TIDMKRS
RNS Number : 4126S
Keras Resources PLC
20 December 2016
Click on or paste the following link into your web browser to
view the associated PDF document:
http://www.rns-pdf.londonstockexchange.com/rns/4126S_-2016-12-20.pdf
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
20 December 2016
Keras Resources plc ('Keras' or 'the Company')
High Grade Gold Intersected at Klondyke
and Update to Tribute with KalNorth
Keras Resources plc, the Australian gold mining company, is
pleased to provide an update on assay results from the first two
holes of the reverse circulation ('RC') drilling programme
completed in November 2016 at the Company's 100% owned, flagship
Klondyke Gold Project ('Klondyke') in the East Pilbara District of
Western Australia ('WA').
Highlights
-- First two holes drilled at the satellite Copenhagen deposit
at Klondyke and assays for a further six holes on the main Klondyke
trend are still pending
-- Holes drilled to date intersected thick, high grade gold mineralisation:
o Hole KKC001: 18m @ 6.3g/t gold ('Au') from 33m (incl. 6m @
9.27g/t Au from 34m)
o Hole KKC002: 9m @ 6.9g/t Au from 49m (incl. 6m @ 9.47g/t Au
from 49m)
-- Drilling designed to confirm known mineralisation ahead of
resource drill programme planned for early 2017 to extend current
JORC compliant mineral resource estimate of 5.6Mt at 2.08g/t gold
('Au') for 374,000oz
-- Potential for the discovery of additional mineralisation
following anomalous footwall intercepts in KKC002 (3m @ 1.06g/t Au
from 69m and 2m @ 0.16g/t Au at end of hole) - to be followed up in
future work programmes
-- Rock sample results from recently completed mapping programme
highlight potential for entire 7.5km strike length being
mineralised - current resource confined to just 2km of the main
7.5km strike. Results include:
o 56g/t Au peak value at Copenhagen
o 10g/t Au samples at eastern and western extremities of main
lease package, with multiple high grade assays between
-- Tribute with KalNorth Gold Mines Limited ('KalNorth') over
the Lindsay's Project ('Lindsay's') deposit terminated, third party
costs of Keras reimbursed totalling A$120,000
Keras Managing Director Dave Reeves said,
"It is rare to find such wide, high grade intercepts so near to
the surface and these results from the two Copenhagen drill holes
continue to support our belief that our flagship Klondyke Gold
Project has the potential to become a significant gold deposit.
Drilling has confirmed the historic intercepts and builds
confidence in the database as we identify targets for our 2017
drill programme with the intention of extending the current
resource estimate of 5.6Mt at 2.08g/t Au for 374,000oz. Copenhagen
is open in most directions and in the recently completed mapping
and sampling programme, visible gold was identified in a chip
sample 400m to the north of the drilled area. A 3g/t Au rock sample
collected from outcrop in an area of no historic workings more than
300m south east of the drilled area has also highlighted the
excellent upside we see in this area, indicating the strong
potential to build upon the current resource. The entire project
area has seen limited systematic modern exploration over extensive
strike lengths due to its previous fragmented ownership, creating
significant upside opportunity for Keras. We look forward to
delivering upon these objectives in the New Year.
"Alongside Klondyke, the Company continues to investigate
near-term production projects that meet our investment criteria and
in line with this has established a strategic portfolio of joint
venture / tribute mining operations. After careful review and
discussions with KalNorth, with whom Keras has a tribute mining
agreement, the parties have agreed to terminate the agreement
covering the Lindsay's deposit and KalNorth has reimbursed Keras
all third party fees incurred as part of the study."
Further Details
Results from the first two holes (of an eight hole programme)
have been received. The holes were drilled under the Copenhagen pit
to confirm historic gold intercepts. Results highlight the
potential for resumption of mining at Copenhagen, with high grade
mineralisation confirmed directly beneath the small historic open
cut. Extensional drilling and further check drilling is planned in
this area next year as it hosts high grade, potentially
open-pittable mineralisation.
