Gemfields, the UK headquartered gemstone miner, has just released its maiden Mineral Resource and Ore Reserve Statement for Montepuez Ruby Mine in Mozambique. The report, prepared by SRK Consulting of UK has projected an Indicated and Inferred Mineral Resource of 467 million carats of ruby and corundum at an in-situ grade of 62.3 carats per tonne with a mine life of about 21 years.

The Competent Persons Report has been prepared in accordance with JORC Code (2012), the company said.

According to the study, the mine has an Indicated Mineral Resource of primary mineralisation of 2.1 million tonnes or 245 million carats and Inferred Mineral Resource of primary mineralisation of 0.4 million tonnes or 44 million carats an at a grade of 115.4 carats/tonne. It also has an Indicated Mineral Resource of secondary mineralisation of 5.0 million tonnes or 178 million carats at a grade of 35.7 carats/tonne, the report added.

In addition, there is also Probable Ore Reserves of 432 million carats of ruby and corundum at a diluted ore grade of 15.7 carats per tonne, the study said.

Gemfields will have to undertake capital expenditure of US$ 64 million over the first 2 years and a total of USD 305 million over the entire life of the mine, it added, with a projected post-tax NPV of US$ 996 million (based on 10% base case discount rate) and an IRR of 311.7%.

The report further said that there is extensive exploration potential, since currently the company has covered around 36 sq. km out of the 336 sq. km license area.

Ian Harebottle, CEO of Gemfields, commented, “As the first recorded Mineral Resource and Ore Reserve Statement for Montepuez, the significance of this report is not only a milestone event that bears testament to the quality of work carried out by SRK and the expertise from within the Gemfields team, but provides further evidence to the continued growth, positive momentum and opportunity inherent within the coloured gemstone sector. This, together with various expansion opportunities that are already at hand, and the impact that our continued global marketing and promotional initiatives are expected to generate, deliver a high level of confidence in Gemfields’ ongoing efforts to reinvigorate the global coloured gemstone market place.”