Lucapa Diamond Company Limited (ASX: LOM) Commences Airborne Survey at Merlin
Exploration Initiative
Lucapa Diamond Company Limited (ASX: LOM) has initiated an extensive airborne survey at its 100% owned Merlin Diamond Project, marking the first such program in 25 years. The objective is to enhance the current diamond resources through the identification of diamondiferous kimberlites and other potential minerals within the project’s tenements, which the Company sees as having considerable exploration upside.
Survey Details
The new helicopter-borne time-domain electromagnetic (HTDEM) survey will cover an area of 234 square kilometres across the Merlin Mineral Lease and the surrounding Exploration Licence. This state-of-the-art survey, utilising the Xcite™ technology from New Resolution Geophysics, is expected to redefine existing kimberlite targets and potentially discover new ones that were previously unnoticed. Results from the survey are anticipated to be disclosed in Q1 2025.
CEO Perspective
Managing Director and CEO Alex Kidman expressed confidence in the potential of the survey, stating, “Our large landholding is highly prospective for more premium quality diamond deposits and may also host other minerals.” He noted the modern survey’s capability to identify targets that past surveys missed, emphasizing its importance in positioning the Company to benefit from a market rebound in diamonds.
Strategic Importance
The survey is a low-risk, cost-effective strategy aimed at optimising the use of Lucapa’s cash resources. It is designed to boost the current JORC compliant diamond resource at Merlin, which remains open at depth, alongside evidence of high-quality diamond production history in the area. Given the proximity to Glencore’s McArthur River mine, this initiative highlights the prospect of further discoveries that could significantly add economic value to the Company as it seeks to reopen the mine.
Motley Fool contributor Aaron Shaw has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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