LEX Lexington Gold Ltd

TIDMRLD

RNS Number : 2271S

Richland Resources Ltd

06 July 2015

Richland Resources Ltd

("Richland" or "the Company") (AIM: RLD)

Marketing and Online Sales Update

-- First product display and education sessions on Capricorn Sapphire gemstones held during Hong Kong Jewellery Show (June 2015)

o 9 Potential sight holders attended Capricorn Sapphire sessions including representatives from major retail distributors and manufacturers

o Two formal site visits to Capricorn Sapphire mine to now be undertaken with a selection of parties during Q3 2015 to view operations including control of source integrity system

-- richlandgemstones.com online retail platform for fully certificated coloured gemstones and jewellery has been launched

o Selected sapphires mined to date being cut in preparation for sale on website

   --     First sight sale scheduled for Q3 2015 

Richland Resources Ltd, the gemstone producer and developer of the Capricorn Sapphire project, today announces a marketing and operations update to the market.

As previously announced and in consultation with interested sight holder groups, the Company has held a display and education session on the sapphires being produced in Queensland Australia at the June 2015 Hong Kong Jewellery Fair (the "Show"). This followed a slower ramp-up at the Capricorn Sapphire mine due to a now rectified electrical issue and a decision to delay the first formal sight sale of sapphires. During the Show Richland hosted sessions with a series of wholesale gemstone distributors, jewellery manufacturers and other interested parties on the Capricorn Sapphire product offering namely:

   --     Fully transparent and certificated sapphires from Australia 
   --     Stable production base with operations capable of supporting consistent supply 
   --     High quality and clarity blue and coloured sapphires 

The education sessions covered the production and marketing requirements of prospective sight holders. Some 10 prospective sight holders attended the sessions where natural rough sapphires from the mine were displayed. (See attached photos: http://www.rns-pdf.londonstockexchange.com/rns/2271S_-2015-7-6.pdf ) Samples were made available to prospective sight holders for test polishing and further market assessment and development.

Following the Show, two formal site visits to the mine have been scheduled by retail distributors and manufactures, during Q3 2015 whilst production ramp-up continues

The Company is also delighted to announce the launch of its online, Business-to-Customer (B2C), sales platform; richlandgemstones.com. This online platform develops the success of the Company's tanzaniteone.com consumer business and offers retail consumers the opportunity to buy fully certificated loose cut gemstones or set jewellery. For launch, an extensive range of tanzanite products under the newly developed Merelani Tanzanite brand are available. The Company is currently cutting selected sapphires mined to date from its Capricorn operations and anticipates having its first blue and coloured sapphires available on richlandgemstones.com in September.

Chief Executive Officer, Bernard Olivier said: "Despite the disappointment of the production delay during the first few months of ramp up I believe we made the correct decision in delaying the first sight sale. Our product display at the June 2015 Hong Kong Jewellery Show, was well received by major gemstone trade buyers, manufactures and distributors. We shall be hosting a number of minesite visits over the next few months as part of our brand development programme. This will enable industry players to see the Capricorn Sapphire mine, plant and grading facilities in operation. I am also delighted to announce the launch of our new online retail website richlandgemstones.com, which allows consumers to buy fully certificated and ethically sourced cut stones, loose or set with our first sapphires expected to be available online by September."

For more information please contact:

 
 Bernard Olivier           Mike Allardice 
 Chief Executive Officer   Group Company Secretary 
 +61 (0) 4089 48182        +852 91 864 854 
 
 Nominated Advisor &       Laurence Read 
  Broker (AIM) 
 RFC Ambrian Limited       Corporate Development and Communications Officer 
 Samantha Harrison         +44 (0) 20 3289 9923 
 +44 (0) 20 3440 6800 
 
 

Notes to the Editor:

Capricorn Sapphire Project Summary

The purpose-built alluvial processing plant is one of the largest of its kind in the southern hemisphere, capable of treating up to 200 loose cubic metres (LCM) per hour. The Capricorn Sapphire mine consists of two new mining leases comprising about 490 hectares and associated assets and the project is 100% owned by Richland. The mining leases contain a JORC (2004) Measured Sapphire Resource of approximately 21.6 million grams (109 million carats) of sapphire, based on extensive previous exploration and following a brief period of mining by the previous owners. 'Fancy' coloured sapphire has traditionally been recovered from the project but the Board believes the value from Capricorn Sapphire comes from the consistent production of standard stone types sought in the manufacture of mainstream jewellery manufacture.

In 2015, Richland sold or closed all of its operation in Tanzania relating to gemstone mining. Previously the Company had operated the world's largest and most advanced tanzanite mine. The mine was sold as conditions in Tanzania ceased to permit us to operate to standards of safety of employees and security of operations, which we deemed essential for an ethical business.

The development of the Capricorn Sapphire project forms part of the Company's strategy to develop profitable gemstone operations, utilising its experience in coloured gemstone extraction, through efficient cost controls. The project offers a significant opportunity for Richland to develop a low cost, coloured gemstone operation selling fully certificated gemstones to the global market place. Queensland, Australia is a long established area for major mining operations, hosting one of the world's major sources for coal. With well-established legislation and permitting for mining in place, Queensland offers significant scope for the creation of a major coloured gemstone hub to promote ethically mined, natural Sapphire.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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