Name of the Project
Gravelotte emerald mine (GEM).

Location
Limpopo, South Africa.

Project Owner/s
URA Holdings.
 
Project Description
An independent desk-based review of the discounted cashflow model for the GEM has highlighted the potential profitability of the project over a 17-year mine life. 

The model is based on URA’s current inferred Joint Ore Reserves Committee- 
(Jorc-) compliant resource of 29-million carats and an allowance for a small portion of the Jorc exploration targets (up to 344-million carats), which are below the inferred resources. These are proposed to be upgraded and mined in years 14 to 17 of production, based on the significant exploration that is planned.

Mining will be conducted using conventional openpit methods, including drilling, blasting, loading and hauling, with hydraulic excavators and articulated dump trucks. The mining schedule is designed to ramp up production from 30 000 t/y in the first two years to a steady state of 90 000 t/y by Year 7.

The processing plant includes a jaw crusher, vibrating screens, trommel and an Angelon CCD colour sorter. The plant is designed to maximise recovery while minimising damage to the emeralds. The processing flow involves crushing, screening and sorting, followed by secure storage of the emerald concentrate.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The review forecasts a pretax net present value, at a 10% discount rate, of $22.39-million and an internal rate of return of 76%, with a payback of 2.5 years.

Capital Expenditure
$2.58-million.

Planned Start/End Date
Not stated.

Latest Developments
URA Holdings has postponed the first trial-sale of emeralds in Thailand, owing to the delay in clearance of one of two parcels to be offered for sale.

URA exported about 45 000 ct of emeralds from South Africa to Bangkok in two batches, or parcels, in preparation for the sale. 

Once the second batch is cleared, both parcels will be stored at Bonas Group's facilities, in Bangkok. URA will continue to export emeralds to Bangkok, with all carats to be offered for sale during Bonas's next independent emerald auction.

Key Contracts, Suppliers and Consultants
ACA (Howe International financial model).

Contact Details for Project Information
URA Holdings, tel +44 746 368 6497 or email info@uraholdingsplc.co.uk.