Sarcasm Alert - a lengthy PR from management
FURA PROVIDES MOZAMBICAN OPERATIONS UPDATE
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Fura Gems Inc. has released its maiden operations update, including drilling results, for its four ruby licences 4392, 3868, 3869 and 6811 in Mozambique. Fura prepared this operations update to provide investors with additional information on the exploration planning, drilling, sampling, washing, sorting and the geological studies carried out by the company from Oct. 4, 2017, to the present date.
Key highlights
Fura acquired an 80-per-cent interest in ruby licences 4392, 3868, 3869 and 6811, covering a total area of 394.24 square kilometres, in September, 2017. These licences are located within the Montepuez complex in Mozambique.
Fura has set up an operational office in Montepuez with 42 employees consisting of mining engineers, geologists, gemmologists, finance, security and other support team members.
A drilling contractor has been appointed and the facility consisting of the pilot wash-plant has been commissioned to wash the drilling samples. A sort-house facility consisting of expert geologists has been commissioned in Montepuez.
The auger (non-core) and core drilling program was commenced in October, 2017, to delineate the thickness of the gravel bed and ruby-bearing amphibolite rock.
The first phase of the drilling program consists of 5,000 metres (400-metre-by-200-metre grid), of which 2,350 metres of non-core drilling has been completed to date.
A total of 399 non-core bore holes have been drilled and 627 wash samples have been completed. Out of the 399 bore holes, 49 positive bore holes of gravel bed have been intersected.
Out of 627 wash samples (including gravels), a total of 316 samples (50 per cent) have been processed and sorted.
The wash results have generated 926.1 carats of Ruby, Corundum and Garnets.
The drilling program is expected to be completed on or before June 30, 2018, and the bulk mining is expected to commence in the second half of 2018.
Dev Shetty, president and chief executive officer of Fura, commented: "We are delighted to announce our maiden operational update from Mozambique, including the initial findings from our drilling program. Within four months of acquiring our Mozambican ruby licences, we have managed to recruit the key management team, set up infrastructure facilities and deliver 50 per cent of the drilling results from phase 1 of our drilling program. The initial findings from our drilling program have been encouraging with both secondary gravel bed and primary amphibolite reported. The finding of rubies and corundum from the samples further confirms our understanding of the geology."
About Mozambique ruby assets
Mozambican rubies have been historically found in the north-eastern part of Mozambique in the Montepuez district of Cabo Delgado province. Cabo Delgado has an area of 77,867 square kilometres and a population of 1,893,156 and it shares borders to the north with Tanzania, to its west with the province of Niassa, Mozambique and to its south with the province of Nampula, Mozambique.
Fura owns an 80-per-cent interest in each of the licences with the balance held by its local partners.
The four licences cover a total area of 394.24 square kilometres and the mineral granted under such concessions are rubies and other precious and semi-precious stones.
Deposit type
Ruby mineralization at Montepuez occurs in two settings, namely the underlying primary mineralization, which is associated with amphibolites, and the overlying secondary mineralization, hosted by the gravel bed above the basement. The current focus for exploration and production is both the primary and secondary mineralization, which historically has been the source of both high and low-quality gemstones.
Secondary rubies, which are confined to the gravel bed horizon above basement, are typically more transparent, less included and often of a darker red colour than primary rubies in the in situ amphibolite. Primary rubies are liberated by chemical and physical weathering of the host rock. These are then carried by one or more major fluvial cycle and concentrated in the gravel bed due to its high specific gravity.
Alluvial reworking resulted in the fragmentation of the more heavily included and fractured material into particle-sized grains, concentrating the more durable clean material into the gravel bed deposits. As a result, the average gem quality of the secondary rubies is typically much higher than those contained within the primary amphibolite.
Management team
Fura's key management team in Mozambique
Debananda Tripathy is the project manager of Fura Gems Mozambique. Mr. Tripathy joined Fura in June, 2017. He has over 22 years of experience in mineral exploration including 10 years of working experience in Mozambique and South Africa.
Rajendra Rajeeva Karanth is head of finance and administration. He has over 28 years of finance experience and has been working in the African continent for the past 18 years. He has been with Fura since December, 2017.
Harswardhan Singh Rajawat is head of security. He is a former officer of the Indian army with 17 years of experience in strategic management, security and operations. He is an expert in strategic and intelligence services in the mining and gemstones industry. He has been with Fura since December, 2017.
Infrastructure set-up
Fura set up its administrative office in Maputo, Mozambique, in October, 2017, and has a total of four employees. The Montepuez project office was set up in July, 2017, and at present has over 42 employees. The project office houses the exploration, human resources, finance and administration departments.
