Lonrho (AIM: LONR), the conglomerate with a diverse portfolio of African investments, is pleased to provide an update on Nare Diamonds Limited ("Nare"), the Australian listed African diamond mining company in which it holds a 21.94% stake. Nare is to commence development of its recently acquired highly prospective 3,000 km² diamond concession in Angola ("the Lulo Diamond Concession").
Highlights
- Moblization of mining equipment to mine site and sets up base camp at Lulo
- Approval of the proposed work program which, subject to successful exploration, provides for commencement of trial mining and diamond production at the Lulo Diamond Concession within 12 months
- Acquisition of data in the region surrounding the Lulo Diamond Concession
Development Program
The work program which has recently been approved by Endiama (the State owned diamond mining company of Angola) has been designed to allow for bulk sampling, followed by trial mining and diamond production at the Lulo Diamond Concession by the end of 2008.
Nare intends to set up a base camp at the Lulo Diamond Concession this month. The immediate focus is to conduct an aero magnetic survey over 1,000 km² to identify and outline the alluvial terraces and the kimberlite pipes. The location includes 29 identified kimberlite pipes on the concession. On completion of the survey, Nare will select the biggest pipes for evaluation including immediate drilling and bulk sampling.
Nare intends to commence trial mining the alluvial gravels immediately upon commissioning of the plant, which will commence this year.
'First class' location
Nare is securing historical data in relation to this and the adjacent projects prior to commencing development. As announced on 29 August 2007, Lulo is adjacent to the Petra Diamonds / BHP Billiton owned Alto Cuilo and Luangue concessions. These concessions are the subject of bulk sampling on the kimberlite pipes and alluvial gravels. Aero magnetic surveys on their concession identified in excess of 70 kimberlite pipes, many of which are very large (~175 hectares). Diamonds recovered from this concession have realized in excess of US$230 per carat.
The Lulo Project is located on the eastern margin of the Cuango River catchment within the Lunda Norte Province of northeastern Angola. The Cuango River alluvial diamond fields are the largest in Angola. The operators of these concessions are amongst the leading diamond miners in the world, including De Beers, Trans Hex and Alrosa (see Figure 1). The Cacuilo and Lulo Rivers form part of the Cuango catchment and the location of the known alluvial gravels is adjacent to the known kimberlite pipe cluster on the Lulo Diamond Concession (see Figure 1). Initial geological assessment suggests that some of these kimberlites are the primary sources of the diamonds in the alluvial gravels on the concession.
As noted above, Nare has a work program which is designed to bring forward production of diamonds from its concession as soon as possible.
A map of the Lulo Diamond Concession can be accessed below.
David Lenigas, Chairman and Chief Executive Officer of Lonrho Plc and Chairman of Nare, commented:
"The Lulo Project is in the heart of the largest diamond mining region in Angola and is surrounded by concessions held by some of the world's leading diamond mining companies. Developing this potential utilising the highly experienced Nare management team combined with Lonrho's reputation in Africa, we look forward to taking the mine into production in 2008."
ENQUIRIES
- Lonrho Plc +44 (0) 20 7016 5105
- David Lenigas, Chief Executive +44 (0)7881 825 378
- Emma Priestley, Executive Director +44 (0)7867 785 177
- Nare Diamonds Limited Charles Mostert +61 407196129, +27 722869288
- Pelham PR Charles Vivian +44 (0) 20 7743 6672, +44 (0) 7977 297903
- Alisdair Haythornthwaite +44 (0) 20 7743 6676, +44 (0) 7714 721379
- Collins Stewart Europe Hugh Field +44 (0) 20 7523 8350
- Jonny Sloan
NOTES TO EDITORS
About LULO:
Nare has signed a joint venture agreement with Endiama, the national diamond company of Angola and exclusive concessionary for Angolan diamond mining rights, to develop a highly prospective 3,000 km² diamond concession in Angola (the Lulo Diamond Concession). On all kimberlite deposits Nare's participating interest will initially be 39% of the joint venture which will decrease to 30% after recoupment of its investment in the Project. On all alluvial deposits Nare's participating interest will be 40% in the joint venture.
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company is listed on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services and natural resources. The Company has over 20,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
- Hotel Cardoso - www.hotelcardoso.co.mz (retained)
- Nare Diamonds - www.narediamonds.com
- Brinkley Mining - www.brinkley-mining.com
- Luba Freeport - www.lubafreeport.com
- Fly540 - www.fly540.com
- Norse Air - www.norseair.co.za
- Swissta Holdings - www.swissta.com
- Countermine - www.countermine.com
- SA Independent Liner Services
Competent Persons Disclosure
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves, has been prepared by Manfred Marx. Mr Marx is a consultant to Nare and has sufficient experience with the relevant style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to be qualified as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Marx consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
