6th Dec 2006 07:00
6 December 2006 Gemfields Resources PLC ("Gemfields" or "the Company") Securing of Further Gemstone Projects, Zambia Highlights: * Option agreement signed for Jagoda Pink Tourmaline Mine * Award of Amethyst Prospecting Licence * Renewal of Miputu Emerald Prospecting Licence
Gemfields Resources PLC (AIM: GEM), the AIM listed gemstone mining and exploration company, today announces the acquisition of two further licences and the renewal of another all located within Zambia and complementing existing operations. The acquisitions and renewal are a further step towards diversifying the Gemfields portfolio from its core emerald producing and exploration operations into the development of a range of gem producing operations.
Jagoda Pink Tourmaline Mine ("Jagoda")
An option agreement for the acquisition of Gemstone Mining Licence number GL 205 has been signed. The licence area covers approximately 3.75 sq kms including the Jagoda mine which has recorded production of over 40 tonnes of pink tourmaline between the mid 1990s and 2005. Gemfields has paid US$50,000 for an option to acquire the licence. The exercise price is US$1.95m with an option period of nine months. The price of pink tourmaline has increased multi-fold in the last five years and it remains in short supply.
Large Scale Amethyst Prospecting Licence
A large scale amethyst prospecting licence PLLS-300 has been approved by the Ministry of Mines in favour of Gemfields covering an area of 80 sq kms. This licence is adjacent to the area covered under the gemstone licence held by Kariba Minerals Limited, in which Gemfields holds a 50% equity stake. Kariba's amethyst mineralisation is hosted in one of the several parallel shear zones in the area. Gemfields has acquired this prospecting licence to explore the potential of additional mineralisation in the other shear zones.
Miputu Licence Area Renewal
Gemfields has also renewed this prospecting licence in the Kafubu Emerald Area where the Company's other emerald properties lie. In accordance with the requirements for the renewal of such a licence, the area has been reduced from 600 sq km to 290 sq km. The area still covers all the known potential emerald belts with none of them being surrendered under the relinquished part.
Commenting today, Rajiv Gupta, Executive Vice-Chairman of the Company said, "These acquisitions show Gemfields' ability to procure large scale gemstone exploration and mining licences that complement our existing Zambian expertise and established operations. With our goal of first emerald production realised and the first sale of gemstones made in November we shall look to build on this success by creating a portfolio of producing coloured gemstone assets".
For more information:
Peter Kitchen, CEO [email protected]
Richard James, CFO [email protected]
Gemfields Resources Plc Tel: +44 (0)20 7016 9416
www.gemfields.co.uk
Laurence Read/ Leesa Peters Tel: +44 (0) 207 429 6605
Conduit PR Cell: +44 (0) 7979 955 923
GEMFIELDS RESOURCES PLCRelated Shares:
Gemfields Grou.