Richland achieves first revenue from sapphire operation

Richland Resources was celebrating a successful end to 2015 on Monday, having achieved first revenue from its sapphire and corundum operations in the three months to 31 December 2015.

The AIM-traded gemstones producer and developer said it produced 720,000 carats in the fourth quarter, as part of a production start-up and ramp-up process.

Some 52,266 of sapphire-bearing alluvials were mined and processed, with an average grade of 14 carats per tonne achieved.

Total revenue from the sale of 203,000 carats of lower quality sapphire and corundum brought in total revenue of $226,180 (£157,231), at an average price of $1.11 per carat.

The company's operational cash cost was around $1 per carat.

Richland Resources was also awarded two new exploration licences for highly prospective sapphire areas in Central Queensland, Australia.

"During the last quarter of 2015, we not only surpassed our ramp-up production targets but we also achieved first revenue from the sales of our lower-quality material", said chief executive officer Bernard Olivier.

"We continue to ramp up operations at the Capricorn Sapphire mine as we establish a cost-effective, advanced mining and sorting operation", he added.

At 1255 GMT, Richland Resources' share price was up 13.64% at 3.13p.