INCREASED OUTPUTS Kagem produced 5.8-million carats of emerald and beryl, which was a significant improvement from the 3.9-million carats produced during the same period in 2013
Output from coloured gemstone mining and marketing company Gemfields’ Kagem emerald and beryl mine, in Zambia, and Montepuez ruby and corundum mine, in Mozambique, rose more than 40% for the three months ending December 31, compared with the same quarter in 2013.
Gemfields owns a 75% stake in the Kagem mine.
During the quarter under review, Kagem produced 5.8-million carats of emeralds and beryl, up from the 3.9-million carats produced during the same period in 2013.
The mine recorded a grading of 190 carats per ton (ct/t) of material mined, compared with 224 ct/t in the last quarter of 2013.
Gemfields attributes the “slight” decline in grades partly to bulk sampling at the new Fibolele and Libwente pits at Kagem.
The mine’s total operating costs of $11.6-million for the quarter under review were higher than the $7.2-million during the same period in 2013.
Gemfields says this was largely on account of increased mining activity that it undertook across the mine’s licence area of about 41 km2.
The fourth phase of the high-wall pushback programme at Kagem in the main Chama/F10 pit continues to be advanced by Gemfields’ in-house team and a third-party contractor.
A total of about 4.1-million tons of waste was moved during the quarter under review.
Gemfields says the slightly accelerated rate of contractor waste mining is likely to result in completion of the push-back project ahead of schedule.
“Having made a considerable contribution to the understanding of underground emerald mining conditions in Zambia, Kagem’s trial underground mining project was placed on care and maintenance during the quarter.
“The results of the pilot project will be incorporated into the ongoing study of larger- scale underground operations and the development of a detailed underground mine plan,” says Gemfields.
The company adds that an expert underground project manager has been appointed to produce a detailed underground mine plan.
Gemfields highlights that, in the interim and given the continued viability of openpit operations owing to “robust” emerald prices, Kagem has the flexibility to extend the openpit operations with further pushbacks.
Additionally, the company notes that the exploration and bulk sampling activities at the Fibolele and Libwente pits are progressing well.
However, Gemfields says illegal mining activity within the boundaries of the Kagem mining licence have not yet been fully resolved and Gemfields continues to work with key Ministries to alleviate this challenge.
Further, Gemfields’ 75%-owned Montepuez mine produced about 3.4-million carats of ruby and corundum during the quarter under review, which was up from the 2.3-million carats produced during the corresponding period in 2013.
The mine recorded a grading of 34 ct/t of material mined, which was significantly lower that 64 ct/t of material mined during the same quarter of 2013.
Gemfields explains that the grading was partially diluted as a result of the processing of some lower-grade portions of the washing plant’s stockpile.
Montepuez’s total operating costs were $5.7-million during the quarter under review, which was significantly higher than the $2.3-million incurred during the corresponding period in 2013.
The company attributed this largely to the increased mining activity across the mining licence area.
Additionally, Montepuez’s unit operating costs during the period under review were $1.68/ct, which was higher than the $1/ct incurred during the same period in 2013.
Meanwhile, Gemfields’ wholly owned luxury goods company, Fabergé, reported that during the period under review sales orders agreed – which are sales that the company agreed and confirmed with customers – decreased by 12%, compared with the same quarter in 2013.
However, Fabergé’s operating costs for the quarter under review were 5% lower than those incurred during the comparative period in 2013.
Fabergé states it will be unveiling new high-end jewellery and timepieces throughout the second half of the current financial year.
The company will be displaying some of these new pieces at the 2015 BaselWorld watch and jewellery show, taking place in Switzerland between March 19 and 26.