Shares in the Lucapa Diamond Company, a tiny mining company headquartered in Perth, have had a stellar rise over the last month.
They’ve more than tripled from a low of 15 cents each to a high of 55 cents. Today, the shares are up more than 13% to 52 cents.
The reason for the rise is that the company keeps announcing that it has dug up more diamonds at Lulo in Angola where it is digging pits, trying to find the main kimberlite pipe where more gems are expected to be found.
The type of diamonds recovered are attracting a lot of interest on the global market. Five parcels have been sold so far, fetching $10.7 million with an average price of $1,667 per carat, a big premium to the world average of $US120.
Lucapa is the operator of a 3,000 square kilometre diamond concession in Angola’s Lunda Norte diamond heartland. Lulo is located within 150km of Catoca, the world’s fourth biggest kimberlite diamond mine.
The company is in a joint venture with the Angolan government’s Endiama and local partner Rosas & Petalas.
The diamonds found suggest there are a lot of large alluvial diamonds near the surface. Lulo diamonds include a high proportion of large specials bigger than 10.8 carats each plus rare Type IIa gems and fancy colours, including pinks and yellows.
One special diamond is being uncovered every 1.2 production days. The largest was 131.4 carats.
CEO Stephen Wetherall said the latest developments represent major milestones to unlock Lulo’s true diamond riches.
“We now have a confirmed kimberlite adjacent to the Mining Block 8 alluvial diamond field where we are recovering both large valuable diamonds and coarse kimberlite indicator minerals,” says Wetherall.
The major goal at Lulo is to find the “primary kimberlite source or sources of the exceptional alluvial diamonds we are recovering on a daily basis”.
Business Insider Emails & Alerts
Site highlights each day to your inbox.