TIDMRLD
RNS Number : 0735Z
Richland Resources Ltd
24 May 2016
24 May 2016
Richland Resources Ltd
("Richland" or "the Company") (AIM: RLD)
Quarterly Operational and Sales Update
Richland Resources Ltd, the gemstones producer and developer,
today announces its quarterly operational, sales and market update
for Q1 2016. All figures are unaudited.
Highlights
-- US$231,739 total revenue achieved from the sale of
approximately 332,333 carats of lower quality sapphire and
corundum
o Average price per carat of US$0.70 per carat achieved for
lower the quality sapphire and corundum
-- 415,456 carats produced during Q1 2016 as part of production and ramp-up process
34,603 tonnes of sapphire bearing alluvials mined and
processed
o Production and processing scheduled to fit in between various
shut-downs to enable large infrastructure upgrades, plant and other
operational improvement and modification works
-- Average grade of 12 carats per tonnes achieved
-- Significant improvements made to all aspects of the operation
including, processing plant, tailings dam and water retreatment
infrastructure, mining operations and sorting facility in order to
allow ramp-up beyond 800,000 carats per quarter from Q3 2016
-- Continue to build and develop long term sales channels for
over 120 different categories of the production profile
-- Re-launch of online sales division, www.richlandgemstones.com
with direct-from-mine sapphires is on schedule for Q2 2016
o Selection of unique and exotic sapphires from mine production
prepared for sale on website
Post Period
-- Higher quality sapphire sales of 924 carats at US$15.91 /
carat achieved from test sale of a combination of green,
blue-green, blue and multi-coloured stones
-- Continued sales of lower quality sapphire and corundum mined prior to Q2 2016
o US$158,812 total revenue achieved from sale of 50,065 carats
of lower quality sapphire and corundum during Q2 to date
o Average price per carat of US$3.17 achieved
-- Majority of infrastructure work, modifications and
improvements completed to allow for ramp-up to above 800,000 carats
per quarter
-- Increased sales of material already mined, sorted and graded
is scheduled during the remainder of Q2
-- Phase 1 JORC Resource work completed and with final independent report expected in Q2 2016
Commenting on the results, Chairman, Edward Nealon said: "Q1 was
in a sense a breakthrough period as we used all of the knowledge
and data gathered to date to implemented major changes and
improvements across all aspects of the operations. From the start
we decided to develop and optimise all aspects of the operation,
from mining, processing, sorting and grading to sales and
marketing, while in production and revenue producing. I believe we
are making good progress on both the operational front as well as
on the development of our sales and marketing channels. We continue
to develop the project ahead of target and with very strict cost
control."
For more information please contact:
Bernard Olivier Edward Nealon Mike Allardice
Chief Executive Chairman Group Company Secretary
Officer +61 409 969 955 +852 91 864 854
+61 4089 48182
Laurence Read Nominated Advisor Broker (AIM)
Corporate Development (AIM) Shore Capital
and Communications RFC Ambrian Limited Jerry Keen (corporate
Officer Stephen Allen broking)
+44 (0) 20 3289 +61 (0) 89480 Toby Gibbs / Mark
9923 2507 Percy (corporate
finance)
+44 (0) 20 7408
4090
Further information is available on the Company's website:
www.richlandresourcesltd.com. Neither the contents of the Company's
website nor the contents of any website accessible from hyperlinks
on the Company's website (or any other website) is incorporated
into, or forms part of, this announcement.
Q1 2016 Operational and Sales Update
Capricorn Sapphire Ramp-up and Schedule
The first quarter of 2016 saw a comprehensive optimisation
programme implemented across all components of the Capricorn
Sapphire ("Capricorn") project. The programme was created following
analyses of data from the 2015 initial production operations.
During Q4 2015 the Capricorn mine achieved almost 3 times its
original target of 250,000 carats for the quarter by producing
720,000 carats from the processing of 52,266 tonnes of sapphire
bearing alluvial gravels. The significant increase in production
was implemented in order to identify areas for modification and
improvement to allow production levels to surpass the 800,000
carats per quarter level on a consistent basis.
Key elements to the optimisation programme are as follows:
-- Redesign of tailings treatment and water recirculation circuit and its infrastructure
-- Infrastructure construction and modifications commenced and were completed post period end
-- Processing plant changes were made to improve efficiencies
and reduce double handling of material. Modifications were made to
the primary jigs, scrubber system and feedbin to improve processing
efficiencies and their ability to treat different gravel
compositions.
-- A new pilot testing plant was constructed and commissioned to
allow run of mine testing as part of the ongoing mine planning and
mine development process.
Production and Sales
Sapphire production totalling approximately 415,456 carats was
achieved in the first quarter of 2016 as part of the mine ramp-up
process. A total 34,603 tonnes of sapphire-bearing alluvial gravels
were extracted and processed at an average grade of approximately
12 carats per tonne. Mining and processing were scheduled to occur
whenever possible between the construction and improvement work.
Despite the significant construction, modification and
infrastructure work conducted during the period the total carats
produced during Q4 2015 and Q1 2016 of 1.14 million carats remain
above the planned production ramp up schedule over the period.
US$231,739 total revenue was achieved from the combined sale of
approximately 332,333 carats of lower quality sapphire and corundum
at an average price of US$0.70 per carat.
Ongoing rehabilitation of areas disturbed by the mining
operations continues as part of the operations. Additional
voluntary rehabilitation work has also been done to historically
disturbed areas as part of the Company's commitment to responsible
and ethical mining.
Post Period End
The majority of required construction, modification and
infrastructure work has been completed to enable operations to
surpass 800,000 carats per quarter production levels. Following the
reporting period sales of approximately US$173,512 of material were
concluded. The sales comprised of:
o 50,065 carats of lower quality sapphire and corundum at an
average price of US$3.17 / carat
o 924 carats of higher quality sapphire at an average price of
US$15.91 / carat as part of a test sale of a combination of green,
blue-green, blue and multi-coloured stones
Outlook
The Company continues to build various sales channels with the
objective of enabling it to achieve the best possible prices for
its material and also to develop markets and buyers for its entire
range of production that covers over 120 different categories of
material with different grade, size and value characteristics. The
Company believes it has made good progress with its marketing,
sales and brand development and is progressing opportunities to
develop larger structured sales including potential sights,
auctions or larger specialised parcel sales and run of mine sales
agreements. Increased sales are currently scheduled for the
remainder of Q2 2016 for material already mined, processed, sorted
and graded.
The Company has set a ramp-up target of 600,000 carats for Q2
2016 which takes into account the reduced mining and processing
that occurred during the quarter to date while the operational
upgrades, modifications and infrastructure work were completed.
The online retail division, www.richlandgemstones.com is
currently on track for its re-launch in Q2 2016 with a range of
unique exotic coloured sapphires directly from the Capricorn mining
operation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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