Angola : Tango Mining joins Txapemba for diamonds in Lunda Norte

TSXV-listed Tango Mining Ltd reached three year renewable services agreement for mining and marketing of diamonds with Txapemba Canguba R.L, a semi-industrial diamond exploitation cooperative in Lunda Norte province in Angola.

The Canadian company will be responsible for capital expenditures associated with alluvial mine design and equipment acquisition and will be the sole operator. As remuneration, Tango said , on 11 september, it will receive 60% of the proceeds from the sale of produced stones and all of its operational costs are deductible.

The agreement occurred at the time when Angola, the world’s fifth biggest producer of diamonds by value, has been actively encouraging foreign investment in its diamond sector under a new mining code introduced in 2011. The mining code no longer includes the requirement for Angola to hold a majority interest in diamond mining projects.

Txapemba Canguba holds 84 km2 concession for the semi-industrial exploitation of diamonds within the Luembe River basin, municipality of Cambulo, in an area that was a past alluvial diamond producer. Tango Mining Ltd said the area is well known for both alluvial and kimberlite diamonds.

Russian major world diamond producer Alrosa is the operator of the world’s fourth biggest diamond mine Catoca, which is located 220 km south-west of the property. Even, ASX listed Lucapa Diamond Company has 40% ownership of Lulo project with a 35 year mining licence agreement to mine the alluvial diamonds in northern Angola. The project is part of a 3,000 km2 concession that includes Cacuilo and Lulo Rivers, associated tributaries and terraces in Lunda Norte.