Lucapa Diamond — Lonrho Mining — Shareholder Meeting (July 2011)
18 slides from Lucapa Diamond's shareholder meeting presentation, July 2011
Slide 1: A Diamond Explorer with World Class Potential
A DIAMOND EXPLORER WITH WORLD CLASS POTENTIAL Investor Presentation July 2011
Slide 2: Diamond expert Manfred Marx quote on Angola and Lulo
“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, Lunda Norte Province, Angola
COMPANY OVERVIEW Lulo Diamond Project, Lunda Norte Province, Angola A Joint Venture covering the 3,000km2 Lulo Diamond Concession in Angola’s diamond-rich north-eastern region. Surrounded by some of the world’s biggest diamond miners and within 150km of the 170 million-carat Catoca diamond mine.
Slide 4: Experienced and Successful Management
EXPERIENCED AND SUCCESSFUL MANAGEMENT Managing Director, Miles Kennedy was a co-founder of Kimberley Diamond Company, which developed Australia’s first new diamond mine in 20 years (at Ellendale) before being taken over by Gem Diamonds for $320 million in 2007. Exploration Director, David Jones
Slide 5: Right Time ...
RIGHT TIME ... Uniquely positioned to benefit from rising world diamond prices. “As De Beers suggests, the sector may be on the threshold of a purple patch as two new and growing markets (China and India) start buying diamonds in a market where new-mined supply is likely to grow slowly, if at all.”
Slide 6: Right Place ...
RIGHT PLACE ... Lulo is in the diamond-rich Lunda Norte Province, about 700km east of the Angolan capital of Luanda via a sealed road. Within the Cuango River Basin, home to Angola’s largest alluvial diamond fields. Surrounded by world diamond giants including De Beers, Alrosa and Trans Hex.
Slide 7: Right Place ... Lulo kimberlite province
RIGHT PLACE ... LONRHO DIAMONDS LULO PROJECT The Lulo kimberlite province is located within the Achaean aged Luanda Angolan-Kasai Craton. All of the world’s kimberlite mines are found within such ancient Atlantic crustal settings. Ocean The 247 kimberlite targets identified at Lulo are hosted by
Slide 8: Lulo - Corporate Structure
LULO - CORPORATE STRUCTURE Lulo is a Joint Venture between Lonrho and Endiama, Angola’s national diamond company and covers both alluvial and kimberlite rights. Lonrho is the manager and operator of the Joint Venture.
Slide 9: Lulo – Alluvial Diamond Program
LULO – ALLUVIAL DIAMOND PROGRAM Lonrho is bulk testing gravels to determine the grade and value of diamonds in the Cacuilo river valley with the aim of establishing an alluvial mining operation. The area was previously worked by thousands of artisanal diamond miners, who targeted the gravels of
Slide 10: Lulo – Alluvial Diamond Program: DMS plant
LULO – ALLUVIAL DIAMOND PROGRAM In 2010, Lonrho recommissioned a 15 tonne-per-hour Dense Media Separation (DMS) plant to treat alluvial gravels. A Flowsort x-ray diamond recovery unit was added to the DMS to improve diamond recoveries. The first diamond recovered was a gem-quality 22.25 carat
Slide 11: Lulo – Alluvial Diamond Program: Bulk Sampling Results
LULO – ALLUVIAL DIAMOND PROGRAM SUMMARY OF BULK SAMPLING RESULTS Size Distribution Gravel 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_01 143 1 1 2 2.1 1.05 1.5 1.35 BLK_02 293 33 7 3 1 44 47.6 1.08
Slide 12: Lulo – Alluvial Diamond Program: Diamonds from BLK_03
LULO – ALLUVIAL DIAMOND PROGRAM Sample of diamonds recovered from alluvial bulk sample (BLK_03).
Slide 13: Lulo – Kimberlite Diamond Program
LULO – KIMBERLITE DIAMOND PROGRAM An aeromagnetic survey over one-third of the concession identified a major kimberlite field containing about 247 magnetic anomalies. The kimberlite exploration program has reached an advanced stage where most of the 247 magnetic anomalies can now be confidently
Slide 14: Lulo – Kimberlite Diamond Program
LULO – KIMBERLITE DIAMOND PROGRAM
Slide 15: Corporate
CORPORATE MD, Miles Kennedy invited to Hong Kong and China for discussions with two Chinese groups. Discussions have canvassed a possible injection of equity into Lonrho to accelerate the kimberlite and alluvial diamond programs at Lulo. Chinese requested diamond expert Manfred Marx review the
Slide 16: Manfred Marx Report
MANFRED MARX REPORT Report conclusions: Angola is one of the most attractive diamond exploration targets in the world and Lulo is one of the most prospective projects, at this stage of its development, in Angola. A $US47 million plan to accelerate alluvial and kimberlite exploration work at Lulo
Slide 17: Competent Person’s Statement
Competent Person’s Statement The information in this presentation that relates to Exploration Results and Mineral Resources is based on information compiled by Mr David Jones, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Jones is a Director of Lonrho Mining Limited and
Slide 18: 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