1st Feb 2010 07:00
1 February 2010
TanzaniteOne Limited
("TanzaniteOne" or "the Company") (AIM: TNZ)
Operational and Marketing Update
TanzaniteOne Limited ("TanzaniteOne" or "the Company") (AIM: TNZ), the gemstones producer and developer today announces an operational, sales and marketing update. All figures are unaudited.
Highlights
MoU with O.E cutting and distribution company; Hohoemi Brains Inc. of Tokyo, Japan US$ 12.2 million in sales for 2009US$ 4.5 million in sales for Q4 Total production of 1.91 million carats for 2009 at a grade of 51 carats per tonne Continuation of Tsavorite exploration programmeMemorandum of Understanding
TanzaniteOne Cutting Edge, has entered into a Memorandum of Understanding ("MoU") with Hohoemi Brains Inc. of Tokyo, Japan ("Hohoemi Brains"). Under the terms of the MOU the parties will jointly establish a common cutting and marketing concept for selected tanzanite. Cutting will be based on Hohoemi Brains patented Over Excellent ("O.E") cut. For more information on Hohoemi Brains Inc. please visit their website at: http://www.hohoemi.co.jp/eng/
TanzaniteOne Cutting Edge focuses on precision cutting and visual optimisation of predominantly lighter coloured tanzanite. As previously announced, through Tanzanite One Cutting Edge, the Company is also establishing sales and marketing channels for TanzaniteOne' SI and I grade material. This is being achieved through the development of specialised polishing and product strategies and joint ventures with established cutting and distribution houses like Hohoemi Brains Inc, GRAFGEM S.A., and Alankara SKR Ltd (ASKR Jewelry).
Sales
Further to the Company's announcement of 1 December 2009, sales of approximately US$1 million were achieved in December 2009, bringing total sales revenue for the fourth quarter of 2009 to approximately US$4.5 million and for the full year to approximately US$ 12.2 million (unaudited). The next official sight sale is scheduled for March 2010. Additional rough tanzanite sales are planned in advance of this in addition to the income generated through the Company's Tanzanite Experience retail operations.
Production
In the fourth quarter of 2009, the Company achieved production totalling 480,161 carats, resulting in the total production of 1.91 million carats for 2009 at a grade of 51 carats per tonne, well in excess of the target set by the Company at the start of the year of 1.7 million carats.
TanzaniteOne, which uses state-of-the-art optical sorters and technically advanced processing and sorting methods, has further enhanced its sorting techniques resulting in the unlocking of further value in the B and BL categories. This initiative forms part of the Group's stated refocus on its main production source, lighter but equally brilliant stones. Additional evaluation continues in this area as TanzaniteOne strives to unlock value in this significant portion of its production.
Tsavorite
In the fourth quarter of 2009 a total of 37 RAB drill holes were completed totalling over 590m on the tsavorite deposit. Each hole was geologically logged and sampled at 1.5m intervals. Pitting was also completed along a cross-section line at 50m intervals, bringing the total number of pits to 15 for the line. In addition to the drilling and pitting, 8 samples of approximately 20 cubic meters each were also excavated and are currently ready for processing at the on site treatment plant.
Corporate
In December 2009 the Company appointed of Ambrian Partners Limited as Nominated Adviser and sole broker. Ambrian Partners Limited previously acted as joint broker to the Company.
Commenting today Bernard Olivier, Executive Director, said; "2009 was a year of recovery, following the depressed global gemstone prices of 2008, in which we made excellent progress moving back towards profitability. This year we shall develop initiatives for cutting and sales in order to maximise value from our optimized coloured gemstones operations in Tanzania. I believe TanzaniteOne has one of the most efficient and high-tech gemstone extraction operations in the world and our objective is to achieve maximum margin potential through our sales from coloured gemstones. With this in mind we are very excited about our MOU with Hohoemi Brains Inc, which could help us achieve further value from the specialised cutting and distribution of the lighter coloured tanzanite. With new routes to market already in place and significantly recovered sight sales 2010 is a year we can start to build value from our first class gemstone recovery operations established at the Company since March 2008 by Managing Director Zane Swanepoel."
Notes to the Editor:
The following modified tanzanite grading and classification system is currently being used by the Company:
|
Grade |
Description |
|
A |
Exceptional Colour, Eye Clean |
|
B |
Rare Deep Colour, Eye Clean |
|
B (SI) |
B Colour - Slightly Included |
|
B (I) |
B Colour - Included |
|
BL |
Lighter Colour B grade, Eye Clean |
|
BL (SI) |
B Light - Slightly Included |
|
BL (I) |
B Light - Included |
|
D |
Opaque Material |
END
For more information, please visit www.tanzaniteone.com or contact:
Willi Boehm, Company Secretary
+61 8 9367 5211
Bernard Olivier, Executive Director
+61 4089 481812
Nominated Adviser and Broker
Ambrian Partners Limited
Richard Greenfield/ Richard Chase
+44 (0) 20 7634 4700
Public Relations
Threadneedle Communications
Laurence Read/ Beth Harris
+44 (0)7979 955 923
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