Another Massive Diamond Unearthed by Lucapa

Australia-listed diamond miner Lucapa (ASX:LOM) has recovered a 130 carat gem-quality diamond from its Lulo diamond project in Angola.

While 13 may be an unlucky number for some, for the Africa-focused gem miner, it signifies the number of 100 plus carat stones discovered at its Angolan mine since 2015.

The recent recovery is the first large find the company has made since announcing a 90 percent increase in the Lulo’s diamond resource carats to 80,400 carats in situ.

Lulo is located 630 kilometers away from Angola’s capital in a region called the Lunda Norte diamond heartland.

Unlike the kimberlite diamond mining process, where gems are extracted directly from a kimberlite pipe where they have grown over time, alluvial diamonds have been removed from kimberlite through natural processes such as erosion over millions of years.

The displaced gems are then deposited in a new location, usually riverbeds and other areas associated with water resources.

Lulo has proven to be an excellent source of alluvial diamonds, earning roughly US$2,000 per carat for its gem-quality stones. According to the company, out of all alluvial diamond mines worldwide, it has the highest US dollar return per carat.

In Q1 2019, the project produced 31 specials, which are diamonds weighing 10.8 carats or more. Ninety-two diamonds that are 4.8 carats and larger, including the specials, were also recovered during the first three months of the year.

Lucapa’s latest find is the second 100 plus carat diamond from the mine in 2019. In February, a 128 carat white diamond was recovered at Lulo alongside a rare 7.5 carat fancy purple-pink diamond.

“The 130 carat diamond adds to the current inventory of high-value large special run-of-mine diamonds, including top colour white diamonds, weighing 128 carats and 62 carats, as well as a number of fancy pink colored diamonds,” reads a company announcement.

The diamond will be included with other gems mined from Lulo at an upcoming diamond tender.

Shares of Lucapa were up 3.45 percent on Thursday (May 16), trading at AU$0.15.

Image courtesy of Lucapa Diamond.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.