First Blast at Grants Patch Gold Tribute
`Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining
17 March 2016
Keras Resources plc ('Keras' or 'the Company')
First Blast at Grants Patch
Keras Resources plc, the Australian gold development company, is pleased to announce that it has completed its first blast at the Anomaly 22 project, which is located in the Grants Patch Gold Tribute lease area ('Grants Patch") and lies 30km north of Kalgoorlie in the prospective Western Australian goldfields. Mining is expected to commence during the week commencing 21 March 2016 as part of an initial bulk sample of up to 10,000t to confirm grade continuity, mining practices and ore delivery mechanisms to the Paddington Mill.
Highlights
· First blast at Anomaly 22 within four months of signing Tribute Agreement underpins strategy of fast tracked, lower risk cash flow generation; and
· Gold revenues in Q2 2016 firmly on track following the first blast at Anomaly 22 project
Keras Managing Director Mr. Dave Reeves said, "In November 2015 the Company embarked on a new strategy to mitigate the cyclical risk of the commodity sector through the fast tracked development of gold Tributes in Australia. The first blast at the Anomoly 22 project, within four months of the strategic re-alignment, is a major milestone for the Company. During that time the Company has also secured two additional Tribute Agreements and looks forward to achieving its goal of extracting 20,000-30,000 ounces of gold over the course of the next year."
**ENDS**
For further information visit www.kerasplc.com, follow us on Twitter @kerasplc or contact the following:
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Dave Reeves |
Keras Resources plc |
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Nominated Adviser |
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Gerry Beaney/David Hignell |
Northland Capital Partners Limited |
+44 (0) 20 7382 1100 |
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Broker |
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Elliot Hance/ Jonathon Belliss |
Beaufort Securities Limited |
+44(0)20 7382 8415 |
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Financial PR |
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Elisabeth Cowell/ Frank Buhagiar |
St Brides Partners Limited |
+44 (0) 20 7236 1177 |
Notes
Keras Resources plc is an AIM quoted, resource development company. The Company is focussed on advancing lowest quartile, low capex deposits which benefit from proximal established infrastructure up the development curve and into production. Keras plans to commence production at its Australian Gold Project in Q2 2016 and then use this cash flow towards to expand gold production further.
At Nayega, Keras has concluded a Bankable Feasibility Study and awaits award of the mining permit. The Bankable Feasibility Study indicates that Nayega could produce 250,000 tonnes per year of manganese concentrate at 38%. The Company will investigate bringing the mine into production on grant of the mining permit to generate further cash flows for the Company.
The Company also holds iron ore and manganese projects in Gabon and South Africa and is actively assessing ways to realise value from these assets.
Keras has 1,193,794,390 shares in issue. The Directors have subscribed for and purchased approximately 25.0% of the issued share capital of the Company and are therefore aligned with shareholders' interests.
Glossary
A$ - Australian dollar
Au - gold
g/t - grams per tonne
k - thousand
km - kilometre
oz - ounce
t - tonnes
tribute agreement - entitlement to work a mine or a portion of a mine under an agreement with
the lessee claimholder or proprietor to pay or receive from such titleholder a proportion or
percentage of the produce of the mine or of the value of such produce
This information is provided by RNS
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