Lucapa Diamond — Investor Presentation (December 2013)
23 slides from Lucapa Diamond's investor presentation, December 2013
Slide 1: An Exciting New Diamond Province
An Exciting New Diamond Province Investor Presentation – December 2013
Slide 2: Company Overview
Company Overview Chairman: Shares on issue: Gordon GILCHRIST • 3,852 million (ASX: LOM) • Former MD of Argyle Diamonds and head of Rio Tinto’s global diamond operations Unlisted Options: • 660 million @ 1c -3c1 2 Managing Director: Miles KENNEDY • Former Chairman of WA diamond Market Cap: miner Kimb
Slide 3: Company Overview
Company Overview • Lucapa is the operator of the 3,000km² Lulo Diamond Concession in Angola’s diamond-rich Lunda Norte region • Lucapa has spent ~$40 million to establish Lulo as a new diamond province in one of the world’s biggest diamond producing countries • Lulo hosts a major kimberlite province
Slide 4: Lulo – Home to Rare and Valuable Diamonds
Lulo – Home to Rare and Valuable Diamonds • Lucapa has recovered high-value alluvial diamonds of up to 131.4 carats from Lulo • Many large Lulo diamonds confirmed as Type2A gems, which are among the world’s rarest • First parcel of Lulo diamonds (496.2 carats) sold for $A3.12 million in July 2013 •
Slide 5: 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 opportunity in Angola - huge potential for new discoveries “We believe that huge geological upside is possible in Angola and that the probability of new fin
Slide 6: Lunda Norte Province: The Right Address
Lunda Norte Province: The Right Address • Lulo sits within Angola’s diamond-rich Lunda Norte province • Lulo is located within 150km of the giant Catoca diamond mine on the same favourable geological structure (Lucapa Graben) Slide: 6
Slide 7: Catoca: The Right Neighbour
Catoca: The Right Neighbour • Catoca accounts for ~68% of Angola’s diamond production by value and ~6 per cent of world diamond production¹ • Catoca produced 6.7 million carats in 2012 and generated revenues of $US579 million • Catoca is operated by Russian diamond giant ALROSA, which recently raise
Slide 8: Alluvial Diamonds: Valuable Clues to the Kimberlite Sources
Alluvial Diamonds: Valuable Clues to the Kimberlite Sources • Calonda Formation gravels in the Cacuilo River valley identified as hosting the alluvial diamonds at Lulo • Vast areas of shallow-buried Calonda Formation gravels exist at Lulo • Lucapa’s alluvial diamond program has two aims: 1. Prove up
Slide 9: Alluvial Diamonds: New Diamond Discovery at E46
Alluvials Diamonds: New Diamond Discovery at E46 • The recently-discovered E46 alluvial area has produced exceptional diamond grades of up to 27.7 carats per 100m³ • Diamonds recovered from E46 include rare Type2A gems • E46 gravels currently identified over ~38 hectares - strong potential for minea
Slide 10: Priority Kimberlite Targets: Finding the Next Catoca
Priority Kimberlite Targets : Finding the Next Catoca • The alluvial diamonds being recovered Most kimberlites at Lulo have not been significantly eroded and display features of the “Crater Zone” from Lulo have been washed away from their kimberlite sources over millions of years • Aeromagnetic surv
Slide 11: Se251: The Biggest Kimberlite Discovered at Lulo
Se251: The Biggest Kimberlite Discovered at Lulo • Se251 is the biggest kimberlite discovered at Lulo to date with a surface area of ~ 220 hectares • By comparison, the giant Catoca kimberlite pipe is 60ha • Due to its size and location, Se251 is considered a likely source of the alluvial diamonds b
Slide 12: Se251: The Next Catoca?
Se251: The Next Catoca? • Lucapa is undertaking a systematic drilling and exploration program at Se251 to evaluate this priority kimberlite pipe • Initial aim is to establish the internal structure and geometry of the kimberlite and locate the various eruptive phases • First 19 core holes drilled at
Slide 13: Diamond Grade Variation Model
Diamond Grade Variation Model • Most kimberlites were emplaced by multiple eruptive events. The geology and diamond distribution within these eruptive events can vary dramatically • The diagrams show the diamond grade variation in the well-studied Du Toit’s Pan pipe • Lucapa believes the Lulo kimber
Slide 14: Kimberlite Drilling and Sampling
Kimberlite Drilling and Sampling • Bauer’s specialist Prakla drilling rig being used to test the priority kimberlite targets • Prakla rig can drill both narrow diameter holes to confirm the presence of kimberlite and wide-diameter holes to extract bulk samples Slide: 14
Slide 15: Kimberlite Drilling and Sampling
Kimberlite Drilling and Sampling • Prakla rig can drill to 250m depth to extract 25t kimberlite bulk samples • Kimberlite sample returned to surface from drill bit using a mud suspension • Mud is shaken over screen; +1mm material collected in bulk bags • Bags trucked to Lucapa’s DMS plant for separa
Slide 16: New DMS Diamond Plant – A Game Changer
New DMS Diamond Plant – A Game Changer • New DMS plant commissioned at Lulo in November 2013 • DMS plant has operated well above its nameplate 50tph capacity • New diamond plant is a game changer for Lucapa, enabling the company to significantly scale up its diamond sampling operations Slide: 16
Slide 17: New DMS Diamond Plant – A Game Changer
New DMS Diamond Plant – A Game Changer • Processing of BLK_18 stockpiles commenced in November 2013 • BLK_18 gravels are from pits overlaying the priority Se251 kimberlite • Diamonds recovered from first day of processing through DMS plant • First kimberlite breccias excavated from Se251 kimberlite
Slide 18: Earthmoving Equipment – All in Place
Earthmoving Equipment – All in Place • Lucapa owns its own fleet of Caterpillar earthmoving equipment being used for the kimberlite and alluvial diamond exploration programs at Lulo Slide: 18
Slide 19: No Near-Term Capex Requirements
No Near-Term Capex Requirements • Lucapa has paid for the earthmoving equipment at Lulo, the new DMS diamond plant and the mobilisation of Bauer drilling equipment to site • No near-term capex requirements • $2.4m¹ in cash at 30 September 2013 plus $1.4m entitlement issue proceeds • Lucapa will appl
Slide 20: Lulo: Alluvial and Kimberlite Diamond Rights
Lulo: Alluvial and Kimberlite Diamond Rights • Lulo is a JV with Endiama, Angola’s national diamond company, covering both alluvials and kimberlites • Lucapa is the manager and operator of the JV • Lucapa has a 40% interest in alluvial JV and 39% of kimberlites¹ • Lucapa to recoup all exploration an
Slide 21: Summary: Why Lucapa is Set to Sparkle
Summary: Why Lucapa is Set to Sparkle • Lulo is a new diamond province in one of the world’s biggest diamond producing countries • Located within 150km of Angola’s largest diamond mine and on the same favourable geological structure • Lucapa has recovered rare and valuable Type 2A diamonds of up to
Slide 22: 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, mineral resources or ore reserves is based on information compiled by David Jones BSc (Hons) MSc of Ascidian Prospecting Pty Ltd, who is a Corporate Me
Slide 23: 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
Lucapa Diamond Company — Investor Presentation (December 2013) on 6ix