Additional Gold Tribute Secured with Norton

RNS Number : 2448A

Keras Resources PLC

06 June 2016

 

 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	[e-mail]
Nominated Adviser
Gerry Beaney/David Hignell	Northland Capital Partners Limited	[phone]
Broker
Elliot Hance/ Jonathon Belliss	Beaufort Securities Limited	[phone]
Financial PR
Elisabeth Cowell/ Frank Buhagiar	St Brides Partners Limited	[phone]

 

END

 

 

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