Big Picture – A Deep Dive Examination of Richland Resources Ltd
Richland Resources Ltd Snapshot
Since the beginning of 2015, Richland has entered into a new phase of operations and is currently focusing on mining at its Capricorn Sapphire mine site in Queensland, Australia. The company’s strategy is to focus on the development of the Capricorn Sapphire mine as a new hub for ethically mined sapphire. First sapphire sales are scheduled for Q2 and will be conducted through a sight holder process.
Richlandgemstones.com is our new online sales portal that will be launched in the first half of 2015, and is an evolution of our existing highly successful tanzanite retail portal.
Richland’s team will continue to utilise their unsurpassed knowledge of tanzanite to select only the best gems directly from the Merelani deposit in Tanzania, as well as offering natural blue and fancy colored sapphires from the company’s own Capricorn Sapphire mine in Queensland, Australia.
An established track record in coloured gemstones
Richland developed and operated the worlds largest and most scientifically advanced tanzanite mine, TanzaniteOne Mining Ltd, from August 2004 until March 2015. The Company also developed a beneficiation division for the sale and export of cut gemstones while establishing a multi-level sales system for retailing ethically sourced gemstones to corporate and individual buyers.
In addition to having established profitable mining and beneficiation operations, Richland has also successfully developed international brands for its product, such as the Tanzanite Foundation and The Tanzanite Experience retail outlets.
The Company is now applying its experience to creating an ethical route for providing the luxury goods market with sapphires.
Richland believes strongly in the future and potential of the coloured gemstone sector and will continue to capitalise on the opportunities for growth in the worlds coloured gemstone market.
Richland is working to establish the Capricorn Sapphire Mine as a new hub for responsibly mined blue, yellow, green and multi coloured sapphire.
The Capricorn Sapphire mine is located near the town of Sapphire in Central Queensland, Australia, and mining commenced in Apr 14, 2015. The mine lies within the well-known Queensland Sapphire Gemfields, a region that has historically been one of the biggest sapphire fields in the world, but has seen little development in terms of of modern gemstone mining practices.
The mining licence covers around 1210 acres/490 hectares and an estimated *100 million carats of sapphire lie below the surface, making it one of the largest sapphires mines in the world. *JORC (2004)
The Colours of Capricron Sapphire
Though most people associate sapphire with the color blue, sapphires actually occurs in a wide spectrum of colors. The Capricorn deposit contains large quantities of blue-coloured sapphires and also produces beautiful and unusual yellow and green sapphires. These colors are entirely natural, and the result of the crystals’ exposure to different natural chemicals during formation.
The Capricorn mine also produces rare “parti colored” sapphires which display two or more. These multi colored gemstones are the natural result of exposure to different chemicals during formation and are found is far fewer numbers than blue or single colored sapphires. No two parti colored sapphires are the same , offering their owner the ability to posses a truly individual gemstone.
Guaranteed Authenticity, Origin & Supply
Capricorn Sapphire is involved in every step from mine to market, and can guarantee each sapphire’s origin and authenticity as every gemstone is sourced from our own Capricorn Mining Operation.
Mining & Processing
The Capricorn Sapphire mine is open-pit, and no tunneling is required. We mine in phases, excavating small areas to expose the sapphires. We then refill each area, replacing the topsoil and vegetation as part of our environmental rehabilitation.
A purpose-built alluvial sapphire processing plant capable of treating 200 LCM per hour is located on site . The plant processes mined material from a JORC (2004) Measured Sapphire Resource of approximately 21.6 million grams (109million carats) of sapphires. The current resource is calculated based on previous exploration and mining conducted on the licences.
The project consists of two mining leases (ML 70419 and ML70447) comprising about 490 hectares of potential sapphire-rich alluvial placers within this known gem field.
The Global Sapphire Market
Sapphires have been prized from antiquity, and are popular all over the globe. However, sapphire mining has remained generally artisanal (and small scale), with a fractured supply chain, sporadic supply for manufacturers, and the inability for end consumers to track the origin of their stone.
Richland believes that the Chinese market demand for sapphire is increasing beyond their own domestic supply and, furthermore, that the US jewellery and gemstone market continues to strengthen and recover since 2013. Single-origin supply of commercial colours and quantities of sapphire are difficult to find, due to blending in the wholesale and polishing markets. Richland has the expertise to apply first-rate mining practices to a proven sapphire resource and create a platform to supply consistent quantities of source-assured, ethical gemstones to major international buyers for mine-to-market assured supply chains.
