30th Jan 2008 07:01
Lonrho PLC30 January 2008 ASX and Media Release30 January 2008 LONRHO PLC LONRHO MINING FINALISES AIRBORNE SURVEY AND RECEIVES GOVERNMENT APPROVAL TO COMMENCE ALLUVIAL OPERATIONS AT LULO DIAMOND CONCESSION, ANGOLA HIGHLIGHTS • Lonrho Mining has completed 60% of the airborne magnetic and radiometric survey over 1000km(2) target area for the Lulo Diamond Concession • Preliminary data is of exceptionally high quality and the geological structures appear very well defined • Construction of the Cacuilo River base camp has commenced and due for completion in March 2008 • The Angolan Government has gazetted the alluvial diamond exploration and mining joint venture allowing for intended commencement of alluvial operations in April 2008 Australian based diamond exploration and development company Lonrho MiningLimited (ASX: LOM) ("Lonrho Mining" or the "Company"), is pleased to provide thefollowing key updates in relation to the commencement of operations at the LuloDiamond Concession in Angola (see Figure 1, Location Map). Airborne Magnetic and Radiometric Survey Fugro expects to complete the company's helicopter borne aeromagnetic andradiometric survey (which is over 1000km(2)) subject to weather conditions, by 7February 2008. The preliminary results are anticipated by mid-February with afinal interpretation report available by the end of February 2008. The survey is targeting kimberlite pipes within the survey area, of which 27 areknown to occur within the interfluve area between the Lulo and Cacuilo Rivers.On completion of the survey and the interpretation of the data, the Company willselect the pipes with the largest surface area for evaluation which will includedrilling followed by bulk sampling. The survey may also provide valuableinformation on the morphology and extent of the terrace gravels at the project. Lonrho Mining's technical team is very pleased with data received to date whichis of exceptionally high quality. Significantly, the preliminary resultsdemonstrate that the geological structures are very well defined. Camp Construction at Cacuilo River Following a site visit last week by the company, preparations for establishing adiamond recovery plant on the Cacuilo River is now well underway. Technical staff have been employed to manage the construction of the CacuiloRiver base camp and to procure the earth moving equipment as well as the diamondrecovery units in readiness for commencement of operations. Initially, the coreof the recovery section will consist of two 16 feet rotary pans and an X-rayflowsort machine for final diamond recovery. The alluvial evaluation manager,the construction foreman and the security officer will be Angolan expatriatesrecruited in South Africa, while the majority of the field and Luanda officestaff will be Angolans. Camp construction is scheduled for completion by mid March 2008 and theconstruction of the recovery section by mid April 2008, depending on numerouslogistical considerations. During this phase of the work, a geological mapping survey of the Cacuilo Riverpicro-ilmenite rich terrace gravels will be conducted. The most suitable sitefor river diversion mining will also be selected. Excavation of the 6,000 tonnebulk sample will commence as soon as the geological mapping has been completed,by end of March 2008. Gazettal of Alluvial Diamond Exploration and Mining Joint Venture The first Board Meeting of the Lulo Joint Venture was held at the Endiama officebuilding in Luanda on 17 January 2008. The Board of Directors consists of: Chairman Dr. Tiago Domingos Dias (Endiama Administrator)Director Mr. Charles Mostert (Lonrho Mining)Director Dr Celso Rosas (Rosas e Petalas) The Executive Administration Committee was also appointed consisting of: Director General Mr. Charles Mostert (Lonrho Mining)Ass. Director General Dr Joaquina Costa (Endiama appointee)Mine Geologist Mr. Manfred Marx (Lonrho Mining)Planning and Finance Mr. Berend van Deventer (Lonrho Mining)Supply and Logistics Rosas e Petalas appointeeHuman Resources/ Security Endiama appointee Lonrho Mining is particularly pleased to welcome Dr Joaquina Costa to the teamwho is a geologist with extensive Angolan diamond mining experience. She hasserved on the staff of several foreign mining companies operating in Angola,including Trans Hex and ITM. Commenting on the progress at Lulo, Chief Executive Officer of Lonrho Mining,Charles Mostert stated: "We are delighted that the survey