4th Sep 2007 10:55
Lonrho PLC04 September 2007 4 September 2007 LONRHO Plc ("Lonrho" or the "Company") NARE DIAMONDS DEVELOPS ANGOLAN DIAMOND PROJECT WITH PRODUCTION PLANNED FOR 2008 Lonrho (AIM: LONR), the conglomerate with a diverse portfolio of Africaninvestments, is pleased to provide an update on Nare Diamonds Limited ("Nare"),the Australian listed African diamond mining company in which it holds a 21.94%stake. Nare is to commence development of its recently acquired highlyprospective 3,000 km(2) diamond concession in Angola ("the Lulo DiamondConcession"). Highlights • Moblization of mining equipment to mine site and sets up base camp atLulo • Approval of the proposed work program which, subject to successfulexploration, provides for commencement of trial mining and diamond production atthe Lulo Diamond Concession within 12 months • Acquisition of data in the region surrounding the Lulo DiamondConcession Development Program The work program which has recently been approved by Endiama (the State owneddiamond mining company of Angola) has been designed to allow for bulk sampling,followed by trial mining and diamond production at the Lulo Diamond Concessionby the end of 2008. Nare intends to set up a base camp at the Lulo Diamond Concession this month.The immediate focus is to conduct an aero magnetic survey over 1,000 km(2) toidentify and outline the alluvial terraces and the kimberlite pipes. Thelocation includes 29 identified kimberlite pipes on the concession. Oncompletion of the survey, Nare will select the biggest pipes for evaluationincluding immediate drilling and bulk sampling. Nare intends to commence trial mining the alluvial gravels immediately uponcommissioning of the plant, which will commence this year. 'First class' location Nare is securing historical data in relation to this and the adjacent projectsprior to commencing development. As announced on 29 August 2007, Lulo isadjacent to the Petra Diamonds / BHP Billiton owned Alto Cuilo and Luangueconcessions. These concessions are the subject of bulk sampling on thekimberlite pipes and alluvial gravels. Aero magnetic surveys on theirconcession identified in excess of 70 kimberlite pipes, many of which are verylarge (175 hectares). Diamonds recovered from this concession have realized inexcess of US$230 per carat. The Lulo Project is located on the eastern margin of the Cuango River catchmentwithin the Lunda Norte Province of northeastern Angola. The Cuango Riveralluvial diamond fields are the largest in Angola. The operators of theseconcessions are amongst the leading diamond miners in the world, including DeBeers, Trans Hex and Alrosa (see Figure 1). The Cacuilo and Lulo Rivers formpart of the Cuango catchment and the location of the known alluvial gravels isadjacent to the known kimberlite pipe cluster on the Lulo Diamond Concession(see Figure 1). Initial geological assessment suggests that some of thesekimberlites are the primary sources of the diamonds in the alluvial gravels onthe concession. As noted above, Nare has a work program which is designed to bring forwardproduction of diamonds from its concession as soon as possible. A map of the Lulo Diamond Concession can be accessed below. David Lenigas, Chairman and Chief Executive Officer of Lonrho Plc and Chairmanof Nare, commented: "The Lulo Project is in the heart of the largest diamond mining region in Angolaand is surrounded by concessions held by some of the world's leading diamondmining companies. Developing this potential utilising the highly experiencedNare management team combined with Lonrho's reputation in Africa, we lookforward to taking the mine into production in 2008." ENQUIRIES Lonrho Plc +44 (0) 20 7016 5105David Lenigas, Chief Executive +44 (0)7881 825 378Emma Priestley, Executive Director +44 (0)7867 785 177 Nare Diamonds LimitedCharles Mostert +61 407196129 +27 722869288 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903Alisdair Haythornthwaite +44 (0) 20 7743 6676 +44 (0) 7714 721379 Collins Stewart EuropeHugh Field +44 (0) 20 7523 8350Jonny Sloan NOTES TO EDITORS About LULO: Nare has signed a joint venture agreement with Endiama, the national diamondcompany of Angola and exclusive concessionary for Angolan diamond mining rights,to develop a highly prospective 3,000 km(2) diamond concession in Angola (theLulo Diamond Concession). On all kimberlite deposits Nare's participatinginterest will initially be 39% of the joint venture which will decrease to 30%after recoupment of its investment in the Project. On all alluvial depositsNare's participating interest will be 40% in the joint venture. Please see attached link to access the Lulo Diamond Concession location map. http://www.rns-pdf.londonstockexchange.com/rns/2471d_-2007-9-4.pdf 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. The Company has over 20,000 shareholders and substantialinstitutional backing to support its mandate to build a profitable business thatplays 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) • Nare Diamonds - www.narediamonds.com • Brinkley Mining - www.brinkley-mining.com • Luba Freeport - www.lubafreeport.com • Fly540 - www.fly540.com • Norse Air - www.norseair.co.za • Swissta Holdings - www.swissta.com • Countermine - www.countermine.com • SA Independent Liner Services 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 Nare and has sufficient experience with the relevant style ofmineralisation and type of deposit under consideration and to the activity whichhe is undertaking to be qualified as a Competent Person as defined in the 2004Edition of the 'Australian Code for Reporting of Exploration Results, MineralResources and Ore Reserves'. Mr Marx consents to the inclusion in the report ofthe matters based on his information in the form and context in which itappears. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Lonrho