Operational and Marketing Update (3062A)
31 January 2011 - 6:00PM
UK Regulatory
TIDMTNZ
RNS Number : 3062A
Tanzanite One Limited
31 January 2011
TanzaniteOne Limited
("TanzaniteOne" or "the Company") (AIM: TNZ)
Operational and Marketing Update
TanzaniteOne Limited (AIM: TNZ), the gemstones producer and
developer today announces an operational, sales and marketing
update. All figures are unaudited.
Highlights
-- US$ 15.8 million in sales for 2010 (US$ 12.5 million,
2009)
-- Total production of 2.2 million carats for 2010 (1.9 million
carats, 2009)
o Average grade of 59carats per tonne for 2010 (51 carats per
tonne, 2009)
-- Commissioning of new cutting and polishing facility located
at the TanzaniteOne mine
-- Q4 2010 :
o Total production of 536,521 carats for Q4 2010 at 65 carat per
tonne average grade
o US$ 3.4 million in sales for Q4 2010
Production
In the fourth quarter of 2010, the Company achieved production
totaling 536,521 carats from the processing of 8,280 tonnes of
material at an average grade of 65 carats per tonne for the
quarter. Furthermore, Company achieved its annual production target
of 2.2 million carats with an average grade of 59 carats per tonne
for 2010 for the year. TanzaniteOne, which uses state-of-the-art
optical sorters and technically advanced processing and sorting
methods, has further enhanced its sorting techniques resulting in
the unlocking of further value in the B and BL quality categories.
This initiative forms part of the Group's stated refocus on its
main production source of these lighter but equally brilliant
stones. Additional evaluation continues in this area as
TanzaniteOne strives to unlock value in this significant portion of
its production.
Sales
The Company achieved total sales revenue for the fourth quarter
of 2010 of approximately US$3.4 million and for the full year of
approximately US$ 15.8 million .
Legislation for cutting of all gemstones over 5 carats
As reported to the market on 9 June 2010, a ban on the export of
rough tanzanite larger than 5 carats (1 gram) came into effect on
31 December 2010. The Company and other industry stakeholders are
currently in ongoing negotiations with the Government regarding the
implementation of the ban and possible effects on the tanzanite
industry. However, in preparation for the ban the Company has
completed phase 1 of the development of its own cutting and
polishing facility located at its Block C tanzanite operation. The
cutting facility was commissioned in December 2010 when a total of
216 carats were polished.
The Company remains positive that it will be able to maintain
its revenue stream through the continued expansion of sales from
its own cutting and polishing facility, agreements with other
cutting facilities in Tanzania and the sale of material not
affected by the ban.
Commenting today Bernard Olivier, Chief Executive Officer, said;
"The Company accomplished its production target for 2010 of 2.2
million carats and achieved an average grade of 59 carats per
tonne, culminating in total sales of US$ 15.8 million for the year.
In December 2010, as part of our phase 1 development plan, we
commissioned our new cutting and polishing facility located at the
TanzaniteOne mine where 216 carats were polished for the month. We
look to expand our sales from this in-house cutting facility.
TanzaniteOne is also working towards establishing an economic model
for the Tsavorite mine where we will be commencing a bulk sampling
programme in the coming months with a view to updating the resource
in Q2 2011."
Notes to the Editor:
The following modified tanzanite grading and classification
system is currently being used by the Company:
Grade Description
-------- ------------------------------
A Exceptional Colour, Eye Clean
-------- ------------------------------
B Rare Deep Colour, Eye Clean
-------- ------------------------------
B (SI) B Colour - Slightly Included
-------- ------------------------------
B (I) B Colour - Included
-------- ------------------------------
BL Lighter Colour B grade, Eye
Clean
-------- ------------------------------
BL (SI) B Light - Slightly Included
-------- ------------------------------
BL (I) B Light - Included
-------- ------------------------------
D Opaque Material
-------- ------------------------------
END
For more information, please or contact:
Willi Boehm, Company Secretary
+61 8 9367 5211
Bernard Olivier, Executive Director
+61 4089 48182
Nominated Adviser and Broker
Ambrian Partners Limited
Samantha Harrison/ Richard Chase
+44 (0) 20 7634 4700
Joint Broker
XCAP Securities PLC
John Grant/Jon Belliss/David Newton
+44 (0) 20 7101 7070
Public Relations
Threadneedle Communications
Laurence Read/ Beth Harris
+44 (0)7979 955 923
This information is provided by RNS
The company news service from the London Stock Exchange
END
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