Gem Resources PLC (LSE:GEMR) chief executive Bernard Olivier explains to Proactive the progress being made at the Gravelotte Emerald mine with several milestones passed recently.
Bernard Olivier: We've just released an operational update on Gravelotte where we have made significant progress. We recently announced that we are finalizing the upgrades and improvements on-site in our phased approach to restarting the mining operations.
With the successful completion of phase one, we have implemented upgrades to the processing plant and site, which now leads us into phase two of our operations. This involves active mining operations that are currently commencing in the Cobra open pit.
Proactive: And you've seen significant improvements with the upgrades?
Bernard Olivier: Absolutely. We are very pleased with the site and processing upgrades, which have achieved a 45% increase in the plant's processing capacity. Very importantly, since completing these upgrades, we've had no downtime related to breakdowns.
Proactive: And also big cost savings?
Bernard Olivier: Significantly so. As part of these upgrades, we can process more tonnes through the plant at a lower cost.
Proactive: So as you enter phase two and take a phased approach to restarting operations, why this strategy? Also, what's happening with the mining activity at the Cobra open pit?
Bernard Olivier: The phased approach is because we are doing everything in a very cash- and cost-conscious way. This approach allows us to restart the mine responsibly. It's important for investors to know that we are debt-free.
We've taken a responsible, sometimes slower, but ultimately cost-saving approach. For example, we achieved about a 75% cost saving by building our own upgrades rather than buying machinery off the shelf.
Now, as we move into phase two, we are focusing on mining activities in the Cobra pit. We are targeting ore zones that have been delineated through work by ACA Howe International and SRK.
Previously, we mainly processed tailings and stockpiled material, but now we are actively extracting ore from these zones.
Proactive: Are you encouraged by the progress you've made?
Bernard Olivier: Yes, it's early days. Phase one has just been completed, and we've only recently started mining activities. So far, we are very happy and encouraged by what we are seeing in our mining operations.