Lulo Mine’s Rough-Diamond Resources Surge

Rough resources at Lucapa Diamond Company’s Lulo deposit in Angola increased 48% in 2023 as the miner identified new material that will add an extra eight years to the deposit’s production.

The figure, which refers to the volume of diamonds with a reasonable prospect of being extracted economically, climbed to 228,000 carats as of December 31, from 153,870 carats a year earlier, the company said Monday. The miner had the asset independently estimated by South Africa’s Z Star Mineral Resource Consultants.

The study valued the resources at $1,897 per carat, down 5% from $2,000 in December 2022, partly reflecting a softening in diamond prices during 2023. While the diamond grade slipped slightly to 4.55 carats per 10 cubic meters, the number of stones the company expects to recover grew 45% to 181,900 and the average size of rough was 1.26 carats per stone, versus 1.23 carats the previous year.

The rise marks the sixth consecutive year in which Lulo’s carat resources have increased, Lucapa noted. To date, total production from Lulo has come to 200,000, selling for $426 million at an average price of $2,122 per carat.