over the Lulo Diamond Concession isprogressing well and remain very confident that it will identify many kimberlitepipes within the survey area." "It is also very pleasing to have received government approval to commence thealluvial operations at Lulo. We intend to commence bulk sampling in April 2008to test the significant alluvial potential along the diamond bearing gravelswithin the lower Cacuilo River. "We also welcome Dr Costa to the Executive Administration Committee of the LuloJoint Venture. Dr Costa is a geologist with extensive Angolan diamond miningexperience who will add significant local and technical insight in bringing theLulo Diamond Concession into early production." For further information please contact: John WilliamsProfessional Public RelationsTel: 0412 422 636Email: [email protected] In South Africa: In Australia:Charles Mostert Will BurburyLonrho Mining Limited Lonrho Mining LimitedTel: +2712 665 1437 Tel: +61 8 9481 3044Email: [email protected] Email: [email protected] Lonrho PlcDavid Lenigas, Geoffrey White or Emma PriestleyTel: +44 (0) 207 016 5100Website: www.lonrho.com NOTES TO EDITORS About Lulo The Lulo Diamond Concession is located in the Cuango River Basin within theLunda Norte Province of north-eastern Angola approximately 630km from thecapital city of Luanda. This concession is Lonrho Mining's flagship explorationproject based on the high diamond potential. Some 27 kimberlites are knownwithin the concession and extensive diamond bearing (garimpeiro activity)alluvials occur along the Cacuilo and Lulo Rivers. The Lulo Diamond Concession is adjacent to the BHP Billiton / Petra Diamondsowned Alto Cuilo Diamond Project. Earlier this year Lonrho Mining announced that it had signed a Joint VentureAgreement with Endiama, the national diamond company of Angola and exclusiveconcessionary for Angolan diamond mining rights. Within the 3,000km2 LuloConcession, Lonrho's participating interest will initially be 39% of the jointventure which will decrease to 30% after recoupment of its investment in theProject. On all alluvial deposits Lonrho's participating interest will be 40% inthe joint venture. Under the terms of the Joint Venture with Endiama, Lonrho has paid a deposit ofUS$1.4 million in cash which is refundable after exploration expenditure of anequal amount by the Company within nine months after signing of the JointVenture agreement. Lonrho is also required to fund a work programme for whichthe first year of exploration expenditure will total US$6 million. Lonrho willreceive in priority the funds it has expended on exploration from future miningcash flow. For more information please visit: www.lonrhomining.com About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company is listed on the London AIM stockexchange (LONR). Lonrho is strategically focused on the development of businessopportunities in infrastructure, transportation, support services and naturalresources. Lonrho holds at 19.54% stake in Lonrho Mining which is part ofLonrho's natural resources division. The Company has over 20,000 shareholders and substantial institutional backingto support its mandate to build a profitable business that plays a fundamentalrole in the development of the African economy. Since 2006, the Company has invested in or acquired control of: • Hotel Cardoso - www.hotelcardoso.co.mz • Lonrho Mining - www.lonrhomining.com • Luba Freeport - www.lubafreeport.com • Fly540 - www.fly540.com • Norse Air - www.norseair.co.za • Swissta Holdings - www.swissta.com • SA Independent Liner Services - www.saliners.com • Bytes and Pieces Figure 1: Lulo Diamond Concession http://www.rns-pdf.londonstockexchange.com/rns/8203m_-2008-1-29.pdf Competent Persons Disclosure The information in this report that relates to Exploration Results, MineralResources or Ore Reserves has been prepared by Manfred Marx. Mr Marx is aconsultant to the Company and has sufficient experience with the relevant styleof mineralisation and type of deposit under consideration and to the activitywhich he is undertaking to be qualified as a Competent Person as defined in the2004 Edition of the 'Australian Code for Reporting of Exploration Results,Mineral Resources and Ore Reserves'. Mr Marx consents to the inclusion in thereport of the matters based on his information in the form and context in whichit appears. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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