That Angolan government just spent $500 million developing their share of the Luachi kimberlite. Pulling back investment into their natural resources would mean certain death of their economy! Its all they have.
Worth reading up on the Luachi mine if anyone here doubts that a major rerate can happen very quickly once drilling commences on a kimberlite target! Only a few holes can indicate decades worth of mining potential!
Endiama and Alrosa invest 300 million US dollars in diamond exploration
19th March 2016
The National Diamond Company (Endiama E.P.), together with the Russian multinational Alrosa are investing in an initial phase, 300 million US dollars in the Luachi mine, province of Lunda Sul, for the extraction of a total of 80 million carats at a depth of 100 meters.
The Luachi mine, this Thursday, 17th of March 2016, received a visit from the President of the Board of
Endiama, Carlos Sumbula, who evaluated the level of implementation of ongoing prospection of the mine.
The head of the state-owned diamond company stated that initiation of diamond exploration is forecast to begin in 2018, after the discovery of what may be the largest Kimberlite in the world (a vein of rocks that contain diamonds), with reserves estimated at 350 million carats of diamonds.
“We have an area of 20 hectares of approved reserves, sufficient to develop a pilot mine. We have reserves up to a depth of 150 meters. At this stage, we have concluded the perforation of 20 test holes, with results showing a significant quantity of diamonds which only adds to our confidence as regards to whether or not the project is economically viable”, explained the official.
Carlos Sumbula guaranteed that an additional investment of over 800 million US dollars will be invested in diamond extraction at a further depth of 400 meters.
“We expect to extract up to a depth of 400 meters an estimated 350 million tonnes of material. According to results of geological research carried out, the ratio is close to one carat per tonne of material, reflecting a production of 12 million carats per year”, the President added.
Endiama estimates that once full production capacity is reached, the Luachi mine, with an estimated lifespan of 30 years could create over 200,000 jobs.
http://www.angola-today.com/news/endiama-alrosa/
