4th Oct 2006 15:33
Lonrho Africa PLC04 October 2006 LONRHO AFRICA PLC ("Lonrho" or "the Company") 66 carat diamond recovered in South Africa Lonrho is pleased to announce that Nare Diamonds Limited ("Nare"), has recovereda 66 carat diamond from its Schmidtsdrift diamond mine in South Africa. Thegemstone is rectangular in shape and of very high quality. It has not beenvalued but is expected to yield significant value. This is Nare's second discovery of a large stone at Schmidtsdrift sinceproduction at the mine began in March 2006. In April, Nare announced thediscovery of a 235 carat stone which was octahedron in shape and of very goodquality. The diamond was sold for US$10,205.91 per carat, yielding a total priceof US$2,398,695. Since commencing production, Nare has sold a total of 3,849 carats of diamondsat an average price of US$1,161 per carat for an aggregate consideration ofapproximately US$4.5 million. Nare's most recent diamond sale saw 1,177.83carats sold for US$735,328, an average price of approximately US$624 per carat.Included in that sale were two large diamonds in excess of 30 carats each andsix diamonds between 10 and 30 carats. "Schmidtsdrift's proclivity for recovering larger than average stones is due tothe quarantining of its land as a training area for the South African Militaryresulting in it being previously un-prospected," said David Lenigas, JointExecutive Chairman and CEO of Lonrho. "We are absolutely delighted with the recovery of yet another exceptional stone.The recovery of this 66 carat stone and the recovery of the 235 carat stoneearlier this year illustrate the production potential and value of theSchmidtsdrift operation. What is even more encouraging is that we are findingdiamonds in excess of 10 carats on a regular basis," commented Charles Mostert,CEO of Nare. For further information, please contact: Lonrho Africa PlcDavid Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Strand Partners Limited +44 (0)20 7409 3494Simon Raggett +44 (0)7769 883 666 Cardew Group +44 (0)20 7930 0777Nadja Vetter +44 (0)7941 340 436Eden Mendel +44 (0)7887 676 603Emma Consett +44 (0)7971 468 308 Notes to Editors: About Lonrho Africa Plc Lonrho is in the process of re-establishing a significant presence on theAfrican continent. Its investment and acquisition strategy, which was adoptedfollowing the appointment of David Lenigas as Chief Executive in December 2005,focuses on the natural resources, infrastructure, leisure and agribusinesssectors. Lonrho's executive team has considerable experience across theseindustries in a wide range of countries. This year, the Company has announcedinvestments in Brinkley Mining Plc, Nare Diamonds Ltd and Luba Freeport inEquatorial Guinea. About Nare Diamonds Limited Lonrho acquired a 17 per cent. stake in Nare on 11 April 2006 and LonrhoAfrica's Chief Executive David Lenigas was appointed as its non-ExecutiveChairman. Nare has a combination of diamond production and exploration operations locatedin the Republic of South Africa. These include the Schmidtsdrift Diamond Mine(80% interest), the Klipspringer Joint Venture (20% interest), the Groen RiverProject (100% interest) and the Kamfersdam Kimberlite Pipe and tailingsoperation (100% interest). Diamond production at the Schmidtsdrift Mine commenced in March 2006. The mineis located 80km north west of Kimberley in the Northern Cape Province andconsists of 31,227 hectares of diamondiferous gravel deposits. Previous miningactivities at Schmidtsdrift yielded 33,679 carats with an average stone size of1.14 carats. Infrastructure on the Schmidtsdrift Mine is well developed and the assetinventory includes a modern diamond recovery plant and equipment. Miningoperations are sub-contracted to experienced operators. Ends This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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