The Lucapa Diamond Co Ltd (ASX:LOM) has been operating in Angola for eight years on its flagship Lulo project.
“The Angola country is literally littered with diamonds,” according to chief executive officer, Stephen Weatherall. Before you all rush off to Angola, bear in mind Lucapa uses some clever technology and processes to find its stones, specifically x-ray transmissive (XRT) technology.
So, in a country noted for its diamond deposits, it’s impressive that Lucapa should have “the most prospective diamond project in Angola”.
“Over the last eight years we have evolved the resource on alluvial diamonds to such an extent that we have been able to deliver an alluvial diamond mine, which is now delivering the highest dollars per carat prices in the world in 2016,” Weatherall told Proactive Investors.
In tandem, the company has been able to advance its kimberlite exploration programme, identifying significant targets that will assist the company in its primary goal, which is “searching for the kimberlite source”.
What makes Lucapa’s diamonds so special is their size: diamonds characterised as greater than 10.8 carats in weight, known as “specials” in the industry. It also has a high proportion of “fancy colour stones”, and this special mix allows the company to sell its stones at much higher prices.
How big? Well, earlier this year, the company uncovered the 27th largest diamond ever discovered (you can see a copy of it some two-and-a-half minutes in to this film). It is the largest diamond ever discovered in Angola.
Yours for a cool US$16mln dollars – except someone has already bought it.
Signing off, Weatherall said 2016 had been a fantastic year, and it is difficult to image that 2017 could be any better, but the Lucapa boss is confident “it will also be an exciting year”, as the company steps up its kimberlite exploration programme and makes use of the XRT technology.