| Wed 30 Jul 2008, 14:21 | | LAF - Lonrho Plc - Government Approval Signals Exploration Green Light For |
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LAF
LOLAF
LAF - Lonrho Plc - Government Approval Signals Exploration Green Light For
World-Class Angolan Diamond Project
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")
GOVERNMENT APPROVAL SIGNALS EXPLORATION GREEN LIGHT FOR WORLD-CLASS ANGOLAN
DIAMOND PROJECT
30 July 2008
Lonrho (AIM: LONR), the conglomerate with a structured portfolio of African
investments, is pleased to announce that Lonrho Mining Ltd (formerly known
as Nare Diamonds), which is owned 24.16% by Lonrho, has made the following
announcement to the Australian Securities Exchange this morning:
HIGHLIGHTS
- Angolan Government approves kimberlite diamond exploration and mining
joint venture, paving the way for kimberlite operations to start at
world class Lulo project
- Independent geophysical consultant has identified 217 magnetic
anomalies, of which an estimated 160 are likely to be kimberlite pipes
- Drilling program to start this year on the 6 largest kimberlite
anomalies
- Bulk sampling program to commence on alluvials, with initial diamond
recoveries expected this year
Australian-based diamond exploration and development company Lonrho Mining
Limited (ASX: LOM) ("Lonrho Mining" or the "Company") today announced it
has received government approval to commence exploration of the kimberlite
targets at the Lulo Diamond Concession in Angola (Figure 1).
The Company has now received all the necessary approvals to commence
exploration and development of the alluvial and kimberlite deposits at
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 believe this area 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.
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. The largest alluvial
diamond mine in Angola is Chitotolo in the Lunda Norte province, which
produces approximately 150,000 carats per annum.
This development follows the recently completed aeromagnetic and
radiometric survey which 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
(Figures 2, 3 & 4).
Lonrho Mining`s consultant geologist Manfred Marx said:
"To date, the results from the Lulo survey are the most encouraging that I
have witnessed since the discovery of the Orapa Mine in Botswana in 1967."
Commenting on the approvals, Lonrho Mining`s Chief Executive Officer
Charles Mostert said:
"This is a significant milestone for the Company and its shareholders as we
now have full government approvals to commence the exploration and
development of this exciting project. We believe Lulo is a world class
project capable of delivering significant value to our shareholders and our
Angolan joint venture partners in the short to medium term."
LONRHO ENQUIRIES
Lonrho Plc +44 (0)20 7016 5105
David Lenigas, Executive Chairman +44 (0)7881 825 378
Geoffrey White, Chief Executive +44 (0)7717 307 308
Officer
Emma de Borchgrave, Executive +44 (0)7867 785 177
Director
Pelham PR
Charles Vivian +44 (0) 20 7743 6672
+44 (0) 7977 297903
James MacFarlane +44 (0) 20 7743 6375
+44 (0) 7841 672831
Collins Stewart Europe : NOMAD to
Lonrho
Hugh Field / Ned Fox +44 (0) 20 75238350
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 3,000kmSquared Lulo
Diamond Concession in Angola.
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 more information please visit: www.lonrhomining.com
Competent Persons Disclosure
The information in this report that relates to Exploration Results, Mineral
Resources or Ore Reserves has been prepared by Manfred Marx and Consulting
Geophysicist E. O .Kostlin. Mr Marx and Mr Kostlin are consultants to the
Company and each 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`. Each of Mr Marx and Mr Koslin
consents to the inclusion in the report of the matters based on his
information in the form and context in which it appears.
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.
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 www.bytespieces.com
Kwikbuild - www.e-kwikbuild.co.za
LonZim - www.lonzim.co.uk
South African sponsor to Lonrho Africa Plc
Java Capital (Proprietary) Limited
Date: 30/07/2008 14:21:02 Produced by the JSE SENS Department.
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