Mining volumes soared to record levels at the Lulo Diamond project in Angola, mining company Lucapa said in its latest quarterly update relating to the three-month period ending September 30, 2018, even though carats recovered dipped slightly as compared to the same period a year earlier.

Lucapa said that mining volumes at Lulo soared, rising 35% to a quarterly record of 81,117 bulk cubic metres. Though the miner reported continued recovery of large high-value specials including top-colour Type IIa diamonds weighing 114 carats, 85 carats and 62 carats, along with a 17 carat light pink, overall carats recovered were down 14% Q-on-Q and 1% for the year to date.

Sales were also impacted, dropping 4% and 49% in volume and value terms respectively during the quarter to 5,058 cts and US$ 4.5 million with the average price per carat being US$ 893/carat average for year-to-date sales.   

However, Lucapa clarified that sales were only partly affected due to lower recovery of high-value Specials during the period as it had held back a number of exceptional large, high-value specials for sale in Q4. This was to maximise values under Angola’s new diamond marketing policy, enacted in August 2018 and expected to be implemented in Q4. The stones held back include a 46 carat pink and top-colour Type IIa white diamonds weighing 114 carats, 85 carats, 75 carats, 70 carats, 62 carats and 43 carats. Lucapa believes that significant additional value will accrue as a result of this decision.

In addition, the Company also gave updates on its Mothae project in Lesotho and Brooking discovery in Western Australia. As reported earlier, at the former site, it has recently commissioned a 1.1 Mtpa diamond plant and recovered more than 4,100 cts of diamonds including 89 carat and 25 carat yellows and 28 carat and 25 carat whites from the bulk sampling programme.

Also at Brooking, there are positive results with the recovery of 1,100 micro- and macro-diamonds and the identification of 11 new lamproite targets.

Lucapa said that at the end of the quarter it had a cash balance of US$ 3 million and expected a further loan repayment as well as a pro-rata cash distribution from its JV at Lulo after the sale of Specials from there.

The Company said that it had received cutting & polishing partnership proposals from leading global diamantaires as a result of the access to premium-value diamonds from Lulo and Mothae.