JOHANNESBURG (miningweekly.com) – Aim-listed Richland Resources has kicked off the final stage of its production ramp-up to bring output at the Capricorn Sapphire mine, in Australia, to 1.2-million carats a quarter by the end of the second quarter of this year.
The gemstones producer also has plans to start its beneficiation programme, with sales of treated, cut and polished material, in addition to the ongoing sale of rough, untreated material, in the first quarter of the year.
“The first quarter of 2017 will see the first polished and cut Australian sapphires from our operations being made available to wholesalers,” said Richland CEO Bernard Olivier in a quarterly update to shareholders on Monday.
Richland had, during the fourth quarter of 2016, secured the preferential use of a specialist sapphire heat treatment facility, in Chanthaburi, Thailand, for Capricorn's product, on a fixed price per carat contract basis, as well as the preferential use of a Bangkok-based cutting and polishing facility, also on fixed price per carat terms.
“Our clear focus for 2017 is to develop sales, aggressively manage costs and develop margins to achieve first profit from our coloured gemstone mining operations,” he said.
This followed the successful equity fundraising of £1-million gross at 0.75p a common share and the output of 839 898 ct as part of the production and ramp-up process during the fourth quarter of 2016.
During the three months under review, Sapphire delivered an average grade of 16 ct/t from 51 376 t of mined and processed alluvial material.
Some $535 000 in revenue had been generated from the sale of 857 000 ct of predominantly rough and untreated sapphire and corundum at an average price of $0.62/ct.
“I am pleased to report that operations at the Capricorn Sapphire mine are going from strength to strength and our new sales strategy, only adopted in the fourth quarter of last year, is already realising tangible benefit,” Olivier stated.