Lucapa Diamond Company announces strategic production plan

Lucapa Diamond Company (ASX: LOM) has announced a two-stage production re-start plan for its Merlin Diamond Project in the Northern Territory, Australia. The company aims to produce the first diamonds by next year, focusing on a small-scale, low-cost development strategy. The project has a total funding requirement of A$25 million and involves mining operations across several phases.

Lucapa Diamond Company outlines Merlin Project ambitions

Lucapa Diamond Company (ASX: LOM) has detailed its two-stage production re-start plan for the Merlin Diamond Project, anticipating the first diamonds by next year through a focus on cost-effective development. The strategy includes two phases: excavator dredging and vertical pit mining, with a total funding need of A$25 million. Lucapa projects a significant pre-tax net present value and internal rate of return, aiming to secure funding and expand its resource base. The company's approach underscores its commitment to financial viability and environmental and social responsibilities, positioning the Merlin Project as Australia's sole diamond mine.

Executive insights on Lucapa's production strategy

We are in discussions with multiple parties for project-level funding and aim to expand the Merlin JORC compliant Mineral Resource base through further exploration.