Exploration and washing at the licenses is being carried out by three senior geologists, assisted by a team of six junior geologists, two sorters and technical assistants.
The exploration camp of Fura is situated in the village of Merenje, which is 35 kilometres northeast of Montepuez city. A team of exploration geologists, samplers, sorters and drilling crew consisting of about 25 people are presently working on site.
Fura has also acquired a Bushman Jig for washing of the samples from South Africa. The jig was commissioned in January, 2018.
Drilling update
In July, 2017, a systematic exploration method was employed over the whole area comprising the licences to get a better understanding of its primary and secondary ruby occurrences/potential. This work included satellite image interpretation, lineament analysis, detailed lithological and structural mapping, and soil geochemical sampling.
Based on the above studies and geological/geophysical and geomorphological interpretation, a series of potential exploration blocks (21) were identified and an Auger drilling program was initiated in the area comprising the licences in a large grid pattern.
Auger drilling is used for getting data relating to the depth and thickness of the gravel bed, the thickness of the over burden and the basement geology. Following the auger drilling, core drilling will be undertaken in the areas where amphibolites rocks with primary mineralization have been encountered. Auger drilling data will also help in identifying the areas for mining by bulk sampling which will determine the actual potential of the area.
Drilling summary auger drilling was carried out in 4392L, 3868L and 3869L from Oct. 4, 2017, to Dec. 9, 2017. A total of 399 noncore auger bore holes were drilled in these three licences. A total of 2,345 metres of drilling was carried out in 16 selected subblocks.
A summary of the drilling completed in 2017 is shown in the table.
Sr. No. License No. No. of bore holes drilled Meterage (m)
1 4392L 95 487.2
2 3869L 52 397.2
3 3868L 252 1460.6
4 6811L None None
Total 399 2345
Sample preparation and other studies are continuing by Fura. Based on the results of this first phase of drilling, a close grid, second phase of drilling will be planned to define the target blocks which will be then tested by bulk sampling pits.
Geochemical surveys
Geochemical sampling of boreholes was completed for all the drill holes completed to date. Each metre interval samples were stored in a chip tray/zip-lock sample bag. A total of 2,376 samples were collected for analysis by XRF/ICP MS. The results of such analysis is pending.
Sample processing
Gravel and possible primary mineralized samples of approximate weight of 35kilograms to 50 kilograms were fed to a scrubber cum classifier with three different size fractions, one millimetre to five mm, five mm to 10 mm and more than 10 mm. The one mm to five mm and five mm to 10 mm samples are being processed by the Plietz Jig and the five mm to 10 mm samples are being hand sorted at site.
The scrubber cum classifier's has a round pan, approximately 500 mm across and 50 mm deep, with a very tight screen bottom which is shaken up and down (jigged) below the water level of its bin. Gravel is fed on to the pan at a controlled rate and this jigging motion gyrates the gravel in the water causing the material with the heavier specific gravity to collect at the bottom of the pan and the lighter material to float over the edge. After feeding the machine with a prescribed amount of gravel, the machine is stopped, the pan lifted out carefully, overturned onto a sorting table and lifted away to expose the collected layer of gravel. Due to the unique jigging action, all the heavy specific gravity material, which includes rubies and garnets are on top of this layer.
Fura has also procured Bushman Jig from South Africa. It is commissioned at site and expedites the washing process. A summary of the washing and sorting results is summarized in the table.
A summary of Fura's washing and sorting results is found in the table (as of Jan. 14, 2018).
Bore holes (BH) Meterage Wash sample BH Gravel Bed (GB) Samples Corundum, Garnet
drilled drilled generated Intersected washed weight (Ct)
399 2345 627 49 312 926.1
Gemmological studies
Fura has a team of specialist gemmologists for immediate study of sample grains obtained from wash samples and field samples. Fura has also established a small-scale field gemmological laboratory in its Montepuez office for immediate reporting of the quality of gemstones identified. All reports are immediately uploaded to Fura's intranet site for further internal expert analysis.
About Fura Gems Inc.
Fura Gems is engaged in the exploration and acquisition of gemstone licences. Fura's headquarters are located in Toronto, Canada, and its administrative headquarters are located in the Almas Tower, Dubai.
Fura owns an 80-per-cent effective interest in four ruby licences (4392, 3868, 3869 and 6811) in Mozambique. Fura is also engaged in the exploration of resource properties in Colombia and owns a 100-per-cent interest in the emerald licence ECH-121.
Qualified person
Ricardo A. Valls, MSc, PGeo, of Valls Geoconsultant, Toronto, Ont., a qualified person as defined by National Instrument 43-101, has reviewed the scientific and technical information disclosed in this news release and has approved its dissemination.
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