Name of the Project
Gravelotte emerald mine (GEM).

Location
Limpopo, South Africa.

Project Owner/s
Gemstone miner 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
Gem Resources successfully completed the refurbishment and upgrades to the processing plant in December 2024.

The improvements included the installation of a double-deck vibrating washing and sizing screen, as well as other enhancements aimed at optimising throughput and minimising downtime.

During the first two weeks of operation following the upgrades, the processing plant achieved an average increase of about 45% in processing capacity. This translates to an average of about 100 t/d of ore processed.

It is estimated that, by building most of the equipment in house and working with local engineering workshops, the company has managed to achieve the upgrades at a cost-saving of about 75%, compared to buying new equipment such as the double deck sizing and washing screen.

The success of the plant upgrades has enabled the company to progress to Phase 2, with active mining operations now under way in the Cobra openpit. This marks a critical step towards securing a steady supply of high-grade ore for processing, and further enhancing the quality and quantity of the emeralds recovered.

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.