Gemfields' Montepuez Ruby Mine to Last for Over 20 Years

Reuters reported that Gemfields plc (LSE:GEM) has confirmed that the Mozambique-based Montepuez ruby mine has sufficient reserves to last for over two decades. The company has a 75-percent stake in the mine.
As quoted in the market news:

The Competent Persons Report (CPR), which gives an official estimate of what is considered the largest deposit of rubies in the world, projects production of 432-million carats over 21 years.
The CPR split the Montepuez mine’s probable reserves into primary ore reserves of 253-million carats at a 114.9ct/t and secondary reserves of 179-million carats at a lower grade of 7.07ct/t.
It estimated indicated and inferred mineral resources at 467-million carats of ruby and corundum.
Gemfields, which also owns the famed Faberge jewellery business, plans to increase Montepuez’s capacity to 5.6-million tonnes from 3.3-million tonnes and expects about $64-million in capital spending over the next two years.

Charles Long of Sanlam Securities commented:

An impressive sized resource and good to see an economic model with very good returns from relatively modest capital.

Click here to read the full Reuters report.