Edward Nealon, Non-Executive Chairman
Mr Nealon is a geologist with 40 years’ experience in the mining and exploration industry. After graduating in 1974, he commenced his career in South Africa with Anglo American Corporation, before moving to Australia in 1980 where he spent two years in exploration with Rio Tinto. He founded his own consulting company in 1983 and has practiced in most of the world’s major mining centres. Mr Nealon was responsible for Aquarius’ introduction into the platinum industry and served on its board for a number of years. He holds a Masters degree in Geology and is a member of the Australian Institute of Mining and Metallurgy.
Ami Mpungwe, Non-Executive Deputy Chairman
Mr Mpungwe has been Chairman of the Group’s Tanzanian subsidiary since March 2000 and has been integral to its establishment and development. He assumed Chairmanship of the Group on 24 October 2008 after serving as Deputy Chairman at its inception in August 2004. Mr Mpungwe has an Honours degree in International Relations and Political Science, a diploma in International Law and has spent 25 years in the diplomatic service, including six years as Tanzanian Ambassador to South Africa. He holds directorships in ILLOVO Sugar Ltd, National Bank of Commerce Ltd, Tanzania Breweries Ltd, Kilombero Sugar Co Ltd, MultiChoice Tanzania Ltd, Niko Insurance Co (Tanzania) Ltd and has also been the Chairman of the Tanzania Chamber of Minerals and Energy since 2007.
Tony Brooke, Chief Executive Officer
Mr Brooke has approximately 36 years’ experience in the gemstone industry based in Bangkok, Thailand, the commercial centre of the ruby and sapphire industries working as a gemstone wholesaler and consultant. A senior sapphire industry figure, he has been a member of the Thai Gems and Jewellery Traders Association for eleven years and from 2011 to 2017, acted as its Chairman for overseas trade and development for Europe, Central and South America and Africa.
Nicholas Sibley, Non-Executive Director
Mr Sibley is a Chartered Accountant. He was formerly Chairman of Wheelock Capital from 1994 to 1997 and Executive Chairman of Barclays de Zoete Wedd (Asia Pacific) Limited from 1989 to 1993. He is a former managing director of Jardine Fleming Holdings and director of Robert Fleming Holdings and Barclays de Zoete Wedd Holdings. He recently stepped down as chairman of Aquarius Platinum Limited and is a director of Asia Pacific Fund Inc.
Mike Allardice, Group Company Secretary
Mike is a UK and Hong Kong qualified accountant and started his career in the mid 80’s with a London based firm of accountants before moving to Hong Kong in 1993 where he, joined the corporate services industry , and in 2000 established his own corporate advisory business. Mike has a wide range of industry experience which includes the mining, financial services and commodities industries and has been actively involved in the commercial aspects of the identifying, structuring, managing and exiting of private and public transaction in relation to projects and investments in Asia, Africa , Europe and South America.
Louis Swart (CFO)
Louis Swart joined Richland Resources Ltd as Group Chief Financial Officer in April 2013. He holds a Bachelor of Commerce degree from the University of Pretoria, a Honours degree in Commerce (Accounting) from the University of South Africa and is a chartered accountant and a member of the South African Institute of Chartered Accountants and Institute of Chartered Accountants Australia. Louis qualified as a chartered accountant in South Africa, completing his articles in 2001 at Kotze and Abbott. He has over 15 years of accounting, finance and senior management experience including over 10 years of working in diverse financial roles in the mining industry. Louis previously worked for the Richland group as Financial Manager in 2003, working at its operations in Tanzania until 2008. Since then he has served as Financial Manager at Simmer & Jack Mines Limited and from 2011, until joining Richland Resources, as Senior Staff Accountant at Tronox Western Australia Pty Ltd.
Suminda Galketiya (Production Management & Rough Sales )
Suminda is responsible for the sort house processing and sales of Richlands rough sapphires. Suminda has over 15 years experience in the international gemstone and fine jewelry industry, and has formerly held positions as the Head of Sorthouse and Sales for TanzaniteOne Mining Limited in Tanzania, Operations Manager for Sri Lanka’s largest diamond company and was the VP of marketing and operations for a international jewelry manufacturer, also in Sri Lanka. Suminda holds a Graduate Management Diploma from AOTS Japan and qualifications from the GIA.
Laurence Read (Corporate Development & Communications)
Laurence has over 15 years experience working in strategic development and communications. During his career he founded two leading financial communications agencies based in the UK and has worked with a wide range of precious gemstone and resource companies across the world.
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