In an operational update for the three month period ending 31 March 2015, London-based Gemfields reports that its 75 %-owned subsidiary, Kagem Mining Limited in Zambia, produced 9,9 million carats of emerald and beryl (versus 3,6 million carats in the quarter ending 31 March 2014) at the Kagem emerald mine south of Kitwe.
The average grade was 355 carats per tonne (versus 198 carats per tonne in the quarter ending 31 March 2014), a 79 % increase. Total operating costs of US$9,8 million were recorded (versus US$6,6 million in the quarter ending 31 March 2014), largely on account of the increased scale of mining activity being carried out across the mining licence.
Operations in the main Chama pit at the Kagem emerald mine (photo: Arthur Tassell).
The fourth phase of the high wall pushback programme in the main Chama pit continues to be advanced by both Kagem's in-house team and a third party contractor. A total of approximately 4,0 Mt of waste was moved during the quarter, with a slightly accelerated rate of contractor waste mining now likely to result in completion of the push-back project ahead of schedule.
Kagem's trial underground mining project was placed on hold towards the end of 2014. In the interim, and given the continued viability of open-pit operations, supported by the robust emerald prices and well contained unit costs, Kagem says it enjoys a high level of flexibility to continue to extend the open-pit operations through further pushbacks.
Gemfields also owns 75 % of Montepuez Ruby Mining Limitada in Mozambique. During the quarter approximately 1,4 million carats of ruby and corundum were extracted (versus 1,1 million carats in the quarter ending 31 March 2014) at the Montepuez ruby mine.
Ian Harebottle, CEO of Gemfields, commented: "This quarter has once again delivered pleasing results for Gemfields. We have achieved considerable increases in production volumes at both the Kagem and Montepuez mining operations, underpinned by constant growth in market demand for these products as is evidenced by the ongoing successes achieved at our auctions, all of which validates our decision to expand the scale of the operations across our key sites."
