Lucapa Diamond — Investor Presentation (June 2014)
26 slides from Lucapa Diamond's investor presentation, June 2014
Slide 1: Exceptional Diamonds. Exceptional Potential
Exceptional Diamonds. Exceptional Potential New York Presentations - June 2014
Slide 2: Company Overview
Company Overview Chairman: Gordon GILCHRIST Shares on Issue: • Former head of Rio Tinto’s global • 159.2 million (ASX: LOM) diamond operations and MD of Argyle Listed Options: Diamonds • 44.4 million @ 30c1 (ASX:LOMO) Managing Director: Unlisted Options: Miles KENNEDY • 5 million @ A57c – A90c2 • Fo
Slide 3: Company Overview
Company Overview • An Exciting New Diamond Province: ASX-listed Lucapa operates the 3,000km² Lulo Diamond Concession in Angola’s diamond-rich Lunda Norte region • Both Alluvials & Kimberlite Pipes: Lucapa has discovered two major kimberlite provinces at Lulo and extensive diamond-rich alluvial grave
Slide 4: Lulo Diamonds: Big is Beautiful
Lulo Diamonds: Big is Beautiful 95.45 carats 32.2 carats 53.3 carats 131.4 carats Slide: 4
Slide 5: Lulo Diamonds: Exceptional Gems
Lulo Diamonds: Exceptional Gems • Many large Lulo diamonds have been confirmed as Type 2A gems, which are among the rarest category in the world • Lulo diamonds also include D colour exceptional whites Slide: 5
Slide 6: Lulo Diamonds: Premium Prices
Lulo Diamonds: Premium Prices • Two parcels of Lulo alluvial diamonds weighing 867.5 carats were sold in 2013 and 2014 • These diamonds sold for more than $A6m ($US5.6m). This represents an exceptional average price of $A6,960 ($US6,526) per carat Slide: 6
Slide 7: Angola – The Right Country for Diamond Discoveries
Angola – The Right Country for Diamond Discoveries • Angola is the world’s 4th largest producer of diamonds by value • New era of stability and post-civil war opportunity - huge potential for new discoveries • This has been recognised by the world’s two biggest diamond miners, De Beers and Alrosa, w
Slide 8: The Lulo Diamond Concession
The Lulo Diamond Concession • The Lulo concession covers 3,000km2 in Angola’s diamond-rich Lunda Norte province • Located ~700km from the Angolan capital Luanda with good access via sealed roads • Workforce sourced from local townships • Lulo hosts two kimberlite fields and extensive alluvial diamon
Slide 9: 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 rights • Lucapa has a 40% interest in alluvials and 39% of kimberlites¹ • Kimberlite an
Slide 10: Lunda Norte Province: The Right Geological Address
Lunda Norte Province: The Right Geological Address • Lucapa’s 3,000km2 Lulo diamond concession is located within 150km of the giant Catoca diamond mine • Lulo also sits on the same favourable geological structure (Lucapa Graben) as Catoca Slide: 10
Slide 11: Catoca: The Right Neighbour
Catoca: The Right Neighbour • Catoca is the fourth biggest kimberlite mine in the world and accounts for 80% of Angola’s rough diamond sales • Catoca produces approximately 6.8 million carats per annum • Open pit mining operations are scheduled to continue until 2034 • Operated by the world’s bigges
Slide 12: Priority Kimberlite Targets: Finding the Next Catoca
Priority Kimberlite Targets : Finding the Next Catoca • Two aeromagnetic surveys flown by Lucapa have identified more than 250 kimberlite targets at Lulo • More than 60 kimberlite targets selected for priority testing, based on size and limited or no sand cover • Bulk sampling of material excavated
Slide 13: Priority Kimberlite Targets: Finding the Next Catoca
Priority Kimberlite Targets: Finding the Next Catoca • The 2013 aeromagnetic survey included a 70km2 strip which could not be flown in 2008 due to Garimpeiro activity • The survey revealed eight new kimberlite targets in this strip, including the huge Se251 pipe • These pipes are in the same area wh
Slide 14: Se251: A Huge 220ha Kimberlite Pipe
