Expansion of Prospective Australian Gold Footprint

RNS Number : 5675D

Keras Resources PLC

28 April 2017

 

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining

28 April 2017

Keras Resources plc ("Keras" or "the Company")

Expansion of Prospective Gold Footprint in Western Australia

Keras Resources plc, the AIM listed mineral resource company, is pleased to announce that its wholly owned gold subsidiary, Keras (Gold) Australia Pty Ltd ("Keras Australia") has entered into an option agreement to acquire one exploration licence and two exploration licence applications ("the New Licences") in the East Pilbara district of Western Australia.  The New Licences are adjacent to Keras Australia's Warrawoona Gold Project, which has a current Inferred Mineral Resource Inventory of 5.8Mt @ 2.2g/t Au for 410,000oz. To view the press release with the illustrative diagrams please use the following link:

Highlights

·      Option granted to Keras Australia over one exploration licence and two exploration licence applications that cover a combined 7,363ha of prospective ground adjacent to the flagship Warrawoona Gold Project.

·      Licences cover:

o  along-strike extensions to the Klondyke shear, which hosts the majority of Keras' gold resource, and

o  a significant portion of the adjacent historic Marble Bar Goldfield, which recorded production totalling 170,000 ounces of gold from 196,500 tonnes of crushed ore to 1972

·      Licences contain 35 recorded areas of historic workings;

·      Option grant is subject to successful listing of Keras Australia on the ASX as detailed in the Company's announcement of 21 March 2017.

Keras Managing Director Dave Reeves said, "The option over these licences is another key step in consolidating exploration ground that has significant potential to increase Keras Australia's gold resource inventory.  The optioned licences cover highly prospective ground and a substantial number of historic gold workings.  As well as covering extensions to the Klondyke shear (which hosts a resource totalling 410,000 ounces of gold), the licences cover most of the historic, high grade Marble Bar Goldfield.  With additional tenement holdings in the area, these additional licences will increase the potential gold inventory of Warrawoona to improve the likelihood of a stand-alone operation being developed."

Further Information

A summary of the licences and a location map are shown below.

Type Area (ha) Graticular Blocks E45/4555 Granted 1,920 6 E45/4556 Application 4,483 14 E45/4843 Application 960 3

Tenements ELA 45/4843 and EL 45/4555 cover approximately five strike kilometres of the Klondyke shear system north-west of Keras' tenements.  Recorded workings in the two tenements cover the historic Salgash mining centre and envelopes the Apex, where underground drilling early in the 20th century returned:

·      3.8m at 14g/t

·      2.9m @ 9g/t

·      2.4m @ 10g/t

Tenement application ELA 45/4556 covers part of the Marble Bar Goldfield.  Recorded production for the goldfield (including the Halley's Comet group) until 1972 was 170,000 ounces of gold from 196,500 tonnes of ore crushed at an average grade of 26.9g/t Au.  Workings covered by the ELA occur on a faulted contact between the Homeward Bound Granite to the east and Duffer Formation dacitic volcanic rocks to the west. The contact extends roughly north-south for approximately 6km through the tenement.  The Geological Survey of Western Australia 1:100,000 scale geology map shows a 'carbonate-altered metamafic rock' along the trace of the faulted contact.  Carbonate alteration is an important component of large orogenic gold systems throughout the world and is an encouraging indication of the tenement's prospectivity.

Little modern exploration has been conducted in either area.  The Company's technical team will compile historic data and apply knowledge gained from exploration of the Warrawoona Gold Project to identify targets for follow up work.

Figure 1: Location of New Tenements (see PDF)

http://www.rns-pdf.londonstockexchange.com/rns/5675D_-2017-4-27.pdf 

Transaction Details 

On the granting of each and any of the licences, and subject to due diligence and the successful listing the Company's gold assets via Calidus Resources ("Calidus") on the ASX, a consideration as follows is payable:

·      Immediately to earn 50% of the licences pay A$2,000 and issue 10,000 shares in Calidus  per graticular block (230,000 Calidus shares assuming all 23 Blocks are issued);

·      Within two years of grant to acquire 100%, pay a further A$5,000 and issue 20,000 shares in Calidus per graticular block (460,000 Calidus shares assuming all 23 blocks are issued); and

·    A 1.5% royalty will also be payable on all production from any of the licences.

This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014.

**ENDS**

For further information please visit www.kerasplc.com, 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]
Damon Heath/Erik Woolgar	Shard Capital Ltd	[phone]
Tom Curran/Ben Tadd	SVS Securities	[phone]
Financial PR
Susie Geliher/Charlotte Page	St Brides Partners Limited	[phone]

 

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