quaterly out now , page-3

Other interesting bits (unsure if they've been noted before on here):

In the event that a mining operation is commenced within the Lulo Concession, Lonrho is entitled to first recover all of its exploration and development costs, after which the proceeds will be shared proportionally between the stakeholders.

The recovery of the 53.2 carat stone from BLK_06 has given the Company confidence that the kimberlitic source of the gem-quality stone is nearby.

This represents an exceptional average grade of 46.19 carats per hundred cubic metres. Overall, the average stone size from the BLK_06 bulk sample is a remarkable 1.6 carats.

The kimberlite work program was approved by Endiama on 7 December 2011.

Significantly, during the course of the Company’s prospecting operations, three new kimberlites were recognised

The directors of Lonrho have three months in which to deal with the shortfall from the entitlement issue in accordance with the terms of the Offer Document. Discussions with a number of potential investors are ongoing.

During the quarter, the Company finalised negotiations with Endiama regarding the $US1.4 million bond which was lodged by Lonrho when the original Lulo joint venture was signed. The $US1.4 million will be credited as exploration expenditure incurred by Lonrho with $US1 million applied to the kimberlite permit and $US400,000 applied to the alluvial permit.