Hypothetical takeover $250m to $1b, page-32

Dazzaa - we all know the meaning behind the cliché , "one size fits all". Well it might work well for an alluvial operation, but it's not the case with hard rock diamond mining, since each kimberlite pipe is unique, and no two kimberlite clusters are the same. Indeed, complexities can, and do, occur due to projects extending across multiple concessions/tenements.

Multiple diamond-bearing kimberlites within a kimberlite cluster occur worldwide, but if we look at one closer to home (Angola), we have the Camutue project on the outskirts of the town, Lucapa (now you know where our name came from), some 250km to the north-east of Lulo. The Camutue project spans three concessions, i.e. Camutue East, Camutue West and Cairepa. It consists of nine pipes, five of which are diamond-bearing. Two of the pipes have already been developed, as seen from the below GE image. Invariably, the location of the five diamond-bearing pipes would have played an important role in deciding where and how to setup the infrastructure. Likewise, the net worth would be measured for the entire project, rather than for each diamond-bearing kimberlite, since the infrastructure is shared.

Another example of a multiple diamond-bearing project is the Camafuca-Camazambo kimberlite cluster, 35km due west of the Camutue project. The project consists of five diamond-bearing pipes, which forms part of the main river system (see below image).

I believe that LOM is heading in a similar direction to Camutue and Camafuca-Camazambo, where we have identified multiple diamond-bearing pipes, but all within the Lulo concession. We know that two of the pipes (Se251, Se257) are Type lla, however further testing will be required to prove if we have commercial pipe(s). It could be that no one pipe is economical to mine, but a different story for multiple pipes, where as a group it could be very economical to mine. That will come clearer as the story unfolds.

Back to your question, yes, one proven commercial pipe could be lights out for LOM, but I'm sure that our BOD will be looking at extracting the best vale for shareholders, which will involve proving up multiple commercial pipes within close proximity to each other.

It's important to be aware that a major will understand the implications of our ongoing discoveries and the logistics unique to Lulo, so don't be surprised if at sometime in the near future, they're invited to inspect our data room.