Lucapa Faces Key Tests as Lulo JV Contract Nears Finalisation
Lucapa Diamond Company advances its position in the Lulo Kimberlite Joint Venture, increasing its stake to 51% while accelerating bulk sampling efforts to pinpoint diamond-rich kimberlite targets.
- Lucapa's interest in Lulo Kimberlite JV set to rise from 39% to 51%
- MIC Committee progressing finalisation of new Minerals Investment Contract
- Sample processing accelerated after Q4 transport delays
- Upcoming expert review to refine kimberlite exploration targets
- No diamonds recovered from recent L188 samples, further sampling planned
Strategic Stake Increase in Lulo Kimberlite JV
Lucapa Diamond Company Limited (ASX:LOM) has reported meaningful progress in its Lulo Kimberlite Joint Venture in Angola, with negotiations underway to increase its ownership from 39% to a majority 51%. This proposed shift, currently being finalised by the Minerals Investment Contract (MIC) Committee, marks a pivotal step in Lucapa’s ambition to secure greater control over the exploration and development of the kimberlite source at Lulo.
The MIC Committee convened in Luanda recently and is scheduled for a follow-up meeting within the next fortnight to iron out remaining details before the agreement is signed off by the Angolan Ministry and officially gazetted. This development builds on prior announcements and signals Lucapa’s growing confidence in the project’s potential.
Accelerated Kimberlite Bulk Sampling Program
Following transport-related delays in the fourth quarter of 2024, Lucapa has accelerated its processing of kimberlite bulk samples in early 2025. The company is currently stockpiling samples from the L130/01 pipe and preparing to process additional samples from L349, L137, and L130. Despite the recent processing of two samples from L188 yielding no diamonds, the bulk sampling program continues to target multiple kimberlite pipes with promising indicator minerals such as garnets, chrome diopsides, and ilmenite.
Lucapa’s geologists plan to engage an internationally renowned kimberlite exploration expert in the first quarter of 2025 to conduct a comprehensive data review. This expert assessment aims to refine the prioritisation of exploration targets and enhance the efficiency of the sampling program, potentially accelerating the discovery of economically viable kimberlite bodies.
Technical and Operational Context
The company faced logistical challenges during the wet season and technical issues with Tatra trucks used for sample transport, which delayed movement of excavated kimberlite to the processing plant. These issues have now been resolved, allowing for continuous sample transport and reducing weather-related disruptions.
Lucapa’s exploration methodology involves bulk sampling pits excavated into clean kimberlite material, with samples processed through a dedicated Kimberlite Bulk Sample Plant (KBSP). The plant employs dense media separation and X-ray sorting technologies, followed by hand sorting to recover diamonds. The program is designed to test the presence and economic potential of diamonds within the kimberlite pipes rather than to provide representative grade estimates at this stage.
Looking Ahead
With the MIC nearing finalisation and the bulk sampling program gaining momentum, Lucapa is positioning itself to unlock the primary diamond source at Lulo. The increased stake in the joint venture not only enhances Lucapa’s influence over project decisions but also aligns with its broader strategy to expand its footprint in Angola’s prolific diamond province.
Investors will be watching closely for the outcomes of the upcoming MIC Committee meetings and the results of the refined sampling program, which could provide clearer signals on the commercial viability of the kimberlite deposits.
Bottom Line?
Lucapa’s growing stake and renewed sampling efforts set the stage for a critical phase in unlocking Lulo’s kimberlite potential.
Questions in the middle?
- Will the MIC Committee successfully finalise the new contract and secure government approval?
- How will the expert review reshape Lucapa’s kimberlite exploration priorities?
- What implications do the zero-diamond results from L188 samples have for future sampling targets?
