30th Jul 2008 09:57
30 July 2008
Lonrho Plc
("Lonrho")
LONRHO MINING
GOVERNMENT APPROVAL SIGNALS EXPLORATION GREEN
LIGHT FOR WORLD-CLASS ANGOLAN DIAMOND PROJECT
Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased to announce that Lonrho Mining Ltd (formerly known as Nare Diamonds), which is owned 24.16% by Lonrho, has made the following announcement to the Australian Securities Exchange this morning:
HIGHLIGHTS
Angolan Government approves kimberlite diamond exploration and mining joint venture, paving the way for kimberlite operations to start at world class Lulo project
Independent geophysical consultant has identified 217 magnetic anomalies, of which an estimated 160 are likely to be kimberlite pipes
Drilling program to start this year on the 6 largest kimberlite anomalies
Bulk sampling program to commence on alluvials, with initial diamond recoveries expected this year
Australian-based diamond exploration and development company Lonrho Mining Limited (ASX: LOM) ("Lonrho Mining" or the "Company") today announced it has received government approval to commence exploration of the kimberlite targets at the Lulo Diamond Concession in Angola (Figure 1).
The Company has now received all the necessary approvals to commence exploration and development of the alluvial and kimberlite deposits at Lulo.
The Lulo Project is located on the eastern margin of the Cuango River catchment approximately 650km east of Luanda within the Lunda Norte Province of northeastern Angola. Many experts believe this area will become a prolific region for the production of diamonds. The Catoca Mine, one of the largest kimberlite diamond mines in the world, produces 60% of Angola's diamond production and is located 90km east of the Lulo Diamond Concession. The Catoca mine produced approximately 7 million carats in 2007.
The Cuango River alluvial diamond fields are the largest in Angola. The operators of these concessions are amongst the leading diamond miners in the world, including De Beers, Trans Hex and Alrosa. The largest alluvial diamond mine in Angola is Chitotolo in the Lunda Norte province, which produces approximately 150,000 carats per annum.
This development follows the recently completed aeromagnetic and radiometric survey which resulted in the identification of an extensive cluster of at least 217 magnetic anomalies. Based on regional comparisons, it is estimated that 160 of these anomalies are likely to be kimberlites (Figures 2, 3 & 4).
Lonrho Mining's consultant geologist Manfred Marx said:
"To date, the results from the Lulo survey are the most encouraging that I have witnessed since the discovery of the Orapa Mine in Botswana in 1967."
Commenting on the approvals, Lonrho Mining's Chief Executive Officer Charles Mostert said:
"This is a significant milestone for the Company and its shareholders as we now have full government approvals to commence the exploration and development of this exciting project. We believe Lulo is a world class project capable of delivering significant value to our shareholders and our Angolan joint venture partners in the short to medium term."
LONRHO ENQUIRIES
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Lonrho Plc |
+44 (0)20 7016 5105 |
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David Lenigas, Executive Chairman |
+44 (0)7881 825 378 |
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Geoffrey White, Chief Executive Officer |
+44 (0)7717 307 308 |
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Emma de Borchgrave, Executive Director |
+44 (0)7867 785 177 |
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Pelham PR |
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Charles Vivian |
+44 (0) 20 7743 6672 |
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+44 (0) 7977 297903 |
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James MacFarlane |
+44 (0) 20 7743 6375 |
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+44 (0) 7841 672831 |
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Collins Stewart Europe : NOMAD to Lonrho |
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Hugh Field / Ned Fox |
+44 (0) 20 7523 8350 |
NOTES TO EDITORS
About Lulo
The Lulo Project is located on the eastern margin of the Cuango River catchment approximately 650km east of Luanda within the Lunda Norte Province of northeastern Angola.
The Company has signed Joint Venture Agreements with Endiama, the national diamond company of Angola and exclusive concessionary for Angolan diamond mining rights, to develop the highly prospective 3,000km² Lulo Diamond Concession in Angola.
On all kimberlite deposits Lonrho's participating interest will initially be 39% of the joint venture which will decrease to 30% after recoupment of its investment in the Project. On all alluvial deposits Lonrho's participating interest will be 40% in the joint venture. Under the terms of the joint venture agreement with Endiama, Lonrho has paid a cash deposit of US$1.4 million (A$1.54 million) which is refundable after exploration expenditure of an equal amount by Lonrho within nine months after signing the joint venture agreement. Lonrho is also required to fund a work programme for which the first year of exploration expenditure will total US$6 million (A$7 million). Under the terms of the joint venture, the Company will also receive in priority the funds it has expended on exploration from future cash flow from mining operations.
For more information please visit: www.lonrhomining.com
Competent Persons Disclosure
The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves has been prepared by Manfred Marx and Consulting Geophysicist E. O .Kostlin. Mr Marx and Mr Kostlin are consultants to the Company and each has sufficient experience with the relevant style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to be qualified as a Competent Person as defined in the 2004 Edition of the 'Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Each of Mr Marx and Mr Koslin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful business throughout Africa. The Company's shares are traded on the London AIM stock exchange (LONR). Lonrho is strategically focused on the development of business opportunities in infrastructure, transportation, support services, hotels and natural resources. The Company has over 19,000 shareholders and substantial institutional backing to support its mandate to build a profitable business that plays a fundamental role in the development of the African economy.
Since 2006, the Company has invested in or acquired control of:
Hotel Cardoso - www.hotelcardoso.co.mz (retained)
Lonrho Mining - www.lonrhomining.com
Luba Freeport - www.lubafreeport.com
Fly540 - www.fly540.com
Swissta Holdings - www.swissta.com
SA Independent Liner Services - www.saliners.com
Bytes and Pieces www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk
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