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Shares in the Miles Kennedy-led Lucapa Diamond Company soared after it announced it had secured a year mining licence over its Lulo concession in Angola. Lucapa said the mining licence, which covers an area of sqkm, was the culmination of six years of continuous investment in exploration and bulk sampling programs of kimberlite and alluvial diamonds at Lulo.

As operator, Lucapa holds a 40 per cent stake in the project with the Angolan Government and another private Angolan company holding the balance. The year mining licence allows for rolling year extension options, clearance for Lucapa to repatriate its share of dividends and capital gains, favourable tax and royalty regimes and hour mining operations.

Lucapa's commercial and development executive director Stephen Wetherall said the signing of the agreements represented a significant transforming event for Lucapa, giving it security of tenure over one of the best and relatively unexplored diamond addresses in the world. He said mining and recovering alluvial diamonds at Lulo should enable Lucapa to generate sustainable cashflows to support the continued pursuit of its main goal, to locate the primary kimberlite source of the gems.

Using existing processing infrastructure, the company's initial production plan targets building up to a throughput rate of 14, bulk cubic metres of diamond-bearing alluvial gravels a month by early in the second quarter of next year.