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Highlights:
- Processing capacity at Gravelotte emerald mine increased by 45% to 100 tonnes per day.
- Cost-saving measures achieved a 75% reduction by upgrading equipment in-house.
- Active mining has commenced at Cobra Open Pit as the project enters phase 2 of ramp-up operations.
Gem Resources PLC (LSE:GEMR) has announced successful advancements in its operations at the Gravelotte emerald mine in South Africa, highlighted by significant upgrades to its processing plant and the commencement of active mining at the Cobra Open Pit. With a series of improvements and careful financial management, the company is moving forward with the second phase of its operational ramp-up.
Increased Processing Capacity and Cost Efficiency
The company revealed a 45% increase in the processing capacity of its Gravelotte plant, which now averages approximately 100 tonnes of ore processed daily. These gains follow a series of plant upgrades that were completed in-house, allowing the company to save 75% of the costs compared to purchasing new equipment.
Chairman Ed Nealon underscored the significance of these savings, highlighting the company's commitment to remaining debt-free while maintaining strict cash controls.
Phase 2 of Ramp-Up and Active Mining
Gem Resources has now transitioned into phase 2 of its ramp-up operations, with active mining commencing at the Cobra Open Pit. This marks a pivotal stage for the company as it seeks to enhance production rates and improve the quality of emeralds recovered.
The mine is currently entering its seasonal shutdown, with operations scheduled to resume on 6 January. Once reopened, the company will focus on stabilizing high-grade ore supply to sustain its processing operations.
Outlook for Future Operations
The company remains optimistic about the next stages of development at Gravelotte. By improving operational efficiency and maintaining financial discipline, Gem Resources aims to ramp up production while recovering higher-quality emeralds.
Nealon stated, "We are pleased to report positive progress in both our mining and processing operations with the production line now performing reliably and active mining commencing in the Cobra Open Pit. The next phase will be critical in further ramping up production, improving the quality of the emeralds recovered, and establishing a steady supply of high-grade ore for processing."
With these advancements, Gem Resources is positioned to strengthen its presence in the global emerald market while ensuring operational sustainability and cost-effectiveness.
