Last checked at 9 Dec 2019 07:00
B"H
9 December 2019
Shefa Gems Ltd.
("Shefa Gems" or the "Company")
Maiden resource for Kishon Mid-Reach project
Independent report upgrades Zones 1 and 2 of the Kishon Mid-Reach and estimates a contained revenue of approximately US$41/t chiefly due to the high value of the unique Carmel Sapphire™
Shefa Gems (LSE: SEFA), a company focused on advanced exploration and development of multi-gemstone projects in Northern Israel, is pleased to announce that Kishon Mid-Reach Zone 1 and Zone 2 has been upgraded to an Inferred Mineral Resource following the completion of the Competent Person's Report ("CPR") update.
Highlights of CPR update:
·; Zones 1 and 2 of the Kishon Mid Reach project upgraded to an Inferred Mineral Resource classification
·; Gem Box Suite has an approximate contained revenue of US$41/t
·; Shefa Gems has upscaled its operational capacity to facilitate the treatment of large samples and is now at an advanced stage of planning and development in its trial mining phase
The updated CPR, which used all available data up to August 2019, has upgraded Zones 1 and 2 of the Kishon Mid-Reach to an Inferred Mineral Resource from its previous classification of an Exploration Project. The upgrade follows considerable detailed exploration work and is based on the occurrence of gemstones of economic interest in such form, quality and quantity that there are reasonable and realistic prospects of gemstone extraction for the general consumption in the jewellery market.
Significantly, the report concludes that the Company's overall Gem Box suite is estimated to have a contained revenue of US$41/t, led by the Carmel Sapphire™ at US$35/t due to its high intrinsic value and the presence of large stones. A contained revenue of US$41/t is considerably higher than the projects estimated operating cost budget over the Life of Mine of US$26/t, with the potential to be as low as US$10-15/t, as published in the Technical Economic Evaluation announced in February 2019. This contained revenue also excludes any margin the Company will gain from its multi-channel vertically integrated marketing strategy and premium attracted to gems originating from the Holy Land.
In addition, the report notes that due to the progress of the Company whereby its exploration campaign has advanced to the evaluation phase, it has up-scaled the operational capacity, equipped with state-of-the-art treatment facility and laboratory, to facilitate the treatment of large samples and started with the inception of a trial mining phase.
Michael Rosenberg, OBE, Chairman of Shefa Gems, said: "We are delighted the CPR has raised the classification of the Kishon Mid-Reach project to an Inferred Mineral Resource, a landmark achievement for Shefa Gems. The report also clearly recognised the Company's excellent progress as we advance with our plans towards the start of trial mining in 2020. The CPR is yet another strong endorsement of the quality and potential of our project following the independent Technical Economic Evaluation and gemstone valuations announced earlier this year. As Shefa Gems continues to deliver on its key milestones, the evidence mounts to support our confidence in the significant potential value of the Kishon Mid-Reach project."
The CPR was prepared by Creo Design (Pty) Ltd ("Cre") in accordance with the "South African Code for Reporting of Exploration Results, Mineral Resources and Mineral Reserves" (SAMREC Code), as amended in 2016. The full CPR is available on the Shefa Gems website: www.shefagems.com
- Ends -
Enquiries
Shefa Gems Ltd |
|
Michael Rosenberg, OBE - Chairman www.shefagems.com | +44 20 7938 4026 |
|
|
VSA Capital Limited - Financial Adviser |
|
Andrew Raca | +44 20 3005 5000 |
|
|
SI Capital Limited - Broker and Strategic Adviser |
|
Nick Emerson and Jon Levinson | +44 20 3871 4038 / +44 1483 413500 |
|
|
Luther Pendragon |
|
Harry Chathli, Alexis Gore, Rachel So | +44 20 7618 9100 |
Notes to Editors
About Shefa Gems Ltd
Shefa Gems Ltd (LSE: SEFA) is a multi-commodity explorer of precious stones operating in Northern Israel. Exploration activity is managed by professionally skilled and technically competent personnel and is accompanied by an international team of geological experts with decades of proven experience in their fields.
All exploration activities are conducted under international standards and the internationally recognised SAMREC 2016 Code. Furthermore, its four (4) permits, granted to it by the Commissioner of Mines at the Ministry of Energy, Natural Resources Administration, Israel, extend over an area of approximately 600,000 Dunam (60,000 hectares) that includes the Kishon River, the volcanic bodies on Mount Carmel, the Zevulun and Yizre'el valleys and their margins - Menashe Hills, Tivon-Alonim Hills, and Nazareth range. The Company upholds environmental values and protects the nature in the areas where it operates, cooperating fully with all authorities.
Alongside its exploration activities, the Company is building on the launch of the "Heaven on Earth" jewellery collection and developing the Company's "Mine to Market" strategy to promote unique jewellery collections utilising Shefa Gems' suite of precious gemstones.
The exclusive "Heaven on Earth" collection is now available to view online on the website of the designer Yossi Harari at: https://www.yossiharari.com/collections/heaven-on-earth-1
For further information please visit the website at www.shefagems.com