Lucapa Diamond — Lonrho Mining — Investor Presentation (July 2012)
24 slides from Lucapa Diamond's investor presentation, July 2012
Slide 1: A Diamond Explorer with World Class Potential
For personal use only A DIAMOND EXPLORER WITH WORLD CLASS POTENTIAL Investor Presentation July 2012
Slide 2: Expert quote on Angola and Lulo prospectivity
For personal use only “The writer believes that Angola is one of the most attractive diamond exploration targets in the world and that the Lulo Project is one of the most prospective projects, at this stage of its development, in Angola.” Diamond expert Manfred Marx, June 2011
Slide 3: Company Overview: Lulo Diamond Project
COMPANY OVERVIEW Lulo Diamond Project Lunda Norte Province, Angola For personal use only Ø A Joint Venture covering the 3,000km2 Lulo Diamond Concession in Angola’s diamond-rich north-eastern region. Ø Surrounded by some of the world’s biggest diamond miners and within 150km of the 170 million-carat
Slide 4: Experienced and Successful Management
Ø Chairman Gordon Gilchrist was formerly For personal use only the managing director of Argyle Diamond Mines and the global head of Rio Tinto’s diamond division. Ø Managing Director Miles Kennedy was a co-founder of Kimberley Diamond EXPERIENCED AND SUCCESSFUL Company, which developed Australia’s MA
Slide 5: Lulo – The Right Location
LULO – THE RIGHT LOCATION Ø Lulo is in the diamond-rich Lunda Norte Province, about For personal use only 700km east of the Angolan capital of Luanda via a sealed road. Ø Within the Cuango River Basin, home to Angola’s largest alluvial diamond fields. Ø Surrounded by world diamond giants including D
Slide 6: Lulo – The Right Location
LULO – THE RIGHT LOCATION Ø The Lulo kimberlite province is LONRHO DIAMONDS For personal use only located within the Achaean aged LULO PROJECT Angolan-Kasai Craton. All of the world’s kimberlite mines are Luanda found within such ancient crustal settings. Atlantic Ø The 247 kimberlite targets Ocean
Slide 7: Corporate Structure
CORPORATE STRUCTURE Lonrho Africa (Holdings) Limited Ø (subsidiadiamond Lulo is a Joint Venture between Lonrho and Endiama, Angola’s national ry of Lonrhocompany, Plc, LSE l and sted)covers both alluvial and kimberlite rights. For personal use only Ø Lonrho is the manager and operator of the Joint V
Slide 8: Alluvial Diamond Program
ALLUVIAL DIAMOND PROGRAM Ø Lonrho is bulk testing gravels to determine the grade and For personal use only value of diamonds in the Cacuilo River Valley with the aim of establishing an alluvial mining operation. Ø The area was previously worked by thousands of artisanal diamond miners, who targeted
Slide 9: Alluvial Diamond Program
ALLUVIAL DIAMOND PROGRAM Ø In 2010, Lonrho recommissioned a 15 tonne-per-hour Dense Media Separation (DMS) plant to treat alluvial gravels. For personal use only Ø A Flowsort x-ray diamond recovery unit was added to the DMS plant to improve diamond recoveries. Ø The first diamond recovered was a gem
Slide 10: Alluvial Diamond Program: Summary of Bulk Sampling Results
ALLUVIAL DIAMOND PROGRAM S U M M A RY O F B U L K S A M P L I N G R E S U LT S For personal use only Gravel Size Distribution Diamond Average Largest Sample Number of Grade Volume weight size diamond Number <1ct 1-2ct 2-5ct >5ct diamonds (ct/100m3) (m3) (ct) (ct) (ct) BLK_01 442 5 2 7 4.8 0.69 1.14
Slide 11: Alluvial Diamond Program: Sample of Diamonds Recovered
ALLUVIAL DIAMOND PROGRAM Sample of diamonds recovered from alluvial bulk sampling at Lulo For personal use only 13.7 carats 2.35 carats 53.2 carats “Whilst this 53.2 carat diamond has been recovered from the alluvial gravels, it is clearly derived from a nearby kimberlite source. The task ahead of u
Slide 12: New Kimberlite Diamond Program
NEW KIMBERLITE DIAMOND PROGRAM For personal use only Ø An aeromagnetic survey over one-third of the concession in 2008 identified a major kimberlite field containing about 247 magnetic anomalies. Ø In June 2011, international diamond expert Manfred Marx prioritised 61 of the 247 kimberlite targets f
Slide 13: New Kimberlite Diamond Program – Angolan Kimberlites
NEW KIMBERLITE DIAMOND PROGRAM - ANGOLAN KIMBERLITES Schematic section of an Angolan Kimberlite. The kimberlites tend to have For personal use only a champagne-glass cross section and look more like West Australian lamproites than the carrot shaped pipes of South Africa. This is a function of their
Slide 14: New Kimberlite Diamond Program
NEW KIMBERLITE DIAMOND PROGRAM Ø Lonrho has launched ∼$12M kimberlite exploration program focusing on the 61 priority targets identified by Manfred Marx. For personal use only Ø The kimberlite diamond program at Lulo is the culmination of a systematic four year exploration program. Ø It represents t
Slide 15: New Kimberlite Diamond Program
NEW KIMBERLITE DIAMOND PROGRAM Kimberlite exploration program includes: For personal use only Ø Ongoing surface sampling for kimberlitic indicator minerals. Ø Construction of access roads and bridges. Ø Purchase of a new 50 tonne per hour DMS plant. Ø Narrow diameter diamond drilling of kimberlite t
Slide 16: New Kimberlite Diamond Program
NEW KIMBERLITE DIAMOND PROGRAM Ø New fleet of earthmoving equipment worth ∼$1 million purchased for kimberlite exploration program. For personal use only
Slide 17: New Kimberlite Diamond Program
NEW KIMBERLITE DIAMOND PROGRAM Ø BAUER rig has arrived on site at Lulo at Se12, which will be the first of the 61 kimberlite targets to be drilled. For personal use only
Slide 18: New Kimberlite Diamond Program – Priority Targets
NEW KIMBERLITE DIAMOND PROGRAM – PRIORITY TARGETS For personal use only
Slide 19: New Kimberlite Diamond Program – BAUER Drilling
NEW KIMBERLITE DIAMOND PROGRAM - BAUER DRILLING For personal use only Note: BAUER drilling pictured not at Lulo
Slide 20: BAUER Drilling – Sample Recovery
BAUER DRILLING – SAMPLE RECOVERY For personal use only Note: BAUER sampling pictured not at Lulo
Slide 21: K12 Area – Magnetics – Initial BAUER Drilling Area
K12 AREA – MAGNETICS – INITIAL BAUER DRILLING AREA For personal use only The enlargement is of the K12 area with the area of the priority pipes inferred from the magnetic data. The estimates are speculative but the suggested areas are not unreasonable.
Slide 22: Lonrho – Entering its Most Exciting Phase
LONRHO – ENTERING ITS MOST EXCITING PHASE For personal use only Ø Goal is to unlock the potential of the Lulo Project highlighted by diamond expert Manfred Marx. Ø 61 priority kimberlite targets to be tested for diamonds using the giant Catoca kimberlite mine as the target model1. Ø Ongoing bulk sam
Slide 23: Competent Person's Statement
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 Member of the Australasian Institute of Mining and M
Slide 24: Lonrho Mining Limited
For personal use only 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.lonrho.com.au