Mustang Resources

Gemfields has established a joint venture company with Mozambican registered Mwiriti Limitada, to explore and progress opportunities arising from 12 Greenfield licences presently held by Mwiriti.

Mozambique - The new joint venture company will be incorporated in Mozambique with Gemfields owning 75% and Mwiriti 25%. Mwiriti is Gemfields’ existing partner in Montepuez Ruby Mining Limitada (MRM) where Mwiriti also owns 25%.

Under the terms of the joint venture agreement, Gemfields will contribute its proven exploration and project development experience together with appropriate financing with a view to building on the successes achieved in Mozambican rubies, where Gemfields and Mwiriti’s collaboration brought considerable benefits for both the regional economy and local communities.

Mwiriti will contribute six applications for mining concessions and six exploration licences for gold and assorted minerals. It will receive from the joint venture an advance payment of US$3 million against Mwiriti’s share of future earnings arising from the operations of the new joint venture.

The licences, which begin as little as 20 km from MRM’s existing operations, include an extension of the known Montepuez ruby belt with both secondary gold incidence and primary corundum mineralisation having been observed.

Sean Gilbertson, Gemfields’ CEO, says:

“While the opportunities are early stage, secondary gold mineralisation has been observed and recovered in small quantities from several areas within the licence portfolio and these will therefore constitute our key focus in the year ahead.”

“Gemfields remains a company focussed on emeralds, rubies and sapphires mined in Africa. However, given their proximity, the relative ease of mobilisation, our longstanding relationship with Mwiriti and the mineralisation observed onsite to date, we feel it is important to fully investigate the possible upside potential of these licences for our shareholders.”