Richland Resources Ltd : Resource Upgrade

02/06/2012 | 07:36pm

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Company Richland Resources Ltd TIDM RLD Headline Resource Upgrade Released 07:00 06-Feb-2012 Number 8004W07

RNS Number : 8004W Richland Resources Ltd

06 February 2012

Richland Resources Limited ("Richland" or "the Company") (AIM: RLD) Resource Upgrade Richland Resources Ltd, the gemstones producer and developer today announces a JORC compliant resource upgrade for its tanzanite mining operation in Tanzania. Highlights

· JORC compliant Indicated Resource of 30.6 million carats

· JORC compliant Inferred Resource of 74.4 million carats

· Total Inferred and Indicated Resource of 105 million carats

· Life-of-Mine extended to approximately 30 years utilising the Indicated Resource alone and based on ramped-up production of 2.7million carats

Background

Richland is pleased to announce a resource upgrade for its Block C Merelani tanzanite mine, owned and operated by its wholly-owned subsidiary, TanzaniteOne Mining Ltd. The resource is now JORC compliant and is the first upgrade since the Company's admission to trading on AIM in 2004.
The independent technical report, dated 18 January 2012, was commissioned from Grosvenor Exploration and Mining Services Ltd ("GEMS"), as part of the Competent Persons Report ("CPR") which will be contained in the prospectus for the Company's secondary
listing on the Dar es Salaam Stock Exchange, expected in Q1 2012.

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Work Summary

The JORC compliant mineral resource estimate was based upon a review by GEMS of the combined results of approximately 5,075 metres of diamond drilling conducted over 17 holes plus mine production information for the period between 2001 and mid-2011. In addition, between the previous resource estimate in 2004 and 2011, the mine produced over 11.5 million carats from approximately
266,000 tonnes at an average grade of 43 cpt over the period.
The CPR resulted in an upgrade of the Inferred Resource to that of a JORC compliant Indicated Resource and significantly increased the size of the total resource; from a previous best estimate Inferred Resource of 72 million carats (after accounting for depletion of 11.5 million carats due to mining activity) to a JORC compliant Indicated Resource of 30.6 million caratsand a JORC compliant Inferred Resource of 74.4 million carats,totalling 105 million carats.
The new Indicated Resource alone provides for a life of mine of approximately 30 years at the planned production ramped-up over the next 5 years to 2.7million carats a year.

JORC Compliant Resource Summary

The resource estimate covers several identified ore-shoots (Fold Stacks) within Block C Merelani as shown in the figure attached (every square on the diagram represents approximately 500 x 500m)

http://www.rns-pdf.londonstockexchange.com/rns/8004W_-

2012-2-3.pdf

Resource Category	Tonnage	Average grade (cpt)	Contained carats
Indicated (2)		665,300	46.0	30.6 million
Inferred	Zone A (3)	1,034,000	49.3	50.9 million
Inferred	Zone B (4)	373,400	63.0	23.5 million
Total		2,072,700	50.6	105.0 million

Notes:

(1) Figures stated are gross and Richland's interest is 100%.

(2) The Indicated Resource estimate comprises the remaining resources on the following ore-shoots, Fold Stacks ("FS") 1, 2 and

3 in addition to 500m ahead of the active faces of FS 4, 5 and 6. (3) Zone A comprises the remainder of FS4, 5 and 6.

(4) Zone B comprises FS 6, 7 and 8.

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(5) FS9 has not been included in the resource estimate.

Commenting today, Bernard Olivier, Chief Executive Officer, said: "The resource upgrade at the Merelani tanzanite mine to total Inferred and Indicated Resource of 105 million carats and the life-of-mine extension to 30 years are significant positive developments as the company looks to begin ramping up production over the next five years. In addition, following on from the recent JV announcement, the 33 million carat increase in the total size of the Inferred and Indicated Resource consolidates Richland as one of the premier coloured gemstone mining operations in the world."

Qualified Person's Declaration

Roy G.S. Spencer, the principal of GEMS, has reviewed and approved for release the technical information contained within this press release in his capacity as a qualified person, as required under the June 2009 Edition of the AIM Note for Mining, Oil and Gas Companies. Mr Spencer is a Fellow, in good standing, of the Australasian Institute of Mining and Metallurgy and is a Member, in good standing, of the Geological Society of South Africa and has in excess of 40 years of experience and knowledge in the minerals exploration and mining industry.

END

For more information please contact:

Bernard Olivier

Chief Executive Officer

+61(0) 4089 48182

Willi Boehm

Company Secretary

+61(0) 409 969 955

Nominated Advisor & Broker (AIM) Ambrian Partners Limited Samantha Harrison/Jen Boorer

+44 (0) 20 7634 4700

Joint Broker XCAP Securities PLC John Grant/Jon Belliss/David Newton

+44 (0) 20 7101 7070

Threadneedle Communications

Laurence Read/Beth Harris

+44 (0)20 7653 9855

+44 (0)7979 955 923

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Glossary of technical terms:

"cpt" Carats per tonne

"Indicated Mineral Resource"

"Inferred Mineral Resource"

That part of a Mineral Resource for which tonnage, densities, shape, physical characteristics, grade and mineral content can be estimated with a reasonable level of

con idence. It is based on exploration, sampling

and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes. The locations are too widely or inappropriately spaced to con irm geological and/or grade continuity but are spaced closely enough for continuity to be assumed.

That part of a Mineral Resource for which tonnage, grade and mineral content can be estimated with a low level of con idence. It is inferred from geological evidence and assumed but not veri ied geological and/or grade continuity. It is based on information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes which may be limited or of uncertain quality and reliability.

"JORC" The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, as published by the Joint Ore Reserves Committee of The Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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