REG - Gem Resources PLC - Operational Update

Gem ResourcesAnnouncement

05/11/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241105:nRSE8718Ka&default-theme=true

RNS Number : 8718K  Gem Resources PLC  05 November 2024

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR
INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES, AUSTRALIA, CANADA, JAPAN,
THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO
DISTRIBUTE THIS ANNOUNCEMENT.

 

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 (formerly URA Holdings plc)

("GEMR" or the "Company")

 

Operational Update

 

Gem Resources Plc (LSE: GEMR), formerly URA Holdings plc, is pleased to
provide an operational update on its activities this quarter at the Gravelotte
Emerald Mine ("Gravelotte").

 

 

Phase 1 Restart Progress

 

Phase 1 of the Gravelotte's restart has been underway for approximately six
months. During this period, the Company has processed approximately 5,500
tonnes of ore, primarily sourced from tailings and stockpiled materials.
Initial results from Phase 1 have highlighted several key items and
opportunities to enhance operational efficiency.

 

To capitalize on these findings, GEM has engaged two local engineering firms
to support its in-house team in manufacturing, installing, and modifying
components within the processing plant which will boost its production
capacity. In addition, this initiative aims to improve recovery rates, and
minimise delays caused by equipment downtime. Additionally, general site
infrastructure has been systematically upgraded since the start of Phase 1.

 

Key Upgrades

 

A major improvement involves replacing the current screening trommel (see
Figure 1) with a custom-made double deck vibrating washing and sizing screen
(Figures 2 and 3). The new screen, now on-site, is expected to be installed
within a week, followed by calibration and fine-tuning.

 

The new screen's robust design and larger capacity are projected to
significantly increase daily processing volume and reduce downtime. GEM will
update shareholders on the efficiency gains achieved after the screen has been
operational for a sufficient period.

 

Mining Operations

 

In Phase 1, the material processed has primarily been from stockpiles and
tailings, while some material removed as part of the preparation of the start
of mining activities in both the Cobra and Discovery Open Pits were also
processed. Preparations for the commencement of mining in the Cobra and
Discovery open pits have been successful, with material cleared and access
roads now completed in preparation for the start of mining activities at Level
8 in the Cobra Pit and Levels 1 and 6 in the Discovery Pit.

 

Phase 2

 

Upon completing the planned processing plant upgrades, GEM will shortly
initiate active mining in both the Cobra and Discovery open pits. This next
phase will be a critical step in further ramping up production, improving the
quality of the emeralds recovered as well as establishing a steady supply of
high-grade ore for processing.

 

 

Chairman's Statement

 

Ed Nealon, Chairman of Gem Resources Plc, commented: "We are pleased by the
progress made during Phase 1 of Gravelotte's restart, which demonstrates the
mine's potential to resume its historic position as a major source of
emeralds. The upgrades and equipment additions will improve recovery rates and
minimise production delays. As part of the start-up phase, we were hoping to
conduct a small trial sale in late September, but due to circumstances beyond
our control we are unable to do so. We are currently looking at options to
conduct a trial sale in the near future while we continue to stockpile
material. I look forward to sharing further updates to keep shareholders
informed of our journey of growth and renewal at Gravelotte."

 

-Ends-

 

 

 

 

 

Figure 1. Trommel screen current in use in the GEM processing circuit.

 

 

 

Figure 2. Double Deck vibrating washing and sizing screen arriving on site.

 

 

Figure 3. New Double Deck Sizing and washing Screen to replace the Trommel
screen.

 

 

 

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

 Keith Swann                                                                                                                                                 +44 (0)203 821 6169

 Jon                                                                                                                                                         +44 (0)203 821 6168
 Critchley

 CMC Markets

 Joint Corporate Broker                                                                                                                                      +44 (0)20 3003 8632

 Douglas Crippen

About Gem Resources Plc ("GEMR")

 

GEMR is an emerging emerald producer, focusing on the Gravelotte Emerald Mine
(GEM). Historically, GEM is one of the world's largest emerald mines, located
in South Africa. The Company s 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) .

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DRLQZLFBZFLFFBF