Diamond exploration in Angola isabout as risky as it gets, but LucapaDiamond Co (Sydney: LOM) is worthkeeping an eye on. The company hasa 3,000 sq km concession in northeast Angola, a vast green landscapeof rivers and swamps. It has beenexploring in the country for more thanseven years, but in the last 18 monthsappears to have zoned in on themotherlode.
Lucapa is currently sifting throughgravel beds on the banks of the Cacuiloriver (this is known as alluvial mining),pumping gravel into a processing plantand pulling out diamonds. In February,Lucapa recovered a 404-caratdiamond, the largest ever found inAngola, which it promptly sold for$16m.
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