GEMFIELDS GROUP LIMITED - Update: Gemfields Ethiopia Operations

Release Date: 01/08/2018 15:11
Code(s): GML
 
Wrap Text
Update: Gemfields’ Ethiopia Operations

GEMFIELDS GROUP LIMITED 
(formerly Pallinghurst Resources Limited) 
(Incorporated in Guernsey) 
(Guernsey registration Number: 47656) 
(South African external company registration number 2009/012636/10) 
Share code on the BSX: PALLRES      ISIN: GG00BG0KTL52 
Share code on the JSE: GML 
("Gemfields" or the "Company") 
 

Update: Gemfields’ Ethiopia Operations 
 
Gemfields previously advised that the emerald bulk?sampling operations of Web Gemstone Mining plc (“WGM”), 
an Ethiopian company in which Gemfields holds a 75% interest, were overrun by a mob (estimated at between 
300 and 500 persons) on 29 June 2018. 
 
WGM’s employees, contractors and service providers were safely evacuated on the same day, with two 
members of the WGM team suffering minor injuries at the hands of the mob, both of whom have since made 
full recoveries. 
 
Gemfields has been advised that the following events occurred yesterday, on 31 July 2018: 
 
      a. The gemstone sort?house, constructed using 40?foot shipping containers, was breached (with several 
          of the perpetrators sustaining injuries arising from the methods deployed in breaching the structure); 
      b. The safe within the sort?house has been compromised and the emeralds contained in it looted; 
      c. The equipment and instruments in the sort house have been looted; 
      d. WGM's residential camp has been ransacked; and 
      e. The police present on the site sought to resist these developments, but were overwhelmed and have 
          since abandoned the site. 
 
Gemfields has also been advised that the site has seen a significant influx of firearm?bearing illegal miners and 
handlers. 
 
WGM continues to liaise with local and national authorities. 
 
Gemfields acquired its stake in WGM in February 2015. WGM holds an emerald exploration licence with a total 
concession area of 200km2 with 27 kilometres of potential emerald?mineralised strike length. WGM first 
established its operations on site in June 2015 and has to date been conducting exploration and core?drilling, 
with bulk?sampling operations commencing in August 2017. 
 
Additional information about Gemfields  
 
Gemfields is a world leading supplier of responsibly sourced coloured gemstones. Gemfields is the operator and 
75% owner of both the Kagem emerald mine in Zambia (believed to be the world’s single largest producing 
emerald mine) and the Montepuez ruby mine in Mozambique (one of the most significant recently discovered 
ruby deposits in the world). In addition, Gemfields also holds controlling interests in various other gemstone 
mining and prospecting licenses in Zambia, Mozambique, Ethiopia and Madagascar.  
 
Gemfields’ outright ownership of Fabergé ? an iconic and prestigious brand of exceptional heritage ? enables 
Gemfields to optimise positioning, perception and consumer awareness of coloured gemstones, advancing the 
wider group’s “mine and market” vision. 
 
 



Gemfields has developed a proprietary grading system and a pioneering auction and trading platform to provide 
a consistent supply of coloured gemstones to downstream markets, a key component of Gemfields’ business 
model and has played an important role in the growth of the global coloured gemstone sector. 
 
Further information on Gemfields Group Limited can be found at www.gemfieldsgroup.com. 
 
For any press enquiries please contact us on investor.relations@gemfields.com.  
 
 
Guernsey 
1 August 2018 
 
Sponsor 
Investec Bank Limited 

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