Lucapa subsidiary begins geotechnical drilling at Merlin diamond project

Lucapa Diamond says its wholly-owned subsidiary, Australian Natural Diamonds (AusND), has started the geotechnical drilling programme at the Merlin diamond project in the Northern Territory of Australia.
This, it said, follows approval by the Northern Territory Government (NTG) to appoint AusND as the operator of the site, which allows it to begin specific approved site works ahead of the completion of the Merlin acquisition.
Lucapa said a mining management plan has also been submitted to and approved by the NTG, which includes the programme for the current geotechnical drilling activities at Merlin. 
The programme is part of the feasibility study process and involves about 5,800m of diamond core drilling at the site.
“A Scoping Study, based on the existing 4.4 million carat JORC compliant mineral resource estimate and using open pit and vertical pit mining methods, is well advanced and is planned to be released during the fourth quarter of 2021,” said Lucapa.
“In order to facilitate the drilling programme, the existing camp was recommissioned and services such as access roads, power, water and communications have all been re-established.” 
As part of the acquisition consideration, AusND has assumed the environmental security bond for Merlin. It paid the required A$1.1 million bond to the NTG and the remaining A$7.4 million acquisition consideration payment is payable on completion of all the conditions precedent to the Merlin asset sale agreement.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished