Stuart, what is your read on the latest news release?
VANCOUVER, May 10 /CNW/ - At the Annual General Meeting of Asia Sapphires
Limited (APL: VSE) held on the 30th April 1999 in Vientiane, the capital of
Lao, PDR, all resolutions put forward by the management were passed.
Chairman's Report. Year ended 31st December 1998.
On July 21 1994 Gem Mining Lao PDR Co. Limited (GML) signed an agreement
with the government of Lao People's Democratic Republic (Lao PDR) which
allowed the company to explore and exploit sapphire in a 72 km(2) concession
area in Bokeo Province, northwest Laos. During the period August 2, 1994 to
December 31, 1996, the company performed surveys and feasibility studies at
various sites in the area and discovered gem quality sapphire. In accordance
with the agreement, the company then relinquished approximately 87.5% of the
original concession area and commenced mining in 1997.
The agreement allows the company to hold areas containing commercially
viable sapphires for a period of 15 years with the right to extend for a
further 10 years.
During 1997 and for the first half of 1998 mine production gradually
increased and was backed by increased cutting facilities situated in Vientiane
the capital of Lao PDR.
No significant sales were made during this period of establishment. On
the 23rd June 1998 at a meeting of the shareholders of Prescott Resources Inc.
(Prescott, a company listed on the Vancouver Stock Exchange), a reverse
takeover was approved. The Board of Directors was replaced and the share
capital of Prescott was expanded by the issue of a further 10,350,000 common
shares to ultimately effect the acquisition of GML.
During the 6 months to 31 December 1998, cutting increased to allow sales
of $US600,000 during the period, mostly in sample batches, to large jewellery
manufacturers who were testing the quality and our ability to deliver large
quantities of sapphires over the long term.
D.Swarovski & Company, one of the world's foremost gem processing
companies based in Austria, and famous for their crystal products amongst
others, visited our mine site in 1998, soon after our life commenced as a
public company and expressed great interest in various aspects of our
operations.
This early visit culminated many months later in a forward sales
agreement to supply vast quantities of preform sapphire pieces over a
long-term period. To assist us meet their requirements, D.Swarovski & Co.
agreed to advance $US 1.9 million to assist us to double production at the
mine and quadruple cutting in Vientiane.
Within a matter of weeks a new mining plant will be commissioned in an
area approximately 4 km south of our existing plant, which will continue in
full production processing daily over 2,000 m(3) of sapphire-bearing gravel
wash.
With the new plant in full production the company will have the capacity
to mine and wash over 5,000 m(3) of sapphire-bearing gravel daily. In
Vientiane a new factory (Number 3) has been commissioned to allow for a
quadrupling of cutting and preform capacity to meet existing orders and to
allow for supply to other major world gem processing companies.
Our total employment has risen rapidly to 450, making the company one of
the foremost mining companies in Lao PDR.
Following negotiations among Provincial Government officials, GML and
local rice farmers, land use compensation and restoration agreements were
entered into. The rice farmers get two years compensation for loss of
production, plus they receive back approximately 30% more paddy field, fully
formed and terraced, with the top soil saved and replaced ready for immediate
rice planting.
The Vancouver Stock Exchange has not reviewed and does not accept
responsibility for the adequacy of the content of the information contained
herein. The statements made in this press release may contain certain
forward-looking statements that involve a number of risks and uncertainties.
Actual events or results may differ from the company's expectations.
Asia Sapphires Limited
6-8 Sihom Road, Vientiane, Lao PDR
Phone +856 21 21 3293 |
