Keras Resources PLC Australian Gold Production Update (5096D)
07 July 2016 - 7:00AM
UK Regulatory
TIDMKRS
RNS Number : 5096D
Keras Resources PLC
07 July 2016
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
7 July 2016
Keras Resources plc ('Keras' or 'the Company')
Gold Production Update
Keras Resources Ltd, the Australian gold mining company, is
pleased to announce that it has completed mining at the Anomaly 22
and Accord projects, located in the Grants Patch Gold Tribute lease
area ('Grants Patch'). The Company is now moving the mining fleet
to the nearby higher-grade Wycheproof project, which is located
20km north-east of Grants Patch.
Highlights
-- Open pit mining will commence shortly at the higher grade Wycheproof project; and
-- Permitting at the Prince of Wales ('PoW') and Lindsay's
projects are currently on schedule and within budget, which should
allow for works to commence in Q3 2016.
Keras Managing Director Mr. Dave Reeves said, "The completion of
mining at Anomaly 22 and Accord is a significant milestone in our
mining history. In addition to cash flow generated, the open pit
operations have also allowed us to fine tune the logistics
associated with tribute mining and toll processing ahead of moving
into the higher-grade Wycheproof, deposit located close to Grants
Patch. This experience coupled with the appreciation in the gold
price bodes well for the future of the Company. A more detailed
quarterly production report on the gold operations will be issued
once all costs and production estimates are reconciled.
"Permitting and pre-development work at the PoW and Lindsay's
project is ongoing in order to enable us to commence work in Q3
2016, which should allow us to hit our steady state production
target of 30,000 ounces of gold (Au) per year by mid-2017."
At the high grade PoW underground mine, the Company will adopt a
staged approach with initial mining occurring under a bulk sample
permit to check on the grade and geometry of the mineralisation. To
facilitate this, the following permits are required:
-- The Infrastructure Programme of Works: this has been approved
which allows the Company to move the required personnel on-site to
commence construction of the mine offices, roads and associated
infrastructure.
-- A Programme of Works to mine an initial bulk sample of
10,000t has been submitted and is expected to be awarded later this
month.
-- A Project Management Plan ('PMP') which details the safety
and operating commitments for the refurbishment of the decline and
initial investigation of the geotechnical and geological conditions
has been submitted and approval is expected next month.
-- Once the bulk sample area has been accessed, the PMP will be
updated to allow for the mining operations once conditions are
assessed. It is expected that on submission, this will take
approximately one month to approve based on previous
submissions.
-- In parallel, a Mining Proposal ('MP'), which covers all
environmental issues will be submitted. This MP is not required for
the bulk sample but must be in place for the main mining operations
and is expected to be approved in Q4 2016. This will be the final
permit required to move from the bulk sample area into the main
mining area.
At Lindsay's, the Company wishes to similarly adopt a staged
approach to the development of the Parrot Feathers underground mine
with initial mining occurring under a bulk sample permit to check
on grade and geometry of the orebody. To facilitate this, given the
existing mining approvals, only the following permits are
required:
-- A Programme of Works to extract an initial bulk sample of
10,000t, is intended to be submitted this month.
-- A PMP that details the safety and operating commitments for
the bulk sample will be submitted and approval is expected this
quarter.
-- Once the bulk sample area has been accessed, the PMP will be
supplemented to allow for the mining operations once conditions are
assessed. It is expected that on submission, this will take
approximately one month to approve based on previous
submissions.
-- In parallel, a MP which covers all environmental issues will
be submitted. Due to the MP for the open pits being already
approved and due to the fact no further environmental disturbance
will occur, this approval once submitted should be quickly
forthcoming.
In addition to this, the Company is finalising formal
documentation with KalNorth that covers both the open pit and
underground operations and is looking at the optimal milling
alternatives for Lindsay's and Wycheproof. These agreements are
required to be in place before any works can commence.
This announcement contains inside information for the purposes
of Article 7 of Regulation 596/2014.
**ENDS**
For further information visit, follow us on Twitter @kerasplc or
contact the following:
Dave Reeves Keras Resources plc dave@kerasplc.com
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
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLAKODPPBKKAOK
(END) Dow Jones Newswires
July 07, 2016 02:00 ET (06:00 GMT)