In a change in strategic direction for Cluff Resources Pacific (ASX: CFR), the company will focus on exploration and production of gold and gemstones in Madagascar, in association with Varun Madagascar.
The company aim is to provide a low-cost production mine in the short and medium term, with a joint venture which Cluff has a 35% interest in production from a 20 year exploitation licence, which contains a deposit of sapphires and rubies in host rock.
Although the corundum (which grades from rich blue and purple sapphire to rich red ruby within the deposit) is located in host rock, Cluff said that the rock is friable and relatively soft to at least 15 metres depth, and the sapphire and ruby is relatively easy to extract without any residual damage.
Test sampling found the largest ruby being over 29 carats, with a number of other gem quality stones also identified.
Cluff has developed a strategy to delineate the area of the deposit on the surface together with some pitting to 10 metres depth to extract gem quality stone for further assessment and grading.