The Gravelotte
Emerald Mine
Limpopo Province of South Africa
A Rich History
The discovery of the Gravelotte Emerald Mine in 1927 marked the beginning of extensive emerald mining activities in the region. During its peak in the 1950s and 1960s, Gravelotte emerged as one of the world's largest emerald mines, employing over 400 sorters. From 1929 to 1982, the total recorded emerald production from Gravelotte and the surrounding area, including the nearby Gravelotte township, amounted to nearly 113 million carats.
Large-scale production at Gravelotte ceased in 1986 due to management's inability to secure the southern extension of the ore body, leading to the mothballing of extensive infrastructure. The emeralds mined here are renowned for their vivid colour and varying quality, and are typically consistently small to medium in crystal size.
Gravelotte has reportedly provided a total of 112.7 million carats of emeralds over the life of its operations, with operations in the early 1980s reportedly yielding a recovered grade in excess of 6g/t (30 carats/t) of exportable emerald. While a complete historical data package is not available, the sourced data has instilled high confidence for the projected redevelopment of Gravelotte.
A Bright Future
Gem Resources is committed to revitalising the mine, integrating advanced mining technology to unlock untapped emerald reserves and enhance production efficiency, all while prioritising environmental sustainability. We are proud to have partnered with the local community, who own a 26% share, and we have a "locals first" employment policy. Our team is 100% South African.
Project Overview
Gravelotte is currently positioned for staged mining operations, leveraging established infrastructure and extensive historical data, representing a medium-term production opportunity. Much of the extensive mine site infrastructure has recently been refurbished or upgraded in preparation for recommencing operations. Recent installations of new equipment by Gem Resources, including a processing plant and optical sorter, enhance operational capabilities, and trial production has started.
Establishing Small-Scale Production for Initial Cash Flow
The company's immediate focus is on refurbishing the mine and swiftly resuming small-scale production to generate positive cash flow. This strategic approach allows for future exploration of the broader license area once production operations are well-established.
Gravelotte's Assets Include:
- Existing infrastructure, including granted Mining Licences and Permits, provides a straightforward pathway to near-term production.
- Established resources such as accessible open cuts, extensive low-grade dumps, and a comprehensive historic database support operational efficiency.
- Local onsite technical expertise, an available workforce, and a nearby township serving as a supply centre contribute to operational readiness.
Overall, minimal capital expenditure is required compared to typical greenfields project development, resulting in attractive project economics.
Summary of JORC and Competent Persons Reports for Gem Resources
Recent reports, including the JORC Report and the Competent Persons
Report by AC Howard, have highlighted significant findings at the Gravelotte Emerald Mine. These reports provide a comprehensive evaluation of the mine's economic viability and mineral resources.
Key Highlights from the JORC and Competent Persons Reports
- Larger-than-Expected Mineral Reserves
- Robust Supporting Data
- Positive Financial Model Results
Gem Resources has partnered with Bonas Group to exclusively auction Gravelotte's stones. Bonas Group is a prominent tender house in the rough gemstone industry, conducting successful auctions for various gemstone producers globally. This strategic partnership recognises the complexities of wholesale rough gemstone sales and allows Gem Resources to keep the team lean and focused on scaling up mining and processing operations.
Responsible Mining & Sustainability
Rough Emerald Sales &
Auctions
Rough Emerald Sales: Gem Resources and Bonas Group Partnership
Gem Resources has partnered with Bonas Group to exclusively auction Gravelotte's stones. Bonas Group is a prominent tender house in the rough gemstone industry, conducting successful auctions for various gemstone producers globally. This strategic partnership recognises the complexities of wholesale rough gemstone sales and allows Gem Resources to keep the team lean and focused on scaling up mining and processing operations.
Role of Bonas Group:
- Manages final sorting, valuation, and marketing of the rough emeralds to the wholesale market. Oversees the entire sales process, ensuring security, transparency, and compliance.
Sales Process:
- Market testing of Gravelotte emerald is expected to commence in late 2024 - when the rough will be included in an emerald rough auction which Bonas Group will hold in Bangkok, a major trading hub for rough gemstones.
Guaranteed Provenance
The collaboration also maintains a closed chain of custody that guarantees the provenance of our stones and provides peace of mind to buyers who aim to be sustainable and ethically conscious. The partnership also means Gravelotte's emeralds will be traceable back to their origins, ensuring exceptional quality and adherence to the strictest ethical mining standards.
Responsible Mining
& Sustainability
Gem Resources has implemented several initiatives to promote environmental sustainability and responsible mining practices at the Gravelotte emerald mine in South Africa. These initiatives include:
Water Sustainability Management: Enhancing the site's water supply, infrastructure, and storage capacity to ensure efficient water use in processing operations and reduce waste. Water is recirculated, recycled, and reused.
Land Restoration and Waste Management: Rehabilitating 1.5 hectares of historical gold slime tailings and tainted soil, mitigating environmental impact and erosion from previous mining activities. 80% of previously environmentally damaged areas have now been rehabilitated.
Chemical-free Processing and Refining: Implementing a chemical-free process for processing and refining emerald rough, aiming to reduce environmental impact.
Smart Energy Infrastructure Improvements: Enhancing the main electrical infrastructure and site security, along with upgrading dewatering and screening systems. These improvements are aimed at optimising energy use and ensuring safe and efficient operations.
Community Partnerships: The company is proud to have partnered with the local community, which holds a direct shareholding in the mine through a 26% Community and Black Economic Empowerment trust structure (BEE). This partnership ensures mutual benefit and supports a "locals first" employment policy, with the mine currently being 100% staffed by local South Africans.