30th Apr 2008 07:31
Lonrho PLC30 April 2008 30 April 2008 Lonrho Plc ("Lonrho") LONRHO MINING IDENTIFIES AN ESTIMATED 160 KIMBERLITE PIPES FROM AIRBORNE SURVEY IN ANGOLA Lonrho (AIM: LONR), the conglomerate with a structured portfolio of Africaninvestments, is pleased to announce that Lonrho Mining Ltd (formerly known asNare Diamonds) owned 23.01% by Lonrho, has made the following announcement tothe Australian Securities Exchange this morning: "HIGHLIGHTS • Lonrho Mining has completed a 1,000km2 airborne magnetic and radiometric survey over 1,000km(2) target area for the Lulo Diamond Concession with exceptionally encouraging results • Interpretation by Lonrho Mining's independent geophysical consultant has identified 217 magnetic anomalies of which an estimated 160 are likely to be kimberlite pipes • The diamond potential of this kimberlite cluster is very high given the activity of an estimated 6,000 artisanal diamond miners within the Cacuilo River terraces • A drilling programme will commence this year on the 6 largest anomalies to confirm the presence of kimberlites • A bulk sampling programme will commence this quarter on the alluvials following completion of base camp construction Australian based diamond exploration and development company Lonrho MiningLimited (ASX: LOM) ("Lonrho Mining" or the "Company"), today announced theidentification of 217 magnetic anomalies from a helicopter borne aeromagneticand radiometric survey conducted at the Lulo Diamond Concession in Angola (seeFigure 1, Location Map). The data from the survey has been processed by Fugro Airborne Surveys (Pty) Ltdand analysed by Lonrho's independent geophysical consultant Mr E O Kostlin. Hehas identified a large cluster consisting of 217 magnetic anomalies which hebelieves are in all likelihood due to kimberlites or kimberlite magma blows.This cluster is located within the diamond bearing Cacuilo River catchment areaon the Lulo concession. Lonrho Mining's consultant geologist Manfred Marx believes that the results todate from the Lulo survey are the most encouraging that he has witnessed sincethe discovery of the Orapa Mine in Botswana in 1967. Lulo is located in north eastern Angola, in an area which many experts believewill become a prolific region for the production of diamonds. The Catoca mine,which is approximately 90 kilometers from Lulo, produced approximately 7 millioncarats in 2007. Lulo is also adjacent to the Alto Cuilo concession which is ajoint venture between Petra Diamonds and BHP Billiton where 77 kimberlite pipeshave already been discovered. Aeromagnetic Data In February this year, a low level MIDAS helicopter survey was completed over1,000km(2) covering the diamond bearing upper Cacuilo and Lulo Rivers. The aimof the survey was to assist in the discovery of kimberlite deposits within thesurveyed area at Lulo. The processing and analysis of the data acquired from the survey is now completeand has resulted in the identification of an extensive cluster of at least 217magnetic anomalies (see Figure 2 and Figure 3). Other diamond operators in this region (eg. Petra Diamonds Ltd, BHP Billiton)have reported that up to 75% of the targeted magnetic anomalies drilled on theirneighbouring Alto Cuilo concession are kimberlite pipes. Based on thiscomparison, approximately 160 of the anomalies on the Lulo concessions arelikely to be kimberlites. Significantly, in relation to Lulo, the terrace gravels on the Cacuilo Riverhave exceptionally high kimberlitic indicator mineral concentrations (see Figure4) in addition to the presence of artisanal diggings, especially in the lowerextent of the river system. Furthermore, historical records confirm theexistence of 29 kimberlite pipes that are known to be within the concessionarea. Kimberlite Work Schedule The largest pipes within a kimberlite/lamproite province historically have thehighest grades. This approach has been successfully applied by BHP Billiton andPetra Diamonds at the adjacent Alto Cuilo project which has identifiedapproximately 77 kimberlites from 99 magnetic anomalies. The Company's consultants have selected 6 of the largest targets, identifiedfrom the aeromagnetic survey and an aerial-photo study which have minimumestimated surface areas of between 5 and 20 hectares. The timing of thisdrilling programme is dependent on final government approvals and the usuallogistical challenges, however, it is expected that the first phase testing ofthe selected 6 kimberlites is scheduled for completion this year. Roads will,as a priority, be constructed to gain access to these 6 priority targets. Once a kimberlite is identified, bulk samples will be excavated from each pipeand treated at the Cacuilo River diamond recovery plant. If the surfacedefinition of the target is unclear due to sand cover, then percussion drillingwill be undertaken as part of the assessment. The pipe with the highestindicated grade will then be evaluated for its economic potential. Alluvial Diamond Work Schedule