Confirming Gravelottes Potential
Summary of JORC and Competent Persons Reports for Gem Resources
Overview
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
- The Gravelotte Emerald Mine's remaining potential carats identified through JORC exploration exceed the total carats mined over its 70-year operational history.
- Total mineral resources as of 2022 are estimated at 1.9-million tonnes, yielding 29-million carats of emeralds.
- Additional exploration targets estimate a potential of 164 to 344 million carats across other parts of the licence area.
- Robust Supporting Data
- The reports include a comprehensive geological database, historical work, and site visits, providing strong support for future mining operations.
- (*Note : AC Howard has visited the site multiple times over several years and is very familiar with the area and its geology)
- Positive Financial Model Results
- An independent review of the Discounted Cashflow (DCF) model indicates strong economic viability over a 17-year mine life.
- Net Present Value (NPV): USD 22.39 million at a 10% discount rate.
- Internal Rate of Return (IRR): 76%.
- The project becomes profitable from the second year of operations.
- Capital Expenditure (CapEx): USD 2.58 million.
- Operating Expenditure (OpEx): USD 67.28 million over the Life of Mine (LOM).
- Payback Period: 2.5 years.
- Estimated total profit before tax over LOM: USD 79.5 million.
Bernard Olivier, CEO of Gem Holdings Plc QUOTE
"The ACA Howe review confirms the robust economics of the Gravelotte Emerald Mine. The high IRR and positive NPV underscore the significant potential value this project can bring to our shareholders. With the initial production startup capital expenditure completed and the mine now back in production, we are well-positioned to advance this project and capitalise on the opportunities it presents."
Additional Details
- Primary Metals/Minerals: Emeralds. Additionally, the site has potential for gold and quartz (silica) deposits, warranting further investigation.
- Resources: 1.9-million tonnes yielding 29-million carats, with further exploration targets of 164 to 344 million carats.
- Mining Method: Openpit operation with mineralisation at deeper levels.
- Infrastructure: Existing buildings, fencing, roads, accessible opencuts, low-grade dumps, a historic database, available workforce, local on-site expertise, and a nearby township.
Conclusion
The JORC and Competent Persons reports present a positive outlook for the Gravelotte Emerald Mine, highlighting larger-than-expected reserves and a wealth of supporting data. These findings position GEM Resources to successfully reactivate and profitably operate the mine.
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