Swanepoel, in delivering an operational and sight sales update, said that the average per carat tanzanite price sold at the company’s July sight was 18,7% higher than at the April sight.

The July sight coincided with the opening of the Dubai office and the subsequent closure of the Johannesburg office.

The London Aim-listed company, which mines in Tanzania, said that it had sold all the parcels that it had offered at its second sight in Dubai, raising $2,01-million and taking the total sales for the year so far to $6,92-million.

The six parcels contained 52 475 ct – 10 495 g – which were sold at $38/ct. The company’s retail outlet, the Tanzanite Experience (TTE), which is based in Arusha, Tanzania, has sold tanzanite totalling $0,6-million in the year to date.

A second TTE outlet has been opened in Arusha and a TTE visitors centre will be opened at the mine in August.

The company produced 467 796 ct in the second quarter, bringing the total production to the end of July to 1 020 744 ct. Production at the end of June was 867 381 ct and the company said that it was still on track to produce 1,7-million carats for the year.

The use of technologically advanced processing and sorting methods was enabling the mining operations to maintain positive margins, despite the downturn in tanzanite prices.

Only selected areas were being mined and the workforce was being scaled back.

Tsavorite

On-site preparation for the bulk sampling of tsavorite coloured gemstones restarted in July, when $1-million of the placing proceeds from the company’s $5,5-million private placement was allocated to the sampling and a scoping of the company’s proposed tsavorite projects.

“We are confident that, if a continuation of the increase in demand and price for tanzanite that was experienced over the last quarter can be maintained for the rest of year, the company will return to profitability by the end of 2009,” Swanepoel said.

The former GM of the Tsumeb mine, in Namibia, Nick Hughes, had been appointed GM of TanzaniteOne Mining, the company said.

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