Lucapa Diamond — Investor Presentation (December 2010)
29 slides from Lucapa Diamond's investor presentation, December 2010
Slide 1: A Diamond Explorer with World Class Potential
A Diamond Explorer with World Class Potential December 2010
Slide 2: The Lulo Diamond Concession
D.R.C The Lulo Diamond D.R.C Concession is located in the Lunda Norte Province of Angola, about 700km east of Luanda. LULO The Lulo Project targets both alluvial and kimberlite diamond targets and is a Joint Venture between Lonrho and Endiama, the national diamond company of Angola. NAMIBIA
Slide 3: The Lulo Diamond Concession area and surroundings
The Lulo Diamond Concession covers an area of about 3,000km2 and is located on the eastern margin of the Cuango River. The alluvial diamond fields on the Cuango River are the largest in Angola. Lonrho’s Concession is surrounded by concessions held by some of the world’s leading diamond miners.
Slide 4: Lonrho Diamonds Lulo Project
LONRHO DIAMONDS LULO PROJECT Luanda The Lulo Project occurs within flat- lying sediments of the Congo Atlantic Basin that overlie the Achaean Congo Craton. Ocean The project lies within the Lucapa Graben, an area tectonically favorable for kimberlite emplacement. There has been extensive artisanal d
Slide 5: Angola Roads and Infrastructure
ANGOLA The Roads and Infrastructure The Cacuilo River Bridge out of Tchamiquilengue The road to Saurimo – in 2005 – the Chinese have re-surfaced, The roadside is still littered it but resurfacing is failing and the potholes redeveloping. with reminders of the war Though it’s a lot better than this n
Slide 6: Tchamiquilengue village in the concession
Tchamiquilengue – The main village in the concession – located about 7km by road from the camp site. There are numerous stores, cantinas, etc and 3 diamond buyers set up in shopfronts along the main street.
Slide 7: Lulo 1:1,000,000 Geology
LULO 1:1,000,000 GEOLOGY* Regional geology of the Lulo Area. Ancient wind-blown sands of the Kalahari Fm cover much of the area. The underlying Calonda Fm is the main source of alluvial diamonds throughout the area. Basement rocks are exposed in some valleys. *The geological map is derived from the
Slide 8: Geological Succession
GEOLOGICAL SUCCESSION The kimberlites in the Lulo area were erupted 90 million years ago through ancient Karoo Sediments. They were covered and preserved by the Calonda Fm and Kalahari Fm shortly after emplacement. Kalahari Sand Calonda Fm Basement Karoo Sediments Miraduro da Lua escarpment A sectio
Slide 9: Schematic Relationship of Geological Units – Lulo Area
SCHEMATIC RELATIONSHIP OF GEOLOGICAL UNITS – LULO AREA A schematic, highly simplified picture of how the geological units in the Lulo area are related. Most pipes in the area are not exposed and have not been eroded for 90 million years. They do not contribute directly to the diamond content of the
Slide 10: Alluvial Evaluation
ALLUVIAL EVALUATION • Lonrho is evaluating alluvial diamond deposits within the Cacuilo River valley with the aim of establishing an alluvial mining operation as soon as possible. • The area targeted is located near the western side of the concession and was previously worked by artisinal miners (ga
Slide 11: Lonrho's Initial Alluvial Evaluation Program
LONRHO’S INITIAL ALLUVIAL EVALUATION PROGAM
Slide 12: Extent of Garimpeiro Diggings – Alluvial Target Area
EXTENT OF GARIMPEIRO DIGGINGS – ALLUVIAL TARGET AREA
Slide 13: Garimpeiro Operations – 2005 Scale of Operations
Garimpeiro Operations – 2005 Scale of Operations The following photos were taken by a Russian geologist who visited the area during 2005 when, purportedly, more than 10,000 garimpeiros were operating on the Concession.
