Kagem targets high production levels

AN independent report by consultancy firm SRK shows that Kagem Mine is set to produce 1.1 billion carats over a 25 year mine life, which is more than initially anticipated.

The company said the total amount of indicated and inferred mineral resource at the emerald mine is now estimated at 1.8 bn carats worth of the green gemstone and beryl.

According to SRK, the company needs to spend US$84 million over the first four years of the project, and a total of $516 million over Kagem mine’s lifespan to create an operation that will initially process around 90,000 tonnes of ore per year.

It said by 2018, output would ramp up to 180,000 tonnes per year, as it will add the Fibolele pit to the project.

 

Over its mine life, Kagem is now expected to produce 44.7 million carats per year on average.

Gemfields said it would continue exploring the asset over the next few years to determine the further resource potential.

“As I have said on many occasions over the past few years, this operation has a bright future, is still maturing as an established producer, with much more yet to come,” said Chief Executive Ian Harebottle.

This is contained in the latest Mining News publication.

SRK said the total amount of indicated and inferred mineral resource at the emerald mine, 75 per cent owned by Gemfields, is now estimated at 1.8 bn carats worth of the green gemstone and beryl.

Gemfields shares were up 3.3 per cent to 61.97 pence per share on Wednesday last week, closing at 61 pence.

In the first six months of the year 2015, Kagem emerald mine, in Zambia, delivered 8.1-million carats of emerald and beryl in the quarter ended June 30, lifting output for the full 2015 financial year to 30.1-million carats of emerald and beryl.

This was comparable with the 6.2-million carats of emerald and beryl produced in the fourth quarter of the previous year, which boosted 2014 full-year output to 20.2-million carats of emerald and beryl.

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