Se251: A Huge 220ha Kimberlite Pipe • At 220 hectares, the Se251 pipe is the biggest kimberlite discovered at Lulo • All 19 core holes drilled at Se251 intersected kimberlitic material • Se251 is considered a likely source of the large alluvial diamonds found above and around this pipe • Kimberlite
Slide 15: Se251: A Diamond-Bearing Kimberlite Pipe
Se251: A Diamond-Bearing Kimberlite Pipe • Se251 confirmed as the first diamondiferous kimberlite pipe at Lulo in June 2014 • Four diamonds weighing 1.85 carats recovered from the 7 and 6B sample pits at the Se251 kimberlite pipe • Kimberlite diamonds are of good shape and colour • Se251 pipe though
Slide 16: Se220 – Another Priority Kimberlite Target
Se220 – Another Priority Kimberlite Target • Se220 is a ~50ha kimberlite located 1.5km west of Se251 • Lucapa geologists believe the large diamonds recovered from alluvial samples could be derived from a tributary that once drained Se220 • The highest indicator mineral counts over the kimberlite gen
Slide 17: Kimberlite Drilling and Sampling
Kimberlite Drilling and Sampling • Priority kimberlite targets have initially been tested using a specialist Prakla rig • Excavators now being used to extract bulk samples from priority kimberlites, including the Se251, Se220, Se257 and Se248 pipes Slide: 17
Slide 18: Alluvials: Valuable Diamonds & Clues to the Source
Alluvials: Valuable Diamonds & Clues to the Source • Lucapa has discovered vast areas of Calonda Formation gravels at Lulo hosting alluvial diamonds of exceptional grade and size • The alluvial diamonds recovered from these Calonda Formation gravels have also helped Lucapa identify the source kimber
Slide 19: The Near-Term Pathway to Diamond Production
The Near-Term Pathway to Diamond Production • Mining licence application covers a 218km2 area where Lucapa has been recovering large Type 2A alluvial diamonds • This area is estimated to contain at least 500,000 carats • Economic viability and environmental reports completed • Lucapa’s goal is to fi
Slide 20: Exploration Identifies New Alluvial Diamond Potential
Exploration Identifies New Alluvial Diamond Potential • Lucapa has identified richly diamondiferous gravels at E46 - an elevated terrace adjacent to the Cacuilo River • Exploration has demonstrated that elevated terraces occur at similar elevations along much of the Cacuilo River within the 218km2 m
Slide 21: New DMS Diamond Plant – Scaling Up
New DMS Diamond Plant – Scaling Up • New Dense Media Separation diamond plant commissioned at Lulo in November 2013 • New plant has operated well above its nameplate 50tph capacity • This has enabled Lucapa to scale up its diamond operations Slide: 21
Slide 22: Earthmoving Equipment – All in Place
Earthmoving Equipment – All in Place • Lucapa also owns its own on-site fleet of Caterpillar earthmoving equipment Slide: 22
Slide 23: Lucapa – Summary of Recent Achievements
Lucapa – Summary of Recent Achievements • The largest kimberlite discovered at Lulo, Se251, confirmed as a diamondiferous pipe as sampling of other priority kimberlite targets continues • New 50tph DMS diamond plant successfully commissioned at Lulo • Kimberlite and alluvial exploration licences at
Slide 24: Lucapa – Near-Term Goals and News Flow
Lucapa – Near-Term Goals and News Flow • Lucapa is rapidly closing in on its ultimate goal of identifying the primary kimberlite sources of the exceptional alluvial diamonds being recovered from Lulo. Se251 is the first kimberlite confirmed as a diamondiferous pipe and thus a likely primary diamond
Slide 25: Competent Person’s & Forward-Looking Statements
Competent Person’s & Forward-Looking Statements Competent Person’s Statement • Information in this presentation that relates to exploration results and resources is based on and fairly represents information and supporting documentation prepared and compiled by Albert Thamm BSc (Hons) MSc, who is a
Slide 26: 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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