Lonhro Mining Ltd (ASX: LOM) has put off until the second half of this year a plan to dual list on London's AIM Board and has set a goal of developing the Lulo project - a concession in north eastern Angola where 217 magnetic anomalies have been identified from helicopter-borne aeromagnetic and radiometric surveys.
Lonhro plc became involved when it took up a 24.14% stake in the Australian company which changed its name from Nare Diamonds Ltd after having been a reworking of an earlier Australian diamond seeker that had short lived mining operations in South Africa.
Intierra's Minmet data base shows all of Lonhro Mining's permits to be in southern Africa.
Minmet said that while Nare Diamonds the company negotiated with Angola's State-owned Endiama to enter Lulo on the basis of earning 39% in kimberlites that may drop to 30% after recoupment of all investment costs, and a 40% stake in alluvial diamonds.
Earlier this year the company said it was awaiting government approvals to drill six kimberlite targets at Lulo, a region where it says other diamond operators have reported that up to 75 of the targeted magnetic anomalies drilled proved to be kimberlite pipes.
It said that at Petra Diamonds' Alto Cuilo and Luangue projects, bordering Lulo, have shown up more than 70 kimberlite pipes at Alto Cuilo, the largest being 175 hectares in size.
Lonhro Mining also said that Lulo is close to the Catoca mine, claimed to be one of the largest kimberlite diamond mines in the world producing 60% of Angola's diamonds.
Today's announcement also said the company would pursue a diversification strategy in southern Africa.
Late last year the company announced selling some of its assets, including some tailings dumps near Kimberley in South Africa and its Kamfersdam new order prospecting rights to Meepo Investments Consortium (Pty) Ltd for $A3.7 M.
Lonhro Mining said today that De Beers has approved sale of the tailings dumps, which was a condition of the transaction.
The company said it has reviewed a number of bulk commodity projects in southern Africa and will progress negotiations subject to finalising due diligence.