JOHANNESBURG (miningweekly.com) – Gemstone producer Richland Resources on Monday announced that it had started work on the refurbishment of the plant at its newly acquired sapphire project in Queensland, Australia.

The company had also changed the name of its Australian operating subsidiary to Capricorn Sapphire and, subsequently, renamed the project Capricorn Sapphire to reflect the close proximity of the Tropic of Capricorn and the Capricorn Highway located south of the mining operation.

The refurbishment work would be centred on recommissioning the purpose-built alluvial processing plant, which was specified as being capable of treating up to 200 m3/h of loose product, potentially resulting in yearly production of 20.8-million carats of sapphire.

Meanwhile, the company said its plan of operations for Capricorn Sapphire had been approved by the Department of Environment and Heritage Protection in July, and that it had, subsequently, lodged the required financial assurance bond with the Department of Natural Resources and Mines in Queensland.

"The Queensland government has efficiently reviewed all our submissions and awarded Richland with the necessary permissions to start redevelopment work at the Capricorn Sapphire mine.

“We have now implemented our redevelopment plan and are scheduled to commission production by the first quarter of 2015. In the meantime, our marketing and sales teams are working to develop customer relationships ahead of first sight sales,” Richland CEO Bernard Olivier said.

The Capricorn Sapphire project comprises two new mining leases of about 490 ha.

The mining leases contain a Joint Ore Reserves Committee-compliant measured resource of about 21.6-million grams, or 20.8-million carats, of sapphire, based on extensive exploration and a brief period of mining by the previous owners.