Lucapa Diamond Company which is the part owner and operator of the Lulo diamond project in Angola released an update of its activities for Q2 2016 ending June 30, 2016, reporting that the Lulo partners had achieved gross revenues of just over US$ 3 million from the sales of two parcels of diamonds totalling 2,670 carats.

The Company said it had achieved an average per carat price of US$ 1,132 during the quarter.

For the first half of the year, Lucapa said that Lulo diamond sales yielded US$ 26.2 million at an average price per carat of US$ 5,686. This includes a spectacular 404 ct stone that was sold during the period.  The average price per carat, after excluding the 404 ct stone recovered in February 2016, stood at USS$ 2,421/ct, the Company said.

All sales were conducted in Luanda by the Angolan government’s diamond marketing division, Sodiam. Inventory at the end of the quarter stood at 1,219 cts.

The Company said that it focused on alluvial mining activity during the quarter and achieved a yield of 2,581 cts pf rough after treating nearly 36,753 bcm of alluvial gravels.  Among the diamonds recovered were 30 special (>10.8 carats) stones totalling 88 cts, as well as a 13 ct yellow diamond.

These were predominantly sourced from Mining Block 6, with significant trial mining of the E46 area also continuing during the second quarter. Late in the quarter access was gained and mining resumed at Mining Block 8, where the record 404 ct diamond was recovered in the first quarter, the Company said.

Towards the last past of the quarter a drilling programme also commenced at specifically identified targets at L259, which will subsequently be extended to other nearby targets as well.

The Lulo project has three partners, including Lucapa with a 40% stake, government run Endiama (32%) and private local partner Rosas & Petalas with the remaining 28%. The name of the JV is Sociedade Mineira do Lulo, Limitada. Lucapa conducts all operations at the mines.

Soon after the release of the quarterly update, media reports quoted CEO Stephen Wetherall as saying that it was in discussion with its partners for increasing Lucapa’s stake in the project. He said that Endiama may consider cash and-or swapping equity for some Lucapa equity.

Lucapa said that the partners expect to conduct at least two diamond sales in the quarter ending September 2016. The unsold Lulo diamond inventory stood at 1,219 ct as at June 30.