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GEMFIELDS GROUP LIMITED - Gold exploration joint venture in Mozambique

Release Date: 26/06/2019 11:45
Code(s): GML     PDF:  
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Gold exploration joint venture in Mozambique

(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: GML.BH ISIN: GG00BG0KTL52
Share code on the JSE: GML
("Gemfields" or the "Company")

Gold Exploration Joint Venture in Mozambique
Gemfields is pleased to announce that it has agreed to establish a joint venture company with Mwiriti Limitada
('Mwiriti'), a Mozambican registered company, in order to explore and progress opportunities arising from 12
greenfield licences presently held by Mwiriti. 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. Mwiriti will receive from the joint venture an advance payment of USD 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 kilometres 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

Sean Gilbertson, Gemfields’ CEO, said:

“We have enjoyed a sound and successful partnership with Mwiriti at the Montepuez ruby mine and we look forward
to furthering our joint understanding of these new licences. 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.”

Additional information on 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

For any press enquiries please contact us on

26th June 2019

Investec Bank Limited

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