Lucapa Commences Alluvial Diamond Mining at Lulo’s Block 29
January 25, 15
(IDEX Online News) – Angolan mining company Lucapa Diamond Company Limited and its mining partners, the state-run Endiama and private Angolan company Rosas & Petalas, have successfully commenced alluvial diamond mining at the Lulo Diamond Concession in Angola’s Lunda Norte diamond province.
Previously recovered diamonds from the Lulo Concession
Lucapa says that it has completed the preliminary processing of mining at the concession’s block 29 area, which produced a diamond in-situ grade of 17.33 carats per 100 cubic meters. A total of 286 diamonds weighing a total of 266.7 carats were recovered from block 29 over the first eight days of alluvial diamond mining for an average stone size of 0.93 carats.
While the diamond miner had to move its mining operations from block 29 after eight days of mining due to very wet ground conditions, it expects to return to this area at a later stage.
Mining block 29 is the first alluvial diamond area to be mined at Lulo since Lucapa and its partners were granted a 35-year alluvial mining license in November 2014. The daily mining and throughput rates are in line with the company’s preliminary internal targets set for the month of January in its mining ramp-up schedule. According to Lucapa Chief Executive Stephen Wetherall, current mining and processing rates at Lulo increase to targeted levels after the wet season and following upgrades made to plant efficiency.
In related news, Lucapa signed a term sheet on January 21 with a well-established mining investment company for a US$15 million bridge financing facility to fund efficiency and operational improvements and to ramp up throughput to a monthly target of 14,000 bulk cubic meters (bcm).The company had announced in December 2014 that it was evaluating debt-financing options to fund efficiency and operational improvements to its 150-tonne-per-hour diamond treatment plant to help reach its monthly processing target of 14,000 bcm by H1 2015.
The funding facility remains subject to an exclusive 40-day due diligence period, legal documentation and various other approvals. Lucapa says that it will continue processing gravels from both alluvial mining and exploration bulk sampling.
The Lulo concession is located 150 kilometers from the Catoca mine, Angola’s largest diamond mine and the fourth largest kimberlite mine in the world.