News Bureau

February 20, 2017

Emeralds production 4.7 mn cts at Gemfields

Recently Gemfields presented an operational update for the three-month period ending 31 December 2016, the second quarter of the 2017 financial year. Production summary for 75%-owned Kagem Mining Limited in Zambia for the quarter ending 31 December 2016 records production of 4.7 million carats of emerald and beryl with an average grade of 156 carats per tonne, versus 8.2 million carats with an average grade of 272 carats per tonne in the quarter ending 31 December 2015, with the difference being attributable to the varied nature of the mineralisation and a lower-grade zone mined in the current quarter.

The auction of predominantly higher quality rough emeralds from Kagem mine that was initially scheduled in December 2016 is now going to take place in February 2017 in Lusaka, Zambia.

Production summary for 75%-owned Montepuez Ruby Mining Limitada in Mozambique for the quarter ending 31 December 2016 records Production of 1.1 million carats of ruby and corundum with an average grade of 12 carats per tonne, versus 1.6 million carats with an average grade of 22 carats per tonne in the quarter ending 31 December 2015, as a result of the lower grade, but higher value material being processed.

The next mixed quality auction of rough rubies and corundum from the Montepuez ruby mine is expected to take place in June 2017 in Singapore.

Ian Harebottle, CEO of Gemfields, commented: This quarter has seen Montepuez continue to deliver strong results, with a significant increase in ore processed relative to the prior comparable period as a result of improved operational efficiencies. This performance is particularly pleasing given the results have been achieved despite a planned temporary shutdown of the wash plant to allow for substantial upgrades.

This included the installation of a new scrubber, de-grit unit and Dense Medium Separation unit. Traditionally used in the diamond sector, this is the first time a DMS plant has been used in ruby production. We are very pleased with the initial results and are anticipating a significant uplift in processing rates over the coming months.

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