Lucapa Diamond Company has committed to invest US $7 million for capital development and upgrade programme at the Lulo diamond project in Angola over the next few months, the Company said in a statement released yesterday. The commitment comes soon after the execution of documents to incorporate Sociedade Mineira do Lulo (SML), a new alluvial mining company which will spearhead the Lulo project.

SMLwill now hold the Lulo alluvial diamond mining licence which was gazetted in July 2015.

The new company has three partners – Lucapa Diamond Company, Endiama E.P., Angola’s national diamond company and private partner Rosas & Petalas. Lucapa, with a 40% stake will be the operator of the project. Endiama will hold a 32% interest and Rosas 28%, the company said.

The money will be spent on new Caterpillar earth moving equipment, vehicles for both the alluvial diamond mining and kimberlite exploration programs and camp upgrades.

Lucapa also welcomed the preliminary approval received for expatriate work permits for several senior operational roles and specialist drillers for its upcoming activities. It said that it expects to commence drilling at the high-priority L259 kimberlite pipe later in the June quarter.

The company said that the new three-year exploration programme recently approved by the Board off the new company will now be submitted to the Angolan Ministry of Geologgy and Mines.

Pic caption: Recent diamond recoveries from Lulo: a 31 ct Type IIa D Colour and fancy pin and yellow diamond