Alluvial diamond grades of between 9 and 20 carats/100tonne were recorded duringcolonial times in some of the Cacuilo River tributaries (Canguige and CamacondeRiver), directly draining some of the large photo-feature/magnetic anomalies.Further evidence of the kimberlites diamond potential is the presence of anestimated 6,000 artisanal miners in the Cacuilo River valley. Following the recent commencement of the Cacuilo River base camp construction,the initial bulk sampling stage will focus on the Cacuilo River terraces andflood-plain gravels. The first 6,000 tonnes of gravel will be treated by a 16foot rotary pan. The aim of this first phase is to determine the bestmetallurgical practices applicable in the treatment of the Cacuilo gravels, aswell as to gain a basic understanding of the diamond grades and values that canbe expected in these gravel units. Given a favourable outcome, a greatlyenlarged bulk sampling programme will be initiated. The gravel deposits will be mapped and surveyed along 1,000m spaced trenchesexcavated at right angles to the flow of the ancient (and present) river. Theinitial 6 x 1,000 tonne bulk samples will then be carefully selected to gain arepresentative sample of the terrace gravels. This initial phase is scheduled for completion by mid 2008. Commenting on the survey results, Chief Executive Officer of Lonrho Mining,Charles Mostert stated: "We are delighted with these results which confirms our belief that Lulo has thepotential to be a world class project. The survey results have exceeded ourexpectations and demonstrates the high diamond prospectivity at Lulo. With thesurvey completed we look forward to finalising outstanding approvals and willthen commence a drilling program as part of developing this exciting project." 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 29 kimberlites are knownwithin the concession and extensive diamond bearing (garimpeiro activity)alluvials occur along the Cacuilo and Lulo Rivers. 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 Mining's participating interest in the kimberlite depositswill initially be 39% of the joint venture which will decrease to 30% afterrecoupment of its investment in the Project. On all alluvial deposits LonrhoMining's participating interest will be 40% in the joint venture. Under the terms of the Joint Venture with Endiama, Lonrho Mining has paid adeposit of US$1.4 million in cash which is refundable after explorationexpenditure of twice the amount by the Company within nine months after signingof the Joint Venture agreement. Lonrho Mining is also required to fund a workprogramme for which the first year of exploration expenditure will total US$3,5million. Lonrho Mining will receive in priority the funds it has expended onexploration from future mining cash flow. The Company has received all necessary approvals to commence exploration anddevelopment of the alluvial deposits at Lulo and is awaiting final gazettalapproval in relation to the kimberlite deposits." For more information please visit: www.lonrhomining.com Competent Persons Disclosure The information in this report that relates to Exploration Results, MineralResources or Ore Reserves has been prepared by Manfred Marx and ConsultingGeophysicist E. O .Kostlin. Mr Marx and Mr Kostlin are consultants to theCompany and each 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'. Each of Mr Marx and Mr Koslin consents to theinclusion in the report of the matters based on his information in the form andcontext in which it appears. Figure 1 - Lulo Diamond Concession Figure 2 - Aeromagnetic total magnetic intensity colour contours Figure 3 - Vertical gradient magnetic colour contours Figure 4. - Digital terrain image showing Cacuilo River drainage pattern Paste the following link into your web browser to download the PDF document related to this announcement: http://www.rns-pdf.londonstockexchange.com/rns/4081t_-2008-4-30.pdf LONRHO ENQUIRIES Lonrho Plc +44 (0)20 7016 5105David Lenigas, Executive Chairman +44 (0)7881 825 378Geoffrey White, Chief Executive Officer +44 (0)7717 307 308Emma de Borchgrave, Executive Director +44 (0)7867 785 177 Pelham PRCharles Vivian +44 (0) 20 7743 6672 +44 (0) 7977 297903James MacFarlane +44 (0) 20 7743 6375 +44 (0) 7841 672831 Collins Stewart Europe : NOMAD to LonrhoHugh Field / Simon Alston +44 (0) 20 7523 8350 NOTES TO EDITORS About LONRHO: Lonrho Plc is an expanding conglomerate that is rapidly growing a successfulbusiness throughout Africa. The Company's shares are traded on the London AIMstock exchange (LONR). Lonrho is strategically focused on the development ofbusiness opportunities in infrastructure, transportation, support services andnatural resources. 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) 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 Kwikbuild - www.e-kwikbuild.com LonZim - www.lonzim.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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