MOTHAE KIMBERLITE PROJECT

Lucapa owns 70% of the high-value Mothae kimberlite project in Lesotho in partnership with the Government of the Kingdom of Lesotho (30%).

Mothae is a well-defined kimberlite pipe with a surface area of ~8.8 hectares.  The pipe has a JORC classified diamond resource of +1 million carats (to a depth of 300m) at an average modelled diamond value of US$1,063 per carat (Refer ASX announcement 24 March 2017).

Mothae is located in the diamond-rich Maluti Mountains within 5km of Letseng, the world’s highest US$ per carat kimberlite diamond mine.

Lucapa is on track to commence commercial production at Mothae in H2 2018 to complement the high-value diamond production from Lulo. The Phase 1 mine was financed primarily from a US$15 million project facility provided by Equigold Pte Ltd, a company associated with prominent resources investor Simon Lee AO.

Like Letseng, trial mining has demonstrated Mothae to be a source of large and premium-value diamonds.

During the trial mining phase at Mothae, more than 23,000 carats of diamonds were recovered from ~600,000 tonnes of processed kimberlite material. This included 96 diamonds larger than 10 carats and individual stones of up to 254 carats. These diamonds were sold for US$17 million, with individual stones achieving sale prices of up to US$41,500 per carat.

Mothae has a new 10 year mining licence, which has an automatic right of renewal for a further 10 years.