| Wed 5 Sep 2007, 11:45 | | LAF - Lonrho Africa - Nare Diamonds Develops Angol |
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LAF
LOLAF
LAF - Lonrho Africa - Nare Diamonds Develops Angolan Diamond Project with
production planned for 2008
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF & ISIN number: GB0002568813)
("Lonrho Africa" or "the Company")
NARE DIAMONDS DEVELOPS ANGOLAN DIAMOND PROJECT WITH PRODUCTION PLANNED FOR 2008
Lonrho (AIM: LONR), the conglomerate with a diverse portfolio of African
investments, 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 highly
prospective 3,000 km2 diamond concession in Angola ("the Lulo Diamond
Concession").
HIGHLIGHTS
Moblization of mining equipment to mine site and sets up base camp at Lulo
Approval of the proposed work program which, subject to successful exploration,
provides for commencement of trial mining and diamond production at the Lulo
Diamond Concession within 12 months
Acquisition of data in the region surrounding the Lulo Diamond Concession
DEVELOPMENT PROGRAM
The work program which has recently been approved by Endiama (the State owned
diamond mining company of Angola) has been designed to allow for bulk sampling,
followed by trial mining and diamond production at the Lulo Diamond Concession
by 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 km2 to
identify and outline the alluvial terraces and the kimberlite pipes. The
location includes 29 identified kimberlite pipes on the concession. On
completion of the survey, Nare will select the biggest pipes for evaluation
including immediate drilling and bulk sampling.
Nare intends to commence trial mining the alluvial gravels immediately upon
commissioning of the plant, which will commence this year.
`FIRST CLASS` LOCATION
Nare is securing historical data in relation to this and the adjacent projects
prior to commencing development. As announced on 29 August 2007, Lulo is
adjacent to the Petra Diamonds / BHP Billiton owned Alto Cuilo and Luangue
concessions. These concessions are the subject of bulk sampling on the
kimberlite pipes and alluvial gravels. Aero magnetic surveys on their
concession identified in excess of 70 kimberlite pipes, many of which are very
large (
175 hectares). Diamonds recovered from this concession have realized in
excess of US$230 per carat.
The Lulo Project is located on the eastern margin of the Cuango River catchment
within the Lunda Norte Province of northeastern Angola. 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 (see Figure 1). The Cacuilo and Lulo Rivers form
part of the Cuango catchment and the location of the known alluvial gravels is
adjacent to the known kimberlite pipe cluster on the Lulo Diamond Concession
(see Figure 1). Initial geological assessment suggests that some of these
kimberlites are the primary sources of the diamonds in the alluvial gravels on
the concession.
As noted above, Nare has a work program which is designed to bring forward
production of diamonds from its concession as soon as possible.
David Lenigas, Chairman and Chief Executive Officer of Lonrho Plc and Chairman
of Nare, commented:
"The Lulo Project is in the heart of the largest diamond mining region in Angola
and is surrounded by concessions held by some of the world`s leading diamond
mining companies. Developing this potential utilising the highly experienced
Nare management team combined with Lonrho`s reputation in Africa, we look
forward to taking the mine into production in 2008."
ENQUIRIES
Lonrho Plc +44 (0) 20 7016 5105
David Lenigas, Chief Executive +44 (0)7881 825 378
Emma Priestley, Executive Director +44 (0)7867 785 177
Nare Diamonds Limited
Charles Mostert +61 407196129
+27 722869288
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
Alisdair Haythornthwaite +44 (0) 20 7743 6676
+44 (0) 7714 721379
Collins Stewart Europe
Hugh Field +44 (0) 20 7523 8350
Jonny Sloan
NOTES TO EDITORS
About LULO
Nare has signed a joint venture agreement with Endiama, the national diamond
company of Angola and exclusive concessionary for Angolan diamond mining rights,
to develop a highly prospective 3,000 km2 diamond concession in Angola (the Lulo
Diamond Concession). On all kimberlite deposits Nare`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 Nare`s
participating interest will be 40% in the joint venture.
About LONRHO:
Lonrho Plc is an expanding conglomerate that is rapidly growing a successful
business throughout Africa. The Company is listed on the London AIM stock
exchange (LONR). Lonrho is strategically focused on the development of business
opportunities in infrastructure, transportation, support services and natural
resources. The Company has over 20,000 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)
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, Mineral
Resources or Ore Reserves, has been prepared by Manfred Marx. Mr Marx is a
consultant to Nare and 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`. Mr Marx consents to the inclusion in the report of
the matters based on his information in the form and context in which it
appears.
5 September 2007
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 05/09/2007 11:45:13 Produced by the JSE SENS Department.
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