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MRM Ruby Mine Samrec Resource & Reserves Update
GEMFIELDS GROUP LIMITED
(formerly Pallinghurst Resources Limited)
(Incorporated in Guernsey)
(Guernsey registration Number: 47656)
(South African external company registration number 2009/012636/10)
Share code on the BSX: GML.BH ISIN: GG00BG0KTL52
Share code on the JSE: GML
("Gemfields" or the "Company")
MRM Ruby Mine SAMREC Resource & Reserves Update
Gemfields is pleased to announce the publication of a Competent Persons Reports (“CPR”) produced by SRK
Consulting (UK) Ltd (“SRK”) in respect of Montepuez Ruby Mining Limitada (“MRM”), which is 75% owned by
Gemfields and 25% by local Mozambican partner Mwiriti Limitada. The CPR includes ‘Mineral Resource’ and
‘Mineral Reserve’ estimates (at 31 August 2018) in accordance with the 2016 edition of the South African Code
for the reporting of exploration results, Mineral Resources and Mineral Reserves (the SAMREC Code or
“SAMREC”).
Highlights
- A total of 60.2 million tonnes of ‘Secondary Mineral Resource’ and 1.4 million tonnes of ‘Primary Mineral
Resource’ at an average of 6.2 and 97.9 carats per tonne of ruby content respectively.
- Of the total Mineral Resource of 61.6 million tonnes, 21.6 million tonnes have been classified in the
‘Indicated’ category. The remaining 40.0 million tonnes have been classified in the ‘Inferred’ category
pending further validation of the mineralisation grade by way of bulk sampling.
- The post-tax net present value (“NPV”) is estimated to be USD 527 million at a discount rate of 10% with
a planned life-of-mine (“LoMp”) of 15 years based on the 21.6 million tonnes of Probable Mineral
Reserves derived from the Indicated Mineral Resource of similar size.
The results are summarised in the following table:
TONNES (millions) MINERAL RESOURCE MINERAL RESERVE
Primary Deposits Indicated 1.2 Probable 1.1
Inferred 0.2 - -
Secondary Deposits Indicated 20.4 Probable 20.5
Inferred 39.8 - -
TOTAL 61.6 21.6
CONTAINED CARATS
(millions, ruby + MINERAL RESOURCE MINERAL RESERVE
corundum)
Primary Deposits Indicated 112.3 Probable 110.7
Inferred 23.5 -
Secondary Deposits Indicated 85.7 Probable 86.3
Inferred 290.1 -
TOTAL 511.6 197.0
Comparisons to Previous Report
A maiden (JORC-compliant) resource statement was prepared in respect of MRM in 2015. Since then, further
auger drilling has been carried out across the licence area, extending the explored area from 36 to 77 square
kilometres. This presented an opportunity to conduct a meaningful paleo-drainage analysis alongside other
geological investigations. When combined with the experience gained from actual mining and ongoing bulk-
sampling operations, the result is a much better understanding of the mineralisation characteristics in the
secondary deposit environment across a wider geographical area, as well as improved insight into ore grade
variations in the eight spatial domains now identified and which cover 77 square kilometres (only two spatial
domains had been identified in the 2015 JORC report, covering 36 square kilometres). These eight domains are
considered to be of similar grade and geological control. However, only four of the domains host noteworthy
bulk sampling pits and these are the only domains included in the Indicated Mineral Resource (in keeping with
SAMREC). As such, data from the four domains with bulk sampling exercises has not been extrapolated to the
remaining four domains.
The improved level of evidence-based confidence in the Mineral Resource, combined with a switch from the
JORC-compliant resource statement to SAMREC-based reporting, mean that the LoMp and associated NPV have
been adversely impacted when compared with the 2015 JORC CPR (21 years and USD 996 million respectively).
Future bulk sampling in the remaining four domains will provide grade estimates in these areas and therefore
present an opportunity to augment the LoMp and associated NPV.
Data Use in 2017 Annual Report
Shareholders are reminded that the Mineral Resources and Mineral Reserves Report and Summary Report which
can be found on the Company’s website and in the 2017 Annual Report respectively, were based on a draft MRM
CPR which remained under review by the Johannesburg Stock Exchange (“JSE”) at that time. Shareholders were
informed at the time that the Probable Reserves derived from Indicated Resources were still subject to
alignment between the respective teams of SRK and JSE.
View the latest report
The full CPR can be found on the Company’s website at www.gemfieldsgroup.com/assets/mineral-resources-
and-mineral-reserves/. The CPR for Kagem Mining Limited can also be found at the same website address.
Kartikeya Parikshya, Gemfields’ Managing Director for Mozambique & Ethiopia commented:
“When control of Gemfields’ assets shifted from London’s Alternative Investment Market (AIM) to the
Johannesburg Stock Exchange, we undertook to provide SAMREC-compliant reports for our major mining assets.
The latest CPR for MRM benefits from more than 3 years of additional mining, bulk sampling and exploration of
the MRM deposits since publication of the maiden JORC report in 2015. While the headline life-of-mine and NPV
figures have ostensibly declined, in reality, our understanding of, and confidence in, the MRM deposits have
improved materially, and our Mozambican home now stands on much firmer foundations. We are particularly
encouraged by the increased level of Mineral Resource base and confidence underpinning the latest CPR and
thank the JSE, SRK, MRM and Gemfields team members involved for all their hard work.”
Additional information on Gemfields
Gemfields is a world leading supplier of responsibly sourced coloured gemstones. Gemfields is the operator and
75% owner of both the Kagem emerald mine in Zambia (believed to be the world’s single largest producing
emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered
ruby deposits in the world). In addition, Gemfields also holds controlling interests in various other gemstone
mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.
Gemfields’ outright ownership of Fabergé - an iconic and prestigious brand of exceptional heritage - enables
Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the
wider group’s “mine and market” vision.
Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide
a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields’ business
model and has played an important role in the growth of the global coloured gemstone sector.
Further information on Gemfields Group Limited can be found at www.gemfieldsgroup.com.
For any press enquiries please contact us on investor.relations@gemfields.com.
Guernsey
21 January 2019
Sponsor
Investec Bank Limited
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