Monday, 13 August 2001
Further to the announcement released on SENS on 20 April 2001, shareholders
are advised that the Tanzanian High Court continues to review the
documentation submitted by AFGEM's lawyers, countering claims against the
company by three mining associations in Tanzania. The Tanzanian government
remains completely supportive of AFGEM and the group anticipates a positive
outcome.
Accordingly, major capital expenditure at the Merelani Tanzanite Mine has
been restricted and development and subsequent production has been delayed.
As a result, while AFGEM's sales figures for the period ending 31 March 2002
are expected to be higher than the previous corresponding period, sale of
the group's production for the interim period ending 30 September 2001 is
anticipated to be lower than expected.
According to Professor Reyno Scheepers, consultant geologist, "Mining
development in the decline shaft is continuously adding to the geological
understanding of the tanzanite deposit of AFGEM's mining licence and the
sinking of an exploration shaft on the Upper Horizon is yielding exciting
new geological information."
General Manager of the group's Tanzanian operation, Joe Kimble, says,
"Better understanding of the ore resource has allowed for the opening of
number of new faces, which promise positive results. New faces are currently
being bulk-sampled."
On Saturday, 11 August 2001, AFGEM introduced its brand for superior quality
tanzanite, `Tanzanite Foundation', at the Jewellex Trade Fair at the Sandton
Convention Centre in Johannesburg. The concept of the brand has been well-
received by local and international consumers alike.
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
