First Commercial Dispatch of Phosphate Ore
Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining
3 September 2020
Keras Resources plc ('Keras' or the 'Company')
First Commercial Dispatch of High-Grade Phosphate Ore from Diamond Creek
Keras Resources plc, the AIM listed mineral resource company, is pleased to announce an update on progress at the Diamond Creek high-grade direct shipping ore ('DSO'), organic phosphate mine in Utah, USA ('Diamond Creek') and the Nayéga Manganese mine in Togo, West Africa ('Nayéga'). Keras has the right to earn into a controlling 51% interest in Diamond Creek following its acquisition of Falcon Isle Holdings LLC ('Falcon') announced on 30 July 2020 and has an 85% interest in Société Générale de Mines SA which holds the Nayéga exploration permit.
Overview
Diamond Creek
· The US Department of Labor's Mine Safety and Health Administration ('MSHA') completed a two-day inspection and audit on 1 September on site with no safety concerns or violations issued
· First commercial production of -10 mesh (-2mm) organic phosphate product dispatched to customer
· Access roads fully upgraded and lay-down area for run-of-mine ('ROM') ore to be complete by 7 September
· Year 1 ROM production to increase by 50% to 7,500 short tons to ensure that product is available through the winter
· New crushing, milling & screening plant, to be owned and operated by Falcon has been ordered and fabrication has now commenced
· Tranche 2a of USD600,000 loaned to Falcon increasing the Company's current interest in Falcon to 30% (as per announcement on 30 July 2020)
Nayega
· Management trip to Togo planned for 10 September
· Exploration at Ogaro prospect will recommence on 7 September
Keras Resources CEO, Russell Lamming said: "We are now a month into the Diamond Creek acquisition and during that month, in addition to the significant progress on infrastructure, we have mined, toll-processed and dispatched our first high-grade DSO organic phosphate. The successful and swift dispatch of this first commercial material is testament to the quality of Diamond Creek in terms of accessibility, simple processing technology and the quality of the on-site management team.
"With regards Nay é ga, we are very encouraged by the reopening of Togo to international business post the COVID-19 lock-down period. We plan to recommence exploration activities within the next week at the Ogaro prospect, which has previously returned highly encouraging results and we also look forward to a positive and constructive trip to Lomé commencing on 10 September. I will be leading the Keras management team, which will meet key government officials to agree a way forward to production at Nay é ga.
"I look forward to updating the market with developments relating to both our Diamond Creek Mine and Nay é ga Manganese Project in due course."
Further Information
Diamond Creek Phosphate Project
Diamond Creek is a fully permitted, high grade direct shipping ore ('DSO'), low capex organic phosphate mine which achieved first commercial production in late July 2020. The first beneficiated -10 mesh organic product has now been dispatched and forms part of a 770-ton order. Based on recent interest in Diamond Creek's product the Company has decided to increase Year 1 of the phased production ramp up from 5,000 tons to 7,500 tons while maintaining the target of 48,000 tons in Year 5 of commercial production. The increase in planned production does not change the terms of the agreement announced on 30 July 2020.
Current beneficiation is being undertaken through a toll-treating agreement. A new plant, to be owned and operated by Falcon, which has the capacity to process the 5-year 48,000-ton production target, has been ordered and fabrication has commenced. This is expected to be commissioned in the Q4 2020 and will increase both the available capacity and flexibility to produce different sized beneficiated material.
The access roads to both the lay-down area for ROM ore and the upper road to the open-pit have now been upgraded to ensure that mining activities and trucking to the Spanish Fork processing facility can be conducted in a safe and secure environment.
Nay é ga Manganese Project
The Company has recommenced activities at Nayega with exploration at the Ogaro prospect to continue from 7 September 2020. Ogaro is located 5km east-southeast of the main Nayega deposit and 4km south of the previously explored T27 deposit. As announced on 18 September 2018 Pits excavated to test the core area of mineralisation have returned positive results, with best intercepts including 1.76m @ 18.6% Mn from 0m, 2.05m @ 15.8% Mn from 0m and 2.00m @ 16.2% Mn from 0m.
In addition, management will be travelling to Lomé, the capital of the Republic of Togo, on 10 September to meet with government officials and local authorities. It is expected that during these meetings, a roadmap to production will be agreed which will ensure that the necessary procedures and permissions are in place to create a safe work environment at Nay é ga when the Exploitation Permit is granted.
**ENDS**
For further information please visit www.kerasplc.com , follow us on Twitter @kerasplc or contact the following:
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Russell Lamming |
Keras Resources plc |
info@kerasplc.com
|
|
Nominated Adviser & Joint Broker Ewan Leggat / Charlie Bouverat
Joint Broker Damon Heath / Erik Woolgar
|
SP Angel Corporate Finance LLP
Shard Capital Partners LLP
|
+44 (0) 20 3470 0470
+44 (0) 207 186 9900
|
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Financial PR Susie Geliher / Cosima Akerman |
St Brides Partners Ltd |
+44 (0) 20 7236 1177 |
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