Lucapa Sells Fourth Diamond Parcel for AU$2.9 Million

Lucapa Diamond Company Ltd. (ASX:LOM) announced that it’s sold a fourth parcel of diamonds from its Angola-based Lulo concession. The parcel went for gross proceeds of AU$2.9 million.

Highlights include:

• Average sale price of A$1,870/carat further demonstrates the exceptional quality and premium value of Lulo diamonds
• Sale also underlines Lucapa’s ability to generate strong and regular cash flows from its alluvial diamond mining operations
• Latest sale brings to A$9.7M the gross proceeds from the sale of Lulo diamonds, at an overall average price of more than A$2,500/carat
• Next sale of Lulo diamonds scheduled for June 2015 to continue cash flow generation
• The latest diamond sale coincides with the recent start of mining at the higher grade BLK_08 area at Lulo

Stephen Wetherall, CEO of Lucapa, commented:

The sale prices we are achieving highlight the financial significance of recovering large special diamonds on a regular basis – as we are doing at Lulo – and gives us further confidence that we are on track to achieve our previously stated objective of becoming cash flow positive by the end of this Quarter.

With the Angolan wet season behind us, we also are now very excited to be moving our alluvial mining operations to high-grade diamond zones such as BLK_08 and BLK_06 & 19 – where we have previously recovered several large special stones during our bulk sampling programs.

We hope to be in a position to offer our next parcel of Lulo diamonds for sale in June 2015, in line with our strategy of generating sustainable long-term cash flows from regular diamond sales.

The exceptional average sale prices we continue to achieve for Lulo diamonds also enhances the potential upside of our kimberlite exploration program, which aims to find the primary hard-rock sources of these rare and valuable alluvial diamonds.

Click here to read the full Lucapa Diamond Company Ltd. (ASX:LOM) press release.