Gemfields plc recently announced the publication of a Competent Persons Report (CPR) on the Kagem Emerald Mine in Zambia, which is 75% owned by Gemfields and 25% by the Government of Zambia. The CPR was produced by SRK Consulting (UK) Limited (SRK).   The CPR includes Mineral Resource and Ore Reserve estimates and accompanying statements prepared in accordance with JORC Code (2012) based on an extended life of mine (LoM) plan prepared by Gemfields and SRK, the Company added. 

Summarising the highlights of the report Gemfields said that the Measured, Indicated and Inferred Mineral Resource were put at 1.8 billion carats (bct) of emerald and beryl at an in-situ grade of 281 carats per tonne (ct/t).   The Measured Mineral Resource was 800,000 tonnes or 290 million carats (mct) at a grade of 345 ct/t;  the Indicated Mineral Resource was of 4.0 million tonnes (mt) or 1.33 bct at a grade of 335 ct/t; and the Inferred Mineral Resource was of 1.7 mt or 181 mct at a grade of 110 ct/t.

The Proven and Probable Ore Reserves atood at 1.1 bct of emerald and beryl at a diluted ore grade of 291 ct/t. The Proven Ore Reserve of 920,000 tonnes or 276 mct at a grade of 300 ct/t; and Probable Ore Reserve of 2.9 mt or 840 mct at a grade of 288 ct/t.

The Independent Technical Economic Model projected a 25-year LoM open pit operation producing a total of 1.1 bct.  The   processing capacity was projected to increase from the current 90,000 tonnes per annum (t/a) to 180,000 t/a by July 2018 with the inclusion of the Fibolele pit. The average annual production of emeralds and beryl was estimated at of 44.7 mct over the LoM; while the projected real cash flow (no discount rate applied) over the LoM of was estimated at approximately US$ 1.59 billion. 

“Robust economics show a post-tax Net Present Value (NPV) of USD520 million (based on 10% base case discount rate),” Gemfields reported. “And capital expenditure of US$ 84 million over the first four years and a total of US$ 516 million over LoM of which US$ 310 million relates to capitalised waste stripping costs.”

“Today’s updated resource statement highlights the long term opportunity that exists at our Kagem Emerald Mine in Zambia,” commented Ian Harebottle, CEO of Gemfields. “As the first recorded Measured Mineral Resource and Proven Ore Reserve Statement for Kagem, and possibly the first of its kind across the entire global coloured gemstone sector, the significance of this report is not only a milestone event that bears testament to the quantity and quality of work carried out by SRK and the Gemfields team at Kagem, but also provides further evidence to the continued growth potential, positive momentum and considerable opportunity inherent within the open pit mine plan.”