TanzaniteOne collects over 4bn/- on gemstones

TanzaniteOne Miners
Richland Resources, owned TanzaniteOne, has revealed that it sold more than US$3 million (4.8bn/-) worth of gemstones at the Arusha fair in April.

In its first quarter report, Richland said it produced 533,400 carats during the first three months of the year from 10,488 tonnes of material at an average grade of 51 carats per tonne.

The company said the reduction in grade is due to increased development and infrastructure work conducted during the quarter.

This year Richland is targeting production of 2.5 million carats and it believes that revenues will be in line with or surpass what it achieved in 2011.

Sales were restricted to US$1.5 in the first quarter to allow for sales during the Arusha International Gem, Jewellery and Minerals Fair, which took place in April and resulted in sales of over US$3 million compared with the total of US$3.96 million reported for the entire first quarter of 2011. The Arusha sales will be recognised in the second quarter results.

“The company is very pleased with the success of the Arusha gem show in Tanzania and looks forward to reporting the final sales figures achieved during the show in our next operational update,” said chief executive of Richland Bernard Olivier.

Richland has also upgraded the indicated and inferred resource estimate at its Merelani tanzanite mine during the quarter. The resource now stands at 105 million carats including 30.6 million carats in the indicated category.

In the meantime, the tsavorite pilot sampling that started in the second half of 2011 continued with 19 pilot samples excavated and processed during the quarter.

The results of the 19 pilot samples plus the previous 72 pilot samples have identified areas for large scale bulk sampling of over 50 cubic meters each.

The first bulk sample was also completed during the quarter with four samples processed.
The sampling is aimed at establishing a grade and value per carat for the gemstones located within the current maiden resource

In other news, Richland has decided to extend its option to acquire the Australian sapphire project until the end of August this year due to the protracted process of listing on the Dar es Salaam Stock Exchange.

“Our listing on the DSE and the review and approval of our prospectus is taking longer than expected but we are in continuing discussions to try and get our dual listing on the DSE completed as soon as possible,” said Olivier.
Source: The Citizen,http://www.thecitizen.co.tz

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