REG - Gem Resources PLC - Operations Update

Gem ResourcesAnnouncement

11/12/2024 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:20241211:nRSK5635Pa&default-theme=true

RNS Number : 5635P  Gem Resources PLC  11 December 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

 

Processing Plant Upgrades Completed and Phase 2 Operations commenced

 

Gem Resources Plc (LSE: GEMR) is pleased to provide an operational update
regarding progress at its Gravelotte Emerald Mine ("Gravelotte") in South
Africa.

 

 

Key Highlights

 

•              Processing Plant Upgrades Completed: The
refurbishment and upgrades to the processing plant have been successfully
completed. The improvements included the installation of a double-deck
vibrating washing and sizing screen, and other enhancements aimed at
optimising throughput and minimizing downtime.

 

•              Increased Processing Capacity: During the first
two weeks of operation (following the upgrades), the processing plant achieved
an average increase of approximately 45% in processing capacity. This
translates to an average of approximately 100 tonnes of ore processed per day.

 

•              Operational Reliability: Since completion of the
upgrades, the plant has operated without any downtime related to breakdowns, a
testament to the quality and durability of the enhancements.

 

•              Phase 2 Operations Commence: The success of the
plant upgrades has enabled the Company to progress to Phase 2, with active
mining operations now underway in the Cobra Open Pit. This marks a critical
step toward securing a steady supply of high-grade ore for processing and
further enhancing the quality and quantity of emeralds recovered.

 

•              Seasonal Annual Leave Shutdown: In line with
industry practice and local regulations, Gravelotte will undergo a seasonal
shutdown from mid-December to early January, during which the workforce will
take their annual leave. Security will remain on site throughout the period,
and operational activities are scheduled to resume on 6 January 2025.

 

·      Significant Cost Saving: It is estimated that by constructing
most of the equipment in-house and working with local engineering workshops,
the Company has managed to achieve the upgrades at a c. 75% cost-saving
compared to buying new equipment, like the double deck sizing and washing
screen.

 

Phased Operations

As previously announced, the Company has taken a measured and cash conscious
phased approach to the restart of operations at the Gravelotte Emerald Mine.
The new custom-made double deck vibrating and sizing screen are also
performing well, and the screen's robust design and larger capacity have
already increased daily processing volume and reduced downtime. Following the
completion of the planned processing plant and site upgrades, GEMR has now
initiated Phase 2 of operations which includes ongoing active mining in the
Cobra Open Pit.

 

Chairman's Statement

 

Ed Nealon, Chairman of Gem Resources Plc, commented: "We are pleased to report
positive progress in both our mining and processing operations with the
production line now performing reliably and active mining commencing in the
Cobra open pit. These represent significant milestones in the Company's
journey. The improvements in processing are a testament to the hard work and
dedication of our team. The Company has taken a cash conscious phased approach
to the restart of operations. We have been able to achieve this progress while
remaining debt free and with strict cash controls. The 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. I am confident that these developments will drive further
growth and success as we continue to unlock the potential of the Gravelotte
mine."

 

 

 

 

 

-Ends-

 

 

 

Figure 1. New Double Deck vibrating washing and sizing screen in operation

 

 

 

 

 

 

Figure 2. Mining activities commencing in the Cobra Open Pit

 

 

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

 Jon                                                                                                                                                         +44 (0)203 821 6169
 Critchley

 CMC Markets                                                                                                                                                 +44 (0)20 3003 8632

 Joint Corporate Broker

 Douglas Crippen

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.

 

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  UPDFLFEEFVLILIS