REG - Gem Resources PLC - Drilling/Production Report

Gem ResourcesAnnouncement

12/02/2025 07:00

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RNS Number : 7575W  Gem Resources PLC  12 February 2025

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
REGULATION 2014/596/EU WHICH IS PART OF DOMESTIC UK LAW PURSUANT TO THE MARKET
ABUSE (AMENDMENT) (EU EXIT) REGULATIONS (SI 2019/310) ("UK MAR"). UPON THE
PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION (AS DEFINED IN UK
MAR) IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

Gem Resources Plc

("GEMR" or the "Company")

Operational Update - Cobra Pit starts production with initial results
surpassing historical results

Gem Resources Plc (LSE: GEMR), the owner and operator of the Gravelotte
Emerald Mine in South Africa, is pleased to provide a further operational
update following the successful resumption of mining activities in the Cobra
Open Pit. This marks a significant milestone as GEMR undertakes its own hard
rock mining operations within the historic Gravelotte deposit where the
initial results are ahead of historical results.

Key Operational Developments:

Since the commencement of mining activities in the Cobra Open pit on 20
January 2025, the Company has undertaken the following key activities and made
significant progress:

Ore Zone Access and Mining Progression

·      The Company has commenced exposing the targeted ore-bearing zone
by removing overburden (i.e. the material covering the ore-bearing material)
on the southern side of the Cobra Open Pit.

·      Following the completion of overburden stripping, direct ore
extraction has commenced seamlessly.

Higher-Grade and Quality Ore Extraction

·      Initial mining from the newly exposed ore zone in the Cobra Open
pit has yielded both high-grade and high-quality emerald-bearing material.

·      The geological characteristics observed align with historical
production data, supporting the potential for continued high-quality
recoveries from the Cobra Open pit

Processing Plant Performance & Upgrades

·      The Company's processing plant has now successfully achieved
grades of up to 60 carats per tonne, underscoring the strong potential of the
deposit.

·      Ongoing upgrades to the processing plant have proven highly
successful, resulting in significantly improved throughput.

 

Phased Ramp-Up & Expansion of Operations

·      In line with the Company's capital-efficient phased approach,
GEMR is steadily ramping up mining activities at the Cobra Open Pit.

·      Phase 2, as announced in December 2024, has focused on
establishing a steady supply of high-grade ore while optimizing processing
efficiencies.

·      The Company remains committed to increasing production volumes in
a measured and controlled manner, aligning with market conditions and
optimizing sale / auction preparation.

·      GEMR continues to actively stockpile emeralds in preparation for
its first sale or auction

 

Market Conditions & Emerald Demand

 

The emerald market continues to demonstrate resilience, with prices remaining
strong. Unlike the diamond sector, which has faced pricing pressures due to
increased competition from lab-grown alternatives, the demand for
high-quality, naturally mined emeralds remains robust.

 

 

Ed Nealon Commented: "We are extremely pleased with the initial results and
ongoing progress at Gravelotte since initiating our own hard rock mining
operations in the Cobra Open Pit. The initial ore recovered is consistent with
our expectations of the quality and output potential of the deposit, at the
same time the efficiency of our upgraded processing plant has been a key
driver in optimizing production. We look forward to further scaling our
operations and remain on track for our first sale in the first half of the
year."

 

 

Competent Persons Statement

 

The information in this announcement that relates to results is based on
information compiled by GEMR and reviewed by Dr Bernard Olivier, a member of
the Australasian Institute of Mining and Metallurgy (MAusIMM). Dr Olivier is
an employee of GEMR and has more than 25 years' industry experience which is
relevant to the style of mineralisation, deposit type, and activity which he
is undertaking to qualify as a Competent Person as defined in the 2012 Edition
of the JORC. This includes 25 years of Mining, Resource Estimation and
Exploration.

 

 

Figure 1: High-quality emeralds recovered from the Cobra Open Pit - 2025

 

 

 

Figure 2: A selection of emeralds extracted from the Cobra Open Pit during
2025.

 

Enquiries:

 

 Gem Resources Plc                                                                                                                     +44 (0)746 368 6497

 Chief Executive Officer

 Bernard Olivier

 Executive Director

 Peter Redmond

 Chief Operating Officer

Jeremy Sturgess-Smith

                                                                                                                                     info@gemresources.co.uk (mailto:info@gemresources.co.uk)

 Peterhouse Capital Limited                                                                                                            +44 (0)20 7469 0930

 Joint Corporate Broker

 Lucy Williams

 Duncan Vasey

 Capital Plus Partners

 Joint Corporate Broker

 Jonathan                                                                                                                              +44 (0)203 821 6169
 Critchley

 

 

About Gem Resources Plc ("GEMR")

 

GEMR is an emerging emerald producer, focusing on the Gravelotte Emerald Mine.
Historically, GEMR is one of the world's largest emerald mines, located in
South Africa. The Company is committed to sustainable and efficient mining
practices, utilizing modern technology to revive this historically significant
emerald mine.  The Company has also acquired the Curlew Emerald Mine in
Australia, further expanding its emerald mining operations and assets.

 

For more information about Gem Resources Plc, including investor relations and
corporate news, please visit our website at www.gemresources.co.uk
(http://www.gemresources.co.uk) . Interested parties are also invited to
sign-up for our newsletter via our website.

 

 

 

 

 

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