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.

Since June 1, the government has banned the purchase and transport of coal without the proper license. If the measure is not complied with, the offender will be arrested and sentenced to between one and five years in prison.

According to an article published this Wednesday, June 5, by the news portal Carta de Moçambique, the information is contained in Law no. 17/2023 of December 29 on Forests and Wildlife, which came into force on June 1.

According to the website, article 77(1) of the law states that anyone who cuts, extracts, fells, transports, acquires, stores, sells and exhibits wood, charcoal and other forest resources without a license or without complying with the established conditions, shall be punished with imprisonment of one to five years and a corresponding fine.

“Until proven otherwise, forest resources are presumed to have been extracted or felled by the person who transports them or is in possession of them,” the law states.

The same article establishes that anyone who commits the crime of disobedience or fails to obey the lawful orders of the forest inspector, sworn inspector or other competent public authority will be punished under the terms of the criminal law in force.

Article 79 also stipulates that those who exploit or process timber forest products with instruments, prohibited means or inappropriate techniques, and those who store forest products in joints, yards, warehouses or yards without observing the legally established conditions, will be punished.

This law prohibits the transfer of rights to exploit forest products without complying with the legally established conditions. It should be noted that Law no. 17/2023 of December 29, which came into force on June 1 and repeals Law no. 10/1999 of July 7, establishes the basic principles and rules on the protection, conservation and sustainable use of forest and wildlife resources.