Shefa Gems Ltd (LON:SEFA)

Strategy

The Company’s strategy is to focus on exploration targets which it deems to have the highest upside and can be bought into production at a relatively low cost. To this end, it has identified the Mid-Reach alluvial target as a high priority where significant drilling and sampling has taken place. Shefa is at an advanced stage in completing an inferred mineral resource on the Mid-Reach, whilst continuing to evaluate the primary source in Mount Carmel.

Kishon River

Exploration Target
Kishon Mid  Reach

The Kishon Mid Reach placer is the Company’s most advanced exploration project and ongoing exploration activities are being undertaken with the aim of defining a SAMREC compliant Mineral Resource. The target is 4.5 km long and about 150 m wide with gravel layers of variable thicknesses between 0.5 m and 4.5 m. All gemstones are entirely found within the gravel fractions.

The Company has delineated the Kishon Mid Reach placer in three zones, namely; Zone 1, Zone 2 and Zone 3, all of which are at different stages of development.

Zones 1 and 2, which cover c.3.5km of the total length of the placer, are believed to contain some 1.1Mt of gemstone bearing gravel. These two zones have been the focus of the Company’s drilling and a bulk sampling programme. Out of roughly 186 boreholes drilled by the Company, a total of 137 boreholes were drilled specifically in Zone 1 + 15 bulk sampling and 23 boreholes in Zone 2 + 26 bulk and mini bulk sampling, whilst approximately over 6kt in bulk sampling has been completed in these two zones.

The mapping, drilling and pitting results obtained to date, which have been further modelled in 3-D, point to potential extensions of the Kishon Mid Reach placer in both upstream and downstream directions.

With Zone 1 now well delineated, future bulk sampling and drilling campaigns will focus primarily on Zone 2 and Zone 3 to determine the full resource potential of the Kishon Mid Reach placer.

For more information click here.

Mount Carmel
Primary Deposits

Secondary alluvial deposits, such as the Kishon Mid Reach placer, derive their gemstones from the weathering and erosion of primary volcanic sources of which the Company has identified four inside the Company’s exploration permit: Rakefet Magmatic Complex (“RMC”), Muhraka, Har Alon and Beit Oren.

To date, the majority of exploration work has been carried out on the RMC, which lies on the southern portion of Mount Carmel. The Company has completed geological mapping as well as rock and soil sampling, which has led to the identification of gem and industrial minerals in the Company’s target mineral assemblage as well as kimberlitic indicator minerals.

Of the identified primary sources, the RMC contains the full assemblage of the target mineral assemblage, although at this stage there is insufficient data to suggest that this primary source could be economically exploited and therefore no drilling has been done so far.

Further exploration and greater understanding of the primary sources which feed the secondary deposits could lead to further discoveries within the Company’s exploration and prospecting permits. The Company intends to continue exploration of the volcanic bodies on Mount Carmel in parallel with its exploration and evaluation activities in the Kishon Mid Reach. For more information click here.

Natural Mossanite- for more information click here.

Carmel Sapphire - for more information click here.

Abraham Taub, Non-Executive Chairman, served in the Israeli Defence Forces for four years, compulsory in Israel, later becoming a commander in an elite unit. He has over 45 years’ experience in all stages of the gemstone industry, including treatment of raw diamonds, polishing and cutting at his family owned business, one of the supplier of diamonds to the illustrious Israeli diamond industry. He later diversified his professionalism from diamonds to precious stones and jewellery design providing him with invaluable experience and contacts within the jewellery industry.

A scholar of Gemmology and Mineralogy, Mr Taub embarked on a number of ventures
within the gemstone industry becoming the first person to establish an innovative and highly
effective central marketing system in Israel which facilitated the sale of gemstones to the
end user. In 1999, he became one of the founders of Shefa Yamim (A.T.M.) Ltd and has been instrumental in the evolvement and development to date.

James AH Campbell, Independent Non-Executive Director, graduated as a geologist from the Royal School of Mines (Imperial College, London University) in 1985 and completed an MBA at Durham University in 1998. He has over 30 years’ experience in the diamond industry having spent over 20 years’ with De Beers’ Global Mining and Exploration Group before becoming Managing Director of African Diamonds plc in 2006.

