Compare the figures that SDM have been getting from their alluvial operations and assume a similar (maybe much more convervative figure) and you appreciating the blue sky potential. Have you guys checked out the exploration results that Petra was getting for their kimberlite? Lom appear to be much better.
I'm making these observations within the context of the 10,000 garimperos that were operating at Lulo which highlight the diamondiferous nature of Lulo.
AK6 sold for $100m and it was only a small mine (with some good but not great rock) 4.2 Ha. Most of the kimberlites at Lulo are more than 15 Ha (extrapolating) and you get proportionate valuations. I this is all ball park estimates but given the proven diamondiferous nature of Lulo and you start getting very high valuations.
The Finsch mine in South Africa sold for $200m, this a 40+ year old diamond mine (rising costs and falling grades). All of these indicate that with only ONE commercial kimberlite and the associated alluvial operations, Lulo is a very valuable asset!!
LOM Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
