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Richland Resources to temporarily halt mining operations at Capricorn Sapphire mine, assessing potential additional projects

Published: 04:29 11 Dec 2017 EST

Sapphires
Richland pointed out that total rainfall during the fourth quarter to date at the Capricorn mine site of 271mm is significantly higher than the equivalent period last year

Richland Resources Limited (LON:RLD) says it has decided to temporarily halt mining operations at its Capricorn Sapphire mine located in Queensland, Australia due to “extreme weather conditions and a weak market environment” and is assessing potential additional project opportunities, including other commodities such as gold and lithium.

The AIM-listed gemstones producer and developer said, as previously announced, the company has stockpiled gemstones from its third quarter's production to pursue larger-scale, more strategic, sales events at more attractive prices.

READ: Richland Resources notes signs of recovery in sapphire market

The group added that the next such event is planned for later this month, and, whilst production is suspended, the company will commence an exploration programme seeking to further develop and identify additional resources on its Capricorn mine's licence area.

Richland pointed out that total rainfall during the fourth quarter to date at the Capricorn mine site of 271mm is significantly higher than the equivalent period last year, of 35.6mm, and this has severely hampered production efficiency.

It added that the decision to temporarily halt mining operations is in order to conserve cash resources and in anticipation of a recovery in the current weak sapphire pricing levels and market demand.

Further exploration to target resource expansion

Bernard Olivier, Richland’s CEO commented: "Due to the nature and flexibility of our mining model at Capricorn Sapphire and its limited non-production related costs, operations can be cost-effectively contracted or expanded as required.”

He added: "We have also embarked on further exploration to target resource expansion and continue to identify and assess potential additional project opportunities, including in other commodities such as gold and lithium in Queensland, with a view to potentially leveraging the Company's well established central infrastructure and exploration expertise.”

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