Funded Bulk Sampling Programme at Nayega Project

RNS Number : 4031V

Keras Resources PLC

23 July 2018

 

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

23 July 2018

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

Approval to Commence Funded Bulk Sampling Programme

at Nayega Manganese Project in Togo

Keras Resources plc, the AIM listed mineral resource company, is pleased to announce that, as a critical step in the Exploitation Permit approval process, it has been granted permission to undertake a bulk sampling metallurgical testwork programme at the Nayega Manganese Project in northern Togo ('Nayega').  This will include the processing of 10,000 tonnes of beneficiated manganese ore ('Mn'), by a major producer of manganese-based alloys, for large scale metallurgical testwork, to assess the suitability of the ore in their Mn smelting facilities.  

Key Points

·      The testwork, which is estimated to cost US$1.5m, will be fully funded by the end-user.  This includes the capital equipment, operating and logistics costs and management fees. Initial funding has been made available with immediate effect to ensure that long-lead capital items and management costs are covered;

·      For the purpose of the exercise, the Company is targeting a beneficiated +10mm -75mm Mn product from a simplified washing, scrubbing and screening operation.  This will provide real-time data with respect to the operating costs and logistics of exporting beneficiated manganese to third party end-users; and

·      Keras remains committed to developing its manganese assets in Togo into a producing mine with the opportunity to develop a low-capex, open pit operation, producing beneficiated lump and fines manganese ore operation.

Russell Lamming, Chief Executive Officer of Keras, commented, "Over the past several months we have been engaged in constructive discussions with the Ministry of Mines and other regulatory bodies in Togo on how to progress the Nayega project into a profitable mine.  The approval for a large-scale bulk sample is a significant step forward in those discussions.  In parallel with the in-country discussions, we have secured a funding agreement with a third-party end-user that potentially may share significant synergies with a West African manganese producer.  We believe this is a huge endorsement for both the Project and our team's ability to identify quality assets and we look forward to working closely with the end-user through the metallurgical testwork process.  We have completed the tender process with local mining contractors and logistics companies who have capacity to commence the operation immediately and will be awarding the contracts in late July. 

"I look forward to keeping shareholders updated on a regular basis not just at Nayega, but also from Calidus as it looks to advance its targeted 1 million-ounce JORC gold resource at its Warrawoona Project in Western Australia."

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:

Russell Lamming	Keras Resources plc	[e-mail]
Nominated Adviser / Joint Broker Ewan Leggat / Charlie Bouverat	SP Angel Corporate Finance LLP	[phone]
Financial PR Susie Geliher / Charlotte Page	St Brides Partners Ltd	[phone]

Notes

Keras Resources plc is focused on building a strategic portfolio of resource assets. The Company provides investors with exposure to a strategic portfolio of development assets, including manganese, cobalt and nickel in Togo, West Africa, and also has a significant interest in a highly prospective gold exploration and development portfolio in Australia.

Keras benefits from a highly skilled management team, which has extensive operational experience in Africa and Australia with proven success in advancing assets up the value curve.

 

END

 

 

MSCMMGZNLZMGRZM