New Projects

Gemfields acquired 75% of Web Gemstone Mining PLC in February 2015. The company holds an emerald exploration licence with a total concession area of 200km2 that covers 27km strike length of potential emerald mineralisation, contained within a geological lineament that stretches for over 45 kilometres.

The company has conducted systematic exploration in selected blocks within the license area, consisting of remote sensing studies, geological mapping, trenching and exploratory pitting exercises. An exploratory diamond core drilling programme, initiated in July 2016 in a promising block, was completed in December 2016. A total of 3,538 metres was drilled over 45 closed drill holes. Potential emerald bearing ore zones, which were earlier exposed in pitting and trenching exercise on the surface, were delineated along 800 metres of strike length and 50m of vertical depth. Ground preparation is underway for commencement of bulk sampling in FY 2017-18.

The Mbuva-Chibolele mine lies on the same emerald belt as Chama pit of Kagem property is, but just on the opposite side across the Kafubu River to the west. This belt of favourable TMS is popularly known as Fwaya Fwaya – Pirala Emerald belt, and is intruded by a series of pegmatites. It continues further to the west hosting other emerald producing mines such as Grizzly, Pirala and Kamakanga. The Mbuva-Chibolele mine contains over 1000m of strike length of TMS cut by pegmatites suitable for the occurrence of emeralds.

Gemfields acquired the asset in 2004 after carrying out extensive geophysical survey and diamond core drilling leading to construction of a resource model. Trial mining began at Chibolele emerald mine in July 2006 and continued over a period of eighteen months. A competent person’s report was prepared by SRK, UK in 2016 incorporating all the exploration input and auction sale of emeralds produced totalling approximately US$ 2.2m.

Kamakanga emerald concession was acquired in 2005 through a wholly owned subsidiary Gemfields Mining Ltd. It is located 5 to 6 kilometres west-southwest along the regional strike of the well-known Fwaya Fwaya – Pirala Emerald Belt from the Chama operation of Kagem property.

Although the mine is presently inactive, it produced about 8,491 kilograms of unsorted material in 1997 from which 2,965 kilograms of cleaned and graded emerald and beryl rough were produced. Recorded emerald and beryl sales by the then operating company totalled US$ 8.7 million in the five-year period from 1994 to 1999. Gemfields has carried out further drilling to establish the resources which was verified by ACA Howe International (2005) and has plans to further develop the deposit in near future.

Gemfields acquired 75% controlling interest in two ruby concessions held under the JV company Megaruma Mining Lda. The two licences, which do not border one another, each share a boundary with the existing Montepuez ruby deposit and cover approximately 19,000 hectares and 15,000 hectares respectively. The Megaruma licences are expected to provide a platform, alongside the Montepuez ruby deposit, for the expansion and development of Gemfields’ Mozambique ruby operations. The licence is currently under exploration and regulatory compliances.

Gemfields acquired 75% controlling interest in another ruby concession held under the JV company Eastern Ruby Mining Lda. The licence covers an area of 116 sq km and shares its western boundary with the southern licence of Megaruma Mining Ltd, another joint venture of Gemfields. The licence is currently under exploration and regulatory compliances.