Lonrho Africa-backed AIM candidate Nare Diamonds says it has recovered a 235 carat stone from South Africa's Schmidtsdrift mine.

Charles Mostert, boss of Nare, says the diamond is octahedron in shape and 'of very good quality', according to independent assessors. Diamonds of this size are rare and can command high prices when cut and polished, as instanced by a 135-carat stone last sold in the 1990s for more than £2 million.

Lonrho Africa, nowadays run by entrepreneurial Australian David Lenigas, recently paid £1.5 million for 17 per cent of Nare Diamonds, which it intends to float shortly on AIM. Headed by Mostert, a former director of Petra Diamonds acquisition Crown Diamonds, Nare doubtless hopes to achieve a float price above the 10.4p a share which Lonrho paid — helped by the Schmidtsdrift find.

Lenigas has declared he wants to beef up Lonrho Africa, with mining developments from gems to uranium and with infrastructure and up-market tourism ventures. At 28p, the shares offer speculative spice.

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