| Wed 30 Jan 2008, 15:03 | | LAF - Lonrho Mining Finalises Airborne Survey And Receives Government |
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LAF
LOLAF
LAF - Lonrho Mining Finalises Airborne Survey And Receives Government
Approval To Commence Alluvial Operations At Lulo Diamond Concession, Angola
Lonrho Plc
(Formerly Lonrho Africa Plc)
(Incorporated and registered in England and Wales)
(Registration number 2805337)
(Share code: LAF; ISIN number: GB0002568813)
("Lonrho" or "the Company")
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 1000km2 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 Mining
Limited (ASX: LOM) ("Lonrho Mining" or the "Company"), is pleased to provide the
following key updates in relation to the commencement of operations at the Lulo
Diamond Concession in Angola (see Figure 1, Location Map).
Airborne Magnetic and Radiometric Survey
Fugro expects to complete the company`s helicopter borne aeromagnetic and
radiometric survey (which is over 1000km2) subject to weather conditions, by 7
February 2008. The preliminary results are anticipated by mid-February with a
final interpretation report available by the end of February 2008.
The survey is targeting kimberlite pipes within the survey area, of which 27 are
known 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 will
select the pipes with the largest surface area for evaluation which will include
drilling followed by bulk sampling. The survey may also provide valuable
information 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 which
is of exceptionally high quality. Significantly, the preliminary results
demonstrate 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 a
diamond recovery plant on the Cacuilo River is now well underway.
Technical staff have been employed to manage the construction of the Cacuilo
River base camp and to procure the earth moving equipment as well as the diamond
recovery units in readiness for commencement of operations. Initially, the core
of the recovery section will consist of two 16 feet rotary pans and an X-ray
flowsort machine for final diamond recovery. The alluvial evaluation manager,
the construction foreman and the security officer will be Angolan expatriates
recruited in South Africa, while the majority of the field and Luanda office
staff will be Angolans.
Camp construction is scheduled for completion by mid March 2008 and the
construction of the recovery section by mid April 2008, depending on numerous
logistical considerations.
During this phase of the work, a geological mapping survey of the Cacuilo River
picro-ilmenite rich terrace gravels will be conducted. The most suitable site
for river diversion mining will also be selected. Excavation of the 6,000 tonne
bulk 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 office
building 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 Dr Joaquina Costa (Endiama appointee)
General
Mine Geologist Mr. Manfred Marx (Lonrho Mining)
Planning and Mr. Berend van Deventer (Lonrho Mining)
Finance
Supply and Rosas e Petalas appointee
Logistics
Human Resources/ Endiama appointee
Security
Lonrho Mining is particularly pleased to welcome Dr Joaquina Costa to the team
who is a geologist with extensive Angolan diamond mining experience. She has
served 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 is
progressing well and remain very confident that it will identify many kimberlite
pipes within the survey area."
"It is also very pleasing to have received government approval to commence the
alluvial operations at Lulo. We intend to commence bulk sampling in April 2008
to test the significant alluvial potential along the diamond bearing gravels
within the lower Cacuilo River.
"We also welcome Dr Costa to the Executive Administration Committee of the Lulo
Joint Venture. Dr Costa is a geologist with extensive Angolan diamond mining
experience who will add significant local and technical insight in bringing the
Lulo Diamond Concession into early production."
For further information please contact:
John Williams
Professional Public Relations
Tel: 0412 422 636
Email: jwilliams@pprwa.com.au
In South Africa: In Australia:
Charles Mostert Will Burbury
Lonrho Mining Limited Lonrho Mining Limited
Tel: +2712 665 1437 Tel: +61 8 9481 3044
Email: cmostert@lonrhomining.net Email:
wburbury@lonrhomining.com
Lonrho Plc
David Lenigas, Geoffrey White or
Emma Priestley
Tel: +44 (0) 207 016 5100
Website: www.lonrho.com
NOTES TO EDITORS
About Lulo
The Lulo Diamond Concession is located in the Cuango River Basin within the
Lunda Norte Province of north-eastern Angola approximately 630km from the
capital city of Luanda. This concession is Lonrho Mining`s flagship exploration
project based on the high diamond potential. Some 27 kimberlites are known
within 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 Diamonds
owned Alto Cuilo Diamond Project.
Earlier this year Lonrho Mining announced that it had signed a Joint Venture
Agreement with Endiama, the national diamond company of Angola and exclusive
concessionary for Angolan diamond mining rights. Within the 3,000km2 Lulo
Concession, 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 with Endiama, Lonrho has paid a deposit of
US$1.4 million in cash which is refundable after exploration expenditure of an
equal amount by the Company within nine months after signing of 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. Lonrho will
receive in priority the funds it has expended on exploration from future mining
cash flow.
For more information please visit: www.lonrhomining.com
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. Lonrho holds at 19.54% stake in Lonrho Mining which is part of
Lonrho`s natural resources division.
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
- 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
30 January 2008
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 30/01/2008 15:03:23 Produced by the JSE SENS Department.
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