Aim-listed Gemfields has acquired a controlling stake in a Mozambique ruby deposit with first production expected later this year.
The gemstone miner said that the conditions of the agreement had been satisfied and the Mozambican government had formally issued the licences, which were valid for 25 years, to Montepuez Ruby Mining Limitada, in which Gemfields holds a 75 percent interest.
“We will now initiate additional bulk sampling and diamond drilling of the area and expect our first production later this year," said Gemfields chief executive Ian Harebottle in a statement.
The project comprised mining and exploration rights covering about 34 000 ha and was believed to be one of the largest privately owned ruby concessions in the world, it said.
Gemfields said it intends to initiate additional bulk sampling and diamond drilling of the area.
"This is a particularly exciting development for Gemfields and we are thrilled to add rubies to our emerald and amethyst portfolio,” said Harebottle.
Mining had previously taken place in the area on a relatively small and informal scale.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
