Thursday, July 18, 2024

Gemfields announces discovery of potential gold reservoir in Mozambique

London-based gemstone mining company Gemfields has revealed promising results from its drilling activities at its Nairoto gold mine in Cabo Delgado province, Mozambique. According to the company, the first estimates suggest the presence of approximately 103,000 ounces of gold, with an average of more than two grams per ton, at a depth of 80 meters.

These results, coming only from the target area called TL5, represent a significant milestone for the company, which initially did not include gold mining in its long-term strategy. However, in view of these promising discoveries, Gemfields now plans to look for a suitable buyer or partner for the project in the future.

Gemfields’ managing director for Mozambique, Kartikeya Parikshya, expressed optimism about the future of the project, saying that these results are a good first step as explorations continue to better understand both TL5 and other target areas of the mine.

In addition, Parikshya announced ambitious plans to produce gold from TL5 by the end of the year, provided everything goes according to plan. However, challenges remain, especially amid the instability caused by the COVID-19 pandemic and the Islamic extremist insurgency affecting the region.

Gemfields, in partnership with Nairoto Resources, is developing the project in Cabo Delgado province, a region rich in natural resources. The company has a 75% stake in the joint venture, while the remaining 25% is held by Mwiriti, its local partner in the Montepuez ruby mine.

However, violence in the region remains a major concern. Since 2017, more than 4,500 deaths have been recorded and more than a million people, predominantly women and children, have been displaced due to Islamic extremist insurgency. This instability represents an additional challenge for the development and safe operation of Gemfields’ gold mining project in Mozambique.

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