Lucapa Diamond — Africa Down Under Conference 2014
22 slides from Lucapa Diamond's conference presentation, September 2014
Slide 1: Africa Down Under Conference Presentation
Africa Down Under Conference Presentation September 2014
Slide 2: Corporate Overview
Corporate Overview Chairman: Shares on Issue: Gordon GILCHRIST • Former head of Rio Tinto’s global • 181.7 million (ASX: LOM) diamond operations and MD of Argyle Listed Options: Diamonds • 112.2 million @ 30c1 (ASX:LOMO) Managing Director: Unlisted Options: Miles KENNEDY • 5 million @ 57c – 90c2 • F
Slide 3: Lulo: Home to Large Valuable Diamonds
Lulo: Home to Large Valuable Diamonds 131.4 carats 95.45 carats 53.3 carats 32.2 carats Slide: 3
Slide 4: Lulo Diamonds: Top Quality
Lulo Diamonds: Top Quality • High provenance of type IIa diamonds - the rarest and most valuable category of diamonds in the world • Lulo diamonds include large D-colour exceptional whites and fancy colours – pinks and yellows • High end diamond price > $25,000 per carat Slide: 4
Slide 5: Lulo Diamonds: Exceptional Average Sale Prices
Lulo Diamonds: Exceptional Average Sale Prices • Two parcels of Lulo alluvial diamonds weighing 867.5 carats have sold for $6 million • This represents an exceptional average price of $6,960 per carat. World average is ~$US120 per carat • Exceptional average prices due to: Large stone population:
Slide 6: Angola – Where Diamond Discoveries Are Made
Angola – Where Diamond Discoveries Are Made • Angola is the world’s 4th largest producer of diamonds by value • Forecast production of 10 million carats in 2014 • New era of post-civil war stability has paved the way for significant new investment in diamond exploration • Angola’s potential for new
Slide 7: The Lulo Diamond Concession
The Lulo Diamond Concession • A 3,000km2 concession in the heartland of Angola’s diamond-rich Lunda Norte province • Easy access via good sealed roads • Workforce readily sourced from local townships • Lucapa has operated continuously at Lulo for six years • Lulo hosts extensive diamond- bearing all
Slide 8: Extensive Alluvial Diamond Deposits Identified
Extensive Alluvial Diamond Deposits Identified • Lucapa has discovered extensive areas of exposed and near-surface Calonda Formation gravels at Lulo covering hundreds of square km • Bulk sampling has confirmed these gravels host alluvial diamonds of exceptional quality and size Slide: 8
Slide 9: Mining of Lulo Diamonds Set to Commence
Mining of Lulo Diamonds Set to Commence • All material commercial terms and conditions for alluvial mining licence finalised • The mining licence covers 218km2 along the Cacuilo River where Lucapa has been recovering large and valuable alluvial diamonds • Economic viability and environmental reports
Slide 10: Diamond-Rich Terraces Throughout the Mining Area
Diamond-Rich Terraces Throughout the Mining Area • In the E46 Alluvial Area, Lucapa has identified rich diamondiferous gravels in elevated terraces adjacent to the Cacuilo River B • Gravels from these elevated terraces sampled up to 27 carats per 100m3 • Significantly, project geologists have confir
Slide 11: The Diamond-Rich E46 Area - Schematic Section
The Diamond-Rich E46 Area - Schematic Section Aerial view of Cacuilo River Valley showing Bulk sample pit in the E46 alluvial current river and outlines of old river courses area showing the main gravel within the valley. The Northern Terrace occurs horizon. This pit had a diamond in the upper right
Slide 12: Alluvial Diamond Mining – The Exploration Model
Alluvial Diamond Mining – The Exploration Model • Lucapa’s mining licence application is based on an exploration target generated by the project’s geologists • Lucapa believes the mining licence area has the exploration potential to host economic alluvial diamond deposits containing at least 500,000
Slide 13: Alluvial Diamond Mining - Scaling Up
Alluvial Diamond Mining - Scaling Up • Additional fleet of leased earthmoving equipment scheduled to arrive in Angola in the first week of September 2014. This extra equipment will enable parallel alluvial mining and kimberlite exploration activities • Operational and management teams being expanded
Slide 14: DMS Diamond Plant: Capacity For Increased Throughput
DMS Diamond Plant: Capacity For Increased Throughput • New Dense Media Separation diamond plant commissioned in November 2013 • Improved sampling results due to more efficient treatment and recovery processes • Can be operated on double shifts under mining scenario • Ability to campaign mine alluvia
Slide 15: The Lulo Kimberlite Story: Finding Another Catoca
The Lulo Kimberlite Story: Finding Another Catoca • Lulo is within 150km of the Catoca diamond mine and on the same geological belt (Lucapa Graben) • Catoca is the world’s fourth biggest kimberlite mine with annual production of ~6.5 million carats • Catoca has an estimated mine life of ~30 years •
Slide 16: Priority Kimberlite Pipes Already Identified
Priority Kimberlite Pipes Already Identified • Lucapa has identified close to 300 kimberlite targets at Lulo in two distinct clusters • Project geologists have already classified ~100 as confirmed or probable kimberlites • The Lulo kimberlites prioritised for testing have little or no sand cover • L
Slide 17: Four Diamond-Bearing Kimberlites Already Confirmed
Four Diamond-Bearing Kimberlites Already Confirmed • As at August 1, Lucapa had recovered 15 diamonds from kimberlite samples excavated from four separate pipes at Lulo • 12 of those kimberlite diamonds were recovered from the largest pipe, Se251 • Subsequent testing has confirmed half of the Se251
Slide 18: Lulo: Both Alluvial & Kimberlite Diamond Rights
Lulo: Both Alluvial & Kimberlite Diamond Rights • Lucapa is the manager and operator of the Lulo JV with Endiama, Angola’s national diamond mining enterprise • Lulo JV includes alluvial and kimberlite exploration licences, both extended until May 2016 • Lucapa has a 40% interest in alluvials and a 3
Slide 19: One of the Best Emerging Diamond Opportunities
One of the Best Emerging Diamond Opportunities • Lucapa Diamond Co Ltd represents one of the best emerging pure-play diamond investment opportunities Lulo has been described as “perhaps currently the hottest diamond exploration property in Angola” The diamonds Lucapa has been recovering from Lul
Slide 20: Forward-Looking Statements
Forward-Looking Statements Forward-Looking Statements • This Presentation has been prepared by Lucapa Diamond Company Limited. This document contains background information about Lucapa Diamond Company Limited current at the date of this Presentation. The Presentation is in summary form and does not
Slide 21: Competent Person’s Statement
Competent Person’s Statement Competent Person’s Statement Information in this Presentation that relates to exploration targets, exploration results, mineral resources or ore reserves is based on and fairly represents information and supporting documentation prepared and compiled by Albert Thamm who
Slide 22: Contact Details
CONTACT DETAILS: 34 Bagot Road Subiaco Tel: (+61 8) 9489 9200 Western Australia 6008 Fax: (+61 8) 9489 9201 PO Box 298 West Perth Email: general@lucapa.com.au Western Australia 6872 Web: www.lucapa.com.au
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