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30 Jul 2008 09:57
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30 JulyΒ 2008
Lonrho Plc
("Lonrho")
LONRHO MININGΒ
GOVERNMENT APPROVAL SIGNALSΒ EXPLORATION GREENΒ
LIGHT FOR WORLD-CLASS ANGOLAN DIAMOND PROJECT
Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African investments, is pleased toΒ announceΒ that Lonrho Mining Ltd (formerly known as Nare Diamonds), which isΒ owned 24.16% by Lonrho, has made the following announcement to the AustralianΒ Securities Exchange this morning:
HIGHLIGHTS
Angolan GovernmentΒ approvesΒ kimberliteΒ diamond exploration and mining joint venture, paving the way forΒ kimberliteΒ operationsΒ to startΒ at world class Lulo project
IndependentΒ geophysicalΒ consultantΒ hasΒ identifiedΒ 217 magnetic anomalies,Β of which an estimatedΒ 160Β are likely to be kimberliteΒ pipesΒ
Drilling programΒ toΒ startΒ this year on the 6 largestΒ kimberlite anomalies
Bulk sampling programΒ toΒ commenceΒ on alluvials,Β withΒ initialΒ diamond recoveriesΒ expectedΒ this year
Australian-based diamond exploration and development company Lonrho Mining Limited (ASX: LOM) ("Lonrho Mining" or the "Company")Β today announcedΒ it has received government approval to commence exploration of the kimberliteΒ targetsΒ at the Lulo Diamond Concession in AngolaΒ (Figure 1).
The Company has now receivedΒ all the necessaryΒ approvals to commence exploration and development of the alluvial and kimberlite deposits atΒ 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 believeΒ this areaΒ 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.
TheΒ CuangoΒ RiverΒ alluvial diamond fields are the largest inΒ 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 inΒ AngolaΒ is Chitotolo in the Lunda Norte province, which produces approximately 150,000 carats per annum.Β
This development follows the recently completed aeromagnetic and radiometricΒ surveyΒ whichΒ 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 (FiguresΒ 2,Β 3Β & 4).
Β Β Lonrho Mining's consultant geologist Manfred MarxΒ said:Β
"To date,Β the results from the Lulo survey are the most encouraging thatΒ I haveΒ witnessed since the discovery of theΒ Orapa Mine in Botswana in 1967."
Commenting on the approvals,Β Lonrho Mining's Chief Executive OfficerΒ Charles MostertΒ said:
"This is a significant milestoneΒ for the Company and its shareholdersΒ as we now haveΒ full government approvals to commenceΒ theΒ exploration and developmentΒ of this excitingΒ project. We believeΒ Lulo is a world class project capableΒ of delivering significant value to our shareholders and our Angolan joint venture partnersΒ in the short to medium term."Β Β
LONRHO ENQUIRIES
|
LonrhoΒ Plc |
+44Β (0)20Β 7016Β 5105 |
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DavidΒ Lenigas,Β Executive Chairman |
+44Β (0)7881Β 825Β 378 |
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Geoffrey White, Chief Executive Officer |
+44 (0)7717 307 308 |
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EmmaΒ de Borchgrave,Β ExecutiveΒ Director |
+44Β (0)7867Β 785Β 177 |
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Β |
Β |
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Pelham PR |
Β |
|
CharlesΒ Vivian |
+44Β (0)Β 20Β 7743Β 6672 |
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Β |
+44Β (0)Β 7977Β 297903 |
|
James MacFarlane |
+44Β (0)Β 20Β 7743Β 6375 |
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Β |
+44Β (0)Β 7841 672831 |
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Β |
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Collins Stewart Europe : NOMAD to Lonrho |
Β |
|
Hugh Field /Β Ned FoxΒ |
+44Β (0)Β 20Β 7523Β 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 3,000kmΒ²Β Lulo Diamond Concession in Angola.Β
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 moreΒ information please visit:Β www.lonrhomining.comΒ
Competent Persons Disclosure
TheΒ information in this report that relates to Exploration Results,Β Mineral Resources or Ore Reserves has been prepared byΒ Manfred MarxΒ andΒ Consulting Geophysicist E. O .Kostlin.Β Β Mr MarxΒ and Mr Kostlin areΒ consultantsΒ to the Company andΒ eachΒ hasΒ 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 ofΒ Mr MarxΒ and Mr KoslinΒ consents to the inclusion in the report of the matters based on hisΒ information in the form and context in which it appears.Β
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.Β
Β
Since 2006, the Company has invested in or acquired control of:Β
Hotel Cardoso -Β www.hotelcardoso.co.mzΒ Β (retained)
Lonrho Mining -Β www.lonrhomining.comΒ
Luba Freeport -Β www.lubafreeport.comΒ
Fly540 -Β www.fly540.comΒ
Swissta Holdings -Β www.swissta.comΒ
SA Independent Liner Services -Β www.saliners.comΒ
Bytes and PiecesΒ www.bytespieces.comΒ
Kwikbuild -Β www.e-kwikbuild.co.zaΒ
LonZim -Β www.lonzim.co.ukΒ
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