Message Jeu 12 Mar 2015 10:04

6 months ended 31/12/2014

http://gemfields-corporate.s3.amazonaws ... 1425884185

Kariba Minerals Limited, Zambia
Kariba Minerals Limited (“Kariba”) is the world’s single largest operating amethyst mine and continues to
account for a material proportion of global amethyst reserves. The deposit is located in the Southern Province
of Zambia in the Mapatizya district and covers 253 hectares. In 2013, the Government of the Republic of
Zambia elected to transfer its 50% stake in Kariba (with Gemfields owning the remaining 50%) to ZCCM
Investments Holdings plc (“ZCCM-IH”), in which the government owns approximately 87%.
The Kariba deposit comprises 10 active or semi-active pits producing a different mix of grades. Production is
adapted in line with prevailing market demand for particular sizes and qualities. The Curlew North, Francis
West and Cha Cha pits have been actively developed and mined during the period. The positive bulk sampling
results achieved from the Cha Cha pit has meant that this previously virgin area is now an actively producing
Production of amethyst increased significantly during the period to 574,000 kg (2013: 223,000 kg).
Approximately 8,000 tonnes of ore were processed by the washing plant, with the highest recoveries achieved
from the Curlew pit.
A total of 510 kg of medium and commercial grade amethyst was sold during the period for US$750,000, with
the higher grade amethyst being retained for sale at auction. From 24 to 27 February 2015, this higher grade
amethyst was sold, alongside emerald and beryl, at an auction in Lusaka, Zambia, generating revenues of US$
450,000 from 25.2 million carats of amethyst.
A new exploration programme is being put in place for 2015 to confirm and re-estimate the mineral resources
available at the Kariba mine.
Kariba’s key operational parameters for the period are summarised below:
Kariba production summary
Six months to
31 December
Six months to
31 December
Gemstone production (amethyst - all grades) in tonnes 574 223
Ore production in tonnes 11,825 3,500
Grade (kg of amethyst per tonne of ore) 49 64
Waste mined in tonnes 146, 640 99,580
Stripping ratio 12 28
Kariba is actively working towards a long-term cost-effective solution for energy supply and has initiated an
Environmental Project Brief (EPB) for a 1 MW solar farm in conjunction with an Australian solar supplier and
the Zambian national electricity company, ZESCO. The project has two primary goals: to supply Kariba with
more cost-effective electricity and to offer excess capacity to the local community at a rate that will be
subsidised by the Zambian Government. Kariba will lease a portion of its land (two hectares) to the project in
order to accommodate the construction of the solar plant. The Australian solar supplier will fund construction
and Kariba will sign an off-take agreement to purchase electricity.
The first phase of a new CCTV system was successfully deployed during the period and is now fully
operational, with 15 cameras monitoring key areas including the sort house, washing plant and stores. Coverage
of a more extensive surveillance area is being planned for 2015.
These infrastructure upgrades serve to further increase mining volumes and operational efficiencies at Kariba.