12th Sep 2006 07:00
12 September 2006 HIGH VALUATION OF EMERALDS PRODUCED FROM INITIAL MINING ("Gemfields" or "the Company")(AIM: "GEM") * High Value emeralds mined * US$994,567 independently assessed value from initial sample parcel * Mine on target to be at full capacity by end of Q4 2006 Gemfields Resources Plc today announces the first independent valuations madeon emeralds produced from trial mining at the company's 100% ownedMbuva-Chibolele Emerald mine.The emeralds that were subject to this initial valuation are only those whichcould be visually seen and extracted by hand during the high speed mechanisedmining of contact zones. The greater balance of mined emerald bearing contactzone is currently being stockpiled awaiting the establishment of washplantfacilities, expected to become operational during Q4 2006.The values of the various grades of emeralds are as under: No. Grade Qty Value per Carat Total Value Carats US$ US$ 1 Gem grade 29,097 21.31 620,023 2 Medium grade 35,465 3.47 123,090 3 Low Grade 444,695 0.52 230,354 4 Cabochon Grade 1,492,500 0.01 21,100 TOTAL 2,001,757 US$ 994,567 The Mbuva-Chibolele emerald property hosts approximately 18 million tonnes ofdrilled resources. It is a low-cost operation to be mined over 10 years.Exploratory drilling will commence next year for depth and strike extensions,which are expected to greatly enhance the size of the ore body.Commenting today, Peter Kitchen, CEO, of Gemfields Resources said: 'From thevaluation of an initial sample of emeralds we have obtained high grades andvalues. I look forward to the Mbuva-Chibolele mine reaching full production bythe end of 2006 with the commissioning of a modern gemstone extraction plant.Our first emerald sales are targeted for November".For more information:Peter Kitchen, CEO [email protected] James, CFO [email protected] Resources Plc Tel: +44 (0)20 7016 9416www.gemfields.co.ukLaurence Read/ Leesa Peters Tel: +44 (0) 207 429 6605Conduit PR Cell: +44 (0) 7974 982 512ENDGEMFIELDS RESOURCES PLCRelated Shares:
Gemfields Grou.