Mining and
Metallurgy. Mr Price is an employee of Lucapa Diamond Company Limited. Mr Price has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012
Edition of the Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves. Mr Price consents to the inclusion in the announcement of the matters based on this information in the form and context in which it appears.
No New Information
To the extent that announcement contains references to prior exploration results and Mineral Resource estimates, which have been cross referenced to previous market announcements made by the Company, unless explicitly stated, no new information is contained. The Company confirms that
it is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of estimates of Mineral Resources,that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.
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 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.
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Source: Company websites