Lucapa Diamond Company is awarded the Mothae Kimberlite Project, giving the company a 70 percent stake in the project, reports say. The project was awarded by the Government of the Kingdom of Lesotho who will hold the remaining 30 percent stake. Lucapa’s 70 percent share was acquired for US$ 9 million, payable over 10 months, as per reports. This development allows Lucapa to also get a 10-year mining licence covering the Mothae kimberlite area, with a right to extend it by another 10 years.

According to the company, results of trial mining at the project indicate the kimberlite hosts “large, premium value and Type IIa diamonds, including individual stones up to 254 carats and gem-quality diamonds which have sold for up to US$ 41,500 per ct, reports add. The Mothae kimberlite is believed to be a resource of indicated and inferred resources of 1 million carats.

Lucapa is considering adopting a staged low-risk development strategy and readying the mine for production within 12 months. It cites the production at the mine to be in sync with the high-value diamonds at its Lulo Mine. Also, the company cites a positive environment of price and demand for such high-value stones, which are encouraging for the mine.