Lucapa Diamond Company has advanced its search for Lulo diamonds source in Angola, southern Africa after noting encouraging sampling results last month.
The company and its partners, Endiama and Rosas & Petalas plan to drill existing priority kimberlites in the Canguige catchment area, following the recovery 45 diamonds of up to 3.75 carats.
The area is upstream of the Cacuilo River valley, where Lucapa and its partners have been mining some of the world’s highest value alluvial diamonds for several years.
Lucapa plans to complete drilling in April, with bulk samples from the pipes to be excavated and trucked to the Lulo treatment plant for processing.
The company will use the mobile Hanjin rig, which is track-mounted to enable drilling during the wet season.
Lucapa intends to raise capital for the exploration program after reducing its free cash since self-funding a $US12 million ($18 million) expansion of the mining operations.
The expansion involved the purchase of a mining fleet designed to deliver a 50 per cent increase in carat production this year.
Lucapa is now set to issue more than 25 million shares at a price of $0.11 a share, around 13 per cent discount to the volume weighted average price of its shares during the previous 30-day period.
It will also undertake a rights issue to raise a maximum of $3.9 million through the issue of more than 35 million shares.