Slide 14: Garimpeiro Operations – 2005 The Level of Technology
Garimpeiro Operations – 2005 The Level of Technology
Slide 15: Proposed Follow-up Program
PROPOSED FOLLOW-UP PROGRAM Plant Site STAGE 1 PROGRAM –Bulk sampling to confirm that the gravels are diamondiferous and of significant grade and value. Assuming the preliminary bulk sampling provide reasonable grades, systematic trenching/pitting program hoping to define a mineable resource of ~1-2
Slide 16: Geological Mapping Alluvial Area – July 2010
GEOLOGICAL MAPPING ALLUVIAL AREA – July 2010 BLK_2 Bulk sample BLK_2 A diamond recovered from BLK_2
Slide 17: Bulk Sample Site 2
BULK SAMPLE SITE 2 This site is located about 50m from the processing plant and gravels have been stockpiled next to the pit. The cut has dimensions of 30m x 10m and the gravel is generally around 1m thick. The sample should be about 300m3. The photograph above shows Calonda Formation gravels excava
Slide 18: Calonda Formation Gravels
CALONDA FORMATION GRAVELS Most of the gravels exposed by Lonrho to date appear to be from the older Calonda Fm (rather than recent river terraces). The Calonda Fm gravels are typically about 1m thick and are characterised by rounded white cobbles. The gravels often contain Ilmenite an abundance of k
Slide 19: Lonrho's DMS Plant at Lulo
LONRHO’S DMS PLANT AT LULO
Slide 20: The Results So Far – BLK2
THE RESULTS SO FAR – BLK2 Table 1 – Bulk Sampling Summary Size2 Tonnes Tonnes Distribution Largest Sample Sample Sample Number Weight Average Diamond Number Excavated Treated + 5ct +1ct - 1ct Diamonds Carats Stone Size (cts) (cts) BLK_21 650 90 1 2 - 3 26.45 8.81 22.25 Notes: 1 Sample processing is
Slide 21: Kimberlite Exploration
KIMBERLITE EXPLORATION § Interpretation of a detailed, low-level aeromagnetic survey flown by Lonrho in 2008 identified about 220 magnetic anomalies. Most of these are thought to be caused by kimberlites. § The kimberlites were erupted about 90 million years ago but were covered by alluvial sediment
Slide 22: Aeromagnetic Data from the Lulo Area
Image of Aeromagnetic Data from the Lulo Area. More than 220 anomalies were identified with most likely to be kimberlites. In adjoining areas more than 80% of similar magnetic features have proven to be kimberlitic. Lonrho’s current alluvial operations could derive diamonds from any of the kimberlit
Slide 23: Kimberlite Follow-up - Angolan Kimberlites
KIMBERLITE FOLLOW-UP - ANGOLAN KIMBERLITES Schematic section of an Angolan Kimberlite. The kimberlites look more like lamproites than the carrot shaped pipes of South Africa. This is a function of their high degree of preservation. Diamonds are concentrated in the kimberlite. The term tuff is used i
Slide 24: Schematic Relationship of Geological Units – Lulo Area
SCHEMATIC RELATIONSHIP OF GEOLOGICAL UNITS – LULO AREA A schematic, highly simplified picture of how the geological units in the Lulo area are related. Most, pipes in the area are not exposed and have not been eroded for 90 million years. They do not contribute directly to the diamond content of the
Slide 25: K72 Area - Magnetics
K72 Area - Magnetics The enlargement is of the K72 area with the area of the pipes inferred from the magnetics data. The estimates are speculative but K72 outcrops and has been visited – the suggested area is not unreasonable.
Slide 26: Recent Operations - Kimberlite Exploration
RECENT OPERATIONS - KIMBERLITE EXPLORATION For operational reasons Lonrho focused on several anomalies in the area shown. The procedure is to collect a sample from the target and prepare a mineral concentrate in the field. This only works if you are very close to a source.
Slide 27: Indicators from Kimberlite
Indicators from kimberlite Very fresh picroilmenite, pyrope garnet and chrome diopside from Anomaly 165 above and 164 below. Weathered Kimberlite in garimpeiro pit at Anomaly 210
Slide 28: Old Kimberlites and Magnetics
OLD KIMBERLITES AND MAGNETICS Several kimberlites appear to be part of a single magnetic feature. All kimberlites are magnetic but some are so subtle they were not called anomalies.
Slide 29: Lonrho Mining Limited
LONRHO MINING LIMITED ACN 111 501 663 34 BAGOT ROAD SUBIACO WESTERN AUSTRALIA 6008 PO BOX 298 WEST PERTH WESTERN AUSTRALIA 6872 TEL (+61 8) 9489 9200 FAX (+61 8) 9489 9201 EMAIL general@lonrho.com.au WEBSITE www.lonrhomining.com Competent Person’s Statement The information in this presentation that
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