Lucapa crows on kimberlite find at Lulo
Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.
In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.
The below articles were written under our previous business model. We have kept these articles online here for your reference.
Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.
Click Here to View Latest Articles
Lucapa Diamond Company (ASX:LOM) now thinks it could have more diamonds on its hands after confirming the presence of kimberlite next to its main diamond project in Angola.
It told the market in a pre-open announcement that pitting on a possible kimberlite target (L259) next door to its Mining Block 8 prospect had been firmed up by a trenching program.
Kimberlite is an igneous rock which is known for containing diamonds, and the fact that it’s right next door to its existing diamond block filled LOM with confidence.
“This makes L259 a compelling target as we close in on our major goal at Lulo, which is to find the primary kimberlite source or sources of the exceptional alluvial diamonds we are recovering on a daily basis,” LOM chief executive Stephen Wetherall said.
“The area we have recovered kimberlite from in our ongoing pitting program also suggests this to be a significantly sized kimberlite.”
Kimberlite found in an area adjacent to Mining Block 8
It said that it had managed to find the same kind of kimberlite in pits more than 1km apart, suggesting a wide area of discovery.
The kimberlite is located about 500m north east of the area where mining first commenced at LOM’s flagship Block 8 alluvial diamond field.
So far, LOM has recovered 31 ‘specials’ from the block following the start of mining on August 10 this year.
It said it would now step up pitting and exploration on the kimberlite target, and has been trying to source a rig to conduct early stage delineation drilling.
LOM will also conduct pitting on the outer rim of the kimberlite area to figure when and where bulk samples can be excavated.
By bulk sampling, LOM will be able to get an idea of the diamond content of the kimberlite.
Meanwhile, it also announced an extension of Mining Block 8 due to ongoing pitting in the area.
LOM said the pitting had in effect extended the boundary of the Block 8 ‘paleopacer’ by 800m north and 800 west.
On a tear
Since September 24, LOM shares have been on a rocket, rising by 261% to yesterday’s closing price of 47c.
On September 28, LOM said that it had found so-called ‘large special diamonds’ during a pitting program at the prolific Block 8 at the project – including a 90.32 carat gem.
Finds of 56.62 carats, 36.61 carats, 29.94 carats, 18.71 carats, and two 11 carat diamonds were also recorded.
The finds were on the same block where a 131.40 carat diamond was found during preliminary bulk sampling back in 2012.
About Lucapa Diamond Company (ASX:LOM)
LOM is the operator of the 3,000km2 Lulo Diamond Concession in Angola’s Lunda Norte diamond heartland.
Lulo is located within 150km of Catoca, the world’s fourth biggest kimberlite diamond mine, and on the same favourable geological trend (Lucapa Graben).
Lucapa and its partners commenced alluvial diamond mining operations at Lulo in January 2015. The Lulo alluvial diamonds sold to date have achieved average sale prices of $1668 per carat.
Lulo also hosts 296 kimberlite targets in two separate provinces, of which 96 have already been classified as proven and probable kimberlites and four confirmed as diamond-bearing pipes.
General Information Only
S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.
Conflicts of Interest Notice
S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.
Publication Notice and Disclaimer
The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.
Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.
This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.