Mr Campbell has extensive board and sector experience and has served on several UK and Canadian boards including African Diamonds plc, West African Diamonds, Stellar Diamonds plc and Rockwell Diamonds Inc. He is currently Managing Director of Botswana Diamonds plc.
Mr Campbell is a Fellow of the Institute of Mining, Metallurgy & Materials, a Fellow of the South African Institute of Mining, a Fellow of the South African Institute of Mining, Metallurgy & Materials, a Fellow of the South African Institute of Mining & Metallurgy, Chartered Engineer (UK), Chartered Scientist (UK), a Professional Natural Scientist (RSA) and a Fellow of the Institute of Directors South Africa.

Michael Rosenberg, Independent Non-Executive Director, spent his early business years with the merchant bank, Samuel Montagu and Co. Ltd and joined the board in 1971 as Director of corporate finance. In 1974, he left the bank to co-found a healthcare business which became a global business within the next 10 years.

From 1987 to 1999 he was a shareholder, director and later chairman of Raphael Zorn Helmsley Holdings ltd (now Numis Corporation). During that period, he was instrumental in bringing Israeli companies to the AIM market.

He served on a number of Israeli boards both as an external director and as chairman including: Amiad Water Systems Ltd, Dori Media Ltd, Pilat Global Media Plc and more recently Starcom plc where he is Non-Executive Chairman. He is a Non-Executive Chairman of Catalyst Media Group plc. He is also a Non- Executive Director of Ion Pacific (UK) Ltd, an FCA regulated company.
Mr Rosenberg chaired a DTI committee on trade with Hong Kong for several years and also served on the board of the China British Business Council. He was awarded the OBE for services to exports in 1998. He is a published author of children's books and mentor to the Prince's Trust, helping young people to start new businesses.

Nathalie Schwartz, Independent Non-Executive Director, a graduate from the University of Manchester and a qualified lawyer, started her career at leading global law firm Clifford Chance focusing on cross-border mergers and acquisitions, corporate restructurings, IPOs and private equity. Ms Schwartz has operated as an Executive Director on the Boards of two of the UK’s leading public companies in the media and digital technology sector, namely as Group Commercial Director at Channel 4 Television Corporation and as Group Strategy and Development Director at Capital Radio PLC.

She also served as a Non-Executive Director on the Board of Matomy Media PLC (digital advertising services), which listed on the London Stock Exchange in 2014 and as a Non-Executive Director on the Board of publicly listed companies Amiad Water Systems PLC (water filtration) and Photon Kathaas (Indian film production and distribution). She is currently a Non-Executive Director on the Board of UK publicly listed company Wilmington Group PLC (digital data, publishing and training).

Ms Schwartz specialises in growing businesses, strategy, operational management, developing new commercial and technological opportunities, as well as mergers and acquisitions.

Israel David Nachshon, Independent Non-Executive Director, a graduate in Rabbinical

Ordination, Mr Nachson has extensive ties within the Jewish community worldwide, as well
as established government relations in Israel. He has been on the board of Shefa Yamim (A.T.M.) Ltd and Shefa Yamim Ltd since 1999, when the company was founded. Mr Nachshon is a Board member of the Jewish community institution in Kiev, Ukraine, Chairman of the Chabad Jewish Mobil Mitzva Centre, Chabad Youth Movement Tzivos Hashem and Chabad Educational Institutions.

Gershon Fraenkel, Independent Non-Executive Director, is a British Citizen and founder of WST Charity Ltd, in North West London which focuses on alleviating poverty within the Jewish Community in the area. He has successfully launched many international businesses in the last 25 years, including SEACO Group of Companies and Linkedell Ltd. As a result, he acts as an intermediary and adviser of international transactions to companies in Israel and the UK. Mr Fraenkel is fluent in English, Hebrew and Yiddish.

Hanoch Ehrlich, Independent Non-Executive Director, is a qualified lawyer and has held an Israel Bar Association license since May 1994. Mr Ehrlich is specialised in contract law, company law and all aspects of commercial law.

He has worked on several international M&A transactions, including advising companies in Central and Eastern Europe. He is experienced in litigation, having represented various entities such as the Israel Military Industries Ltd., the Shikun U’binui Group (the largest construction conglomerate in Israel), the Ofer Brothers Group, the Yitzhak Tshuva Group, Bank HaPoalim, the Israel Discount Bank, the Industrial Development Bank, the Israel Shipping Bank, Amdocs (Israel) and the Israel Citrus Marketing Board.

Shefa Yamim Ltd.
Southern Industrial Zone (Barbour Center), Akko, Israel

Tel: 00972-4-8203770
Fax: 00972-4-8202478
E-mail: [email protected]

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Harry Chathli, Ana Ribeiro or Alexis Gore at Luther Pendragon on
+44 (0) 207 618 9100