- Lucapa Diamond Company (LOM) has increased the diamond resource estimate at its Lulo diamond mine in Angola by 35 per cent
- Grade has reduced to 6.86 carats per 100 cubic metres, however, in-situ resource carats has increased from 100,700 to 135,900 carats
- The price of diamonds was effected by the COVID-19 pandemic, but Lucapa says to date, Lulo has made approximately $258 million at approximately $2313 per carat
- The company says demand and prices have recovered and are back to pre-COVID levels
- The total diluted volume of gravel available for mining has increased to two cubic millimetres which could provide five years of output at current rates
- Managing Director Stephen Wetherall said the 35 per cent increase is a new record for Lucapa
- Shares are in the grey at 6.6 cents each
Lucapa Diamond Company (LOM) has increased the diamond resource estimate at its Lulo diamond mine in Angola by 35 per cent.
Despite a reduction in grade to 6.86 carats per 100 cubic metres, which Lucapa says is a result of adjusting the mining dilution factor, the in-situ resource carats has increased from 100,700 to 135,900 carats.
The JORC resource update encompassed mining depletion to the end of last year by partner Sociedade Mineira Do Lulo (SML), during which time around 23,600 carats of diamonds were recovered from around 271,700 bulk cubic metres of gravel.
It also assessed the delineating of new or additional resources, as well as improved knowledge of existing resource areas through an extensive hole auger drilling and 770-hole pitting program.
Consequently, the total diluted volume of gravel available for mining in the updated resource has increased to almost two cubic metres, which the company says will provide five years of output at current rates.
Managing Director Stephen Wetherall said the 35 per cent increase is a new record for Lucapa and is a “direct result of disciplined investment in the alluvial exploration and delineation programs by SML.”
The effect of COVID-19 on diamond prices last year meant the modelled value reduced to US$1440 (about A$1860) per carat.
However, Lucapa says to date, 112,000 carats of diamonds have been recovered and sold at Lulo for a total of US$200 million (approximately A$258,409,038) at an average price of US$1790 (about A$2313) per carat.
Encouragingly, the company says demand and prices have since recovered to pre-pandemic levels.
Shares are in the grey at 6.6 cents each at 9:25 am AEDT.