Gemfields Grou. Regulatory News (GEM)

14 Dec 2005 14:33

14 December 2005 GEMFIELDS RESOURCES PLC MBUVA-CHIBOLELE MINING CONTRACT AWARDED Gemfields Resources Plc ("Gemfields" or "the Company", Ticker "GEM") is pleasedto announce that significant progress in the drive to emerald production at theMbuva-Chibolele Mine has been made with the awarding of the mining contract on13 December 2005.The Mbuva-Chibolele Mine is situated in the Ndola Rural Emerald Restricted Area("NRERA") in the Kafubu area of Zambia and is the major emerald asset ofGemfields.The mining contract was put out to open tender by the Company and was awardedto Chantete Emerald Ltd (Zambia). This company has over seven years experienceof mining in the Kafubu area and will be backed by Bell Equipment CompanyZambia Ltd who will provide new excavators, bulldozers, articulated dump trucksand graders for the project.Overburden stripping will commence on 3 January 2006 and it is planned toremove approximately 4.2 million tonnes during the first year. Trial productionis scheduled to commence early in the second quarter of 2006.The cost per tonne of overburden removal in this contract is significantlylower than originally budgeted by Gemfields and therefore has a favourableeffect on the project economics.Commenting today, Jeremy Clarke, CEO, said "The awarding of this contract only15 days after the listing of the Company on AIM indicates the speed andcommitment that Gemfields is bringing to meeting its stated objectives".For more information:Richard James, Gemfields Resources Plc +44 (0)20 7016 9416/+44 (0) 7958 714 056richard.james@gemhouseonline.comLeesa Peters/Laurence Read, Conduit PR +44(0)20 7618 8760/+44 (0) 7979 955 923laurence@conduitpr.comENDGEMFIELDS RESOURCES PLC