Name of the Project
Gravelotte emerald mine (GEM).

Location
Limpopo, South Africa.

Project Owner/s
Gem Resources, formerly 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. 

Production at GEM has largely been from the two linear openpits, the north easterly trending Cobra pit (the bulk of production) and the adjacent Discovery pit with an east-west strike

The model is based on Gem Resources’ 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
Phase 1 of the restart at the Gravelotte emerald mine has been under way for about six months, Gem Resources has said.

During this period, the company has processed about 5 500 t 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 capitalise on these findings, Gem Resources 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.

This initiative is aimed at improving recovery rates and minimising delays caused by equipment downtime.

Additionally, general site infrastructure has been systematically upgraded since the start of Phase 1.

A major improvement involves replacing the current screening trommel with a custom-made double-deck vibrating washing and sizing screen. The new screen will be calibrated and fine-tuned after installation.

The new screen's robust design and larger capacity are projected to significantly increase daily processing volume and reduce downtime.

In Phase 1, the material processed has primarily been from stockpiles and tailings, while some material, removed as part of the preparation for the start of mining activities in the Cobra and Discovery openpits, has also been processed.

Gem Resources has said that preparations for the start of mining in the Cobra and Discovery openpits 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.

Upon completing the planned processing plant upgrades, Gem Resources will initiate active mining in both openpits.

The company has indicated that the next phase will be a critical step in further ramping up production, improving the quality of the emeralds recovered and establishing a steady supply of high-grade ore for processing.

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

Contact Details for Project Information
Gem Resources, tel +44 746 368 6497 or email info@gemresources.co.uk.