Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining
6 June 2016
Keras Resources plc ('Keras' or 'the Company')
Additional Gold Tribute secured with Norton
Keras Resources Ltd, the Australian gold mining company, is pleased to announce that it has secured an additional deposit under the existing tribute agreement from Paddington Gold Pty Ltd, a subsidiary of Norton Gold Fields ('Norton') to mine the Royal Standard North lease area ('Royal Standard"). The Royal Standard North lease area is located in the of the Mount Pleasant region approximately 20km south of the Grants Patch lease area where the Company is currently undertaking mining in the Western Australian goldfields. Ore from Royal Standard will also be processed at Norton's nearby Paddington processing plant. The preliminary confirmatory drill programme, which was undertaken in May, indicates economic grades and grade continuity. Drill results are included in Table 1 below.
· Royal Standard provides additional mining area with shallow, good gold grade ore that can be accessed rapidly;
· Anticipating between 25,000 to 50,000 tonnes of ore at a grade of approximately 2g/t Au to be defined before mining;
· Successful preliminary drilling campaign including; 10m at 2.2g/t from 12m (RSTGC0002) and 16m at 1.87g/t Au from 14m (RSTGC0003);
· Keras will now commence detailed grade control drilling
· Royal Standard is located on existing granted Mining Lease with Mining proposal approved.
Keras Managing Director Dave Reeves said, "The additional deposit added to the existing tribute agreement with Norton is located close to our existing operations and highlights the mutual benefits of the tribute agreement. Due to its location, existing permits and size, we intend to complete the mining of this deposit in the near-term, subject to satisfactory grade control drill results and final approval of the Project Management Plan by the Department of Mines. Following the commencement of ore mining in April and the receipt of first payment, this is an exciting time for Keras. I look forward to providing further updates on our progress as we focus on building a sustainable cash flow generative gold miner with a growing inventory of low cost deposits."
Table 1: Preliminary Drill Results
Hole No |
From |
To |
Width |
Au g/t |
RSTGC0001 |
8 |
26 |
18 |
0.86 |
Including |
15 |
17 |
2 |
1.88 |
RSTGC0002 |
12 |
26 |
14 |
1.67 |
Including |
12 |
22 |
10 |
2.2 |
RSTGC0003 |
14 |
30 (EOH) |
16 |
1.87 |
Including |
25 |
29 |
4 |
4.44 |
**ENDS**
For further information visit, follow us on Twitter @kerasplc or contact the following:
Dave Reeves |
Keras Resources plc |
[email protected] |
Nominated Adviser |
|
|
Gerry Beaney/David Hignell |
Northland Capital Partners Limited |
+44 (0) 20 3861 6625 |
Broker |
Elliot Hance/ Jonathon Belliss |
Beaufort Securities Limited |
+44(0)20 7382 8415 |
Financial PR |
|
|
Elisabeth Cowell/ Frank Buhagiar |
St Brides Partners Limited |
+44 (0) 20 7236 1177 |
