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10 Sep 2007 07:00
10 September 2007 Gemfields Resources PLC ("Gemfields" or "the Company") Jagoda Option Extended
Gemfields Resources PLC (AIM: GEM), the AIM-listed Zambian gemstone mining and exploration company, today announces that it has extended the period of its option to acquire the Jagoda Pink Tourmaline Mine.
Gemfields initially paid US$50,000 for a nine month option to acquire the mine for an exercise price of US$1.95m. The Company has now paid a further US$50,000 to extend the option period by six months. The option will now expire on 31 March 2008.
Immediately after the signing of the option agreement, Gemfields initiated detailed geological mapping and traversing in the area. The geophysical survey was deferred to the end of the rainy season as soil saturated with water interferes and influences recording and interpretation of resistivity data. The ground geophysical survey was completed in June 2007 leading to the identification of a number of anomalies pointing to possible pegmatites. Ground checking and two exploratory trenches were then completed with a pegmatite being exposed in one of the trenches.
However the results of the exploration so far remain inconclusive hence the decision to extend the period of the option. This will enable Gemfields to establish the continuity and structure of the pegmatite along both strike and dip by pitting/trenching and core drilling to be followed by test mining.
Commenting today, Peter Kitchen, CEO of Gemfields said "The Board is pleased to gain this time extension to obtain the Jagoda Mine as external factors have hampered exploration progress. We are focused on understanding fully the structure, continuity and extent of the pegmatite and look forward to further exploring the anomalies found in the area."
For more information:
Peter Kitchen, CEO peter.kitchen@gemfields.co.uk
Richard James, CFO richard.james@gemfields.co.uk
Gemfields Resources Plc Tel: +44 (0)20 7016 9416
Robin Birchall/Ryan Gaffney +44 (0)20 7050 6500
Canaccord Adams Limited
Jos Simson/Ed Portman Tel: +44 (0)20 7429 6666
Conduit PR
GEMFIELDS RESOURCES PLC
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