Canaccord Genuity

Lucapa (ASX:LOM) - I am breathing into a paper bag as I type. Stock is up 20% on the news that it has confirmed THREE more diamond bearing kimberlitic pipes at its Lulo project in Angola. I don't want to excite myself any further so I am trying to stick to the facts....but it looks like we have a cluster of diamondiferous pipes. Globally there are about 6,500 known kimberlitic pipes, 900 of these are confirmed as diamondiferous, and 35 of these are commercial. Statistically that means 4% of diamondiferous pipes are its early days, however this is an amazing piece of news. Especially when 2 of the pipes were confirmed as containing Type 2A gems as this will significantly increase mine commerciality. Only 1% of the world's diamonds are Type 2A. Now the company needs to confirm that the grades are enough to sustain a fully-fledged mining operation.


Please sign in to comment on this wire.
Medium screen shot 2016 01 12 at 2.25.34 pm

James Marlay

Good drama in this wire! Exciting for the company as well

Join the conversation