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Richland Resources plans to mine both tanzanite and tsavorite in the foothills of Mount Kilamanjaro.



  Tanzanite specialist looks complete acquisition of Australian sapphire project


January 9, 2012


Richland Resources, which until recently was known as TanzaniteOne Limited, has reported that it is extending its option to acquire an Australian sapphire project until the end of April, pending its listing on the Dar es Salaam stock exchange.

Richland's venture into the sapphire market is indicative of the corporation's new strategic focus. Building upon its leading position in the tanzanite market, Richland now aims to deliver a wide range of colored gemstones to the market. Thus, in addition to its owning the largest tanzanite mining venture in Tanzania, TanzaniteOne Mining Limited, the corporation is currently pursuing additional interests in Australian sapphires and African tsavorite.

In June last year, Richland entered into an option agreement to acquire an established sapphire project in Australia for an upfront cash fee of Aus. $120,000. Under the option agreement, Richland had an exclusivity period for a minimum of three months and a maximum of six months to conduct its due diligence.

The sapphire project, which comprises two mining leases covering around 490 hectares, had previously been partially mined and produced significant quantities of gemstone quality sapphire. The assets acquired by Richland include the mining licenses, tangible assets, completed exploration, and operational and sales data over the mining license area.

"By mutual consent both sides have agreed to extend the option Richland has over the potential acquisition of this Australian sapphire project," said Richland CEO Bernard Olivier. "The extension allows us to complete our Dar es Salaam listing and complete full due diligence within a comfortable timeframe."

"Following our operational success at our tanzanite mine, which has brought the company back into profit, we are now looking at options to expand our capability into new colored gemstone resources," he added.

Richland's tsavorite project is located 20 kilometers from its tanzanite mine at Merarani, in the area of Arusha in the foothills of Mount Kilamanjaro.The program is focused on locating and defining alluvial, paleo-alluvial and hard-rock sources of green garnet (tsavorite) and other associated minerals of gem quality.

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