Figure 1 - KKC001 - see PDF link
Figure 2 - KKC002 - see PDF link
An RC drilling programme was implemented at Klondyke in November
2016. Two holes (for 140m) were drilled at Copenhagen, with an
additional six holes (for 402m) drilled at points along the
Klondyke trend. Hole details are listed in Table 1.
Table 1: Drill hole details
Depth
HoleID Prospect Tenement East North RL (m) Dip Azimuth
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC001 Copenhagen M45/240 791817 7641411 241 60 -61 216.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC002 Copenhagen M45/240 791801 7641439 244 80 -60 206.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC003 King M45/669 800102 7637648 287 60 -60 31.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC004 King M45/669 799920 7637755 295 52 -75 31.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC005 King M45/669 800200 7637628 290 50 -60 31.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC006 King East M45/547 800421 7637575 298 90 -60 211.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC007 Kopcke M45/670 801175 7637141 306 60 -60 36.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC008 Kopcke M45/670 801052 7637184 304 90 -75 31.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
Sampling, sample preparation and analysis followed industry best
practice, incorporating a comprehensive suite of QA/QC samples -
blanks, analytical standards and field duplicates. Analytical
samples were collected from a cone splitter connected to the drill
rig's cyclone, with the remaining sample collected in green plastic
bags for future reference.
Samples were transported from Port Hedland to Perth using a
commercial contractor, and delivered to Nagrom for analysis. After
sorting and logging, samples were dried, crushed, split (if in
excess of 2kg) and pulverised. A 50g sub-sample was collected and
analysed for gold by fire assay with an ICPOES finish.
Mapping Programme
A detailed mapping programme has also been carried out over the
last 2 months. Key outcomes of the campaign were:
-- Visible gold noted at numerous points along the Klondyke
trend and along strike of the mineralising structure north of the
Copenhagen pit; note that analytical samples were not collected if
visible gold was observed
-- High grade (10g/t) samples collected at each end of the
Klondyke lease package, confirming gold potential over the full
7.5km strike length of the main shear
-- Subsidiary shears and splays mapped, highlighting potential
for additional mineralisation outside of the main shear
-- Enhanced understanding of controls on gold mineralisation,
will be used to assist drill planning and future exploration
campaigns
A total of 49 rock samples were collected and submitted to
Nagrom for analysis. Samples were assayed for gold by 50g fire
assay with ICPOES finish and for a multi-element suite by mixed
acid digest with ICPMS finish. The map below (figure 3) shows gold
results for the rock samples.
Figure 3 - Gold results for rock samples collected during
mapping - see PDF link
KalNorth Tribute
As part of the Company's strategy to focus management's time on
high margin mining projects and the flagship Klondyke Project, the
Company's Tribute Mining Agreement over Lindsay's in the Western
Australian Goldfields with KalNorth has been mutually terminated.
Under the terms of the termination Keras has been refunded all
third party costs totalling A$120,000. In addition, as the Company
focuses on advancing the Klondyke project, and as it has currently
ceased tribute operations, Peter George, Keras' Chief Operating
Officer, has resigned. The Company would like to thank Peter for
his contribution to the Company during its early days of gold
mining.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**S**
For further information please visit www.kerasplc.com, 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
Susie Geliher/Charlotte Page St Brides Partners Limited +44 (0) 20 7236 1177
Notes
Keras Resources plc is AIM's only Australian gold mining
company. Keras has a portfolio of owner-operated gold interests and
cash generative joint venture gold projects. The Company's strategy
is focussed on advancing its owner-operator gold interests towards
production whilst concurrently identifying and assessing low risk,
high margin joint venture operations to enable continuing cash
flows. The Company benefits from an experienced management team,
which has extensive gold experience and is based in Perth, reducing
execution risk.
Gold Projects
Klondyke Project Area - 100% owned gold development project in
Western Australia
-- Current resource of 5.6Mt at 2.08g/t gold ('Au') for
374,000oz confined to just 2km of the main 7.5km shear strike
-- Right to mine contiguous Haoma tenements covering 650
hectares with excellent discovery potential
-- Active growth strategy - continue to assess additional
opportunities in the project area to add contiguous lease areas to
the critical mass that has been consolidated
Tribute Gold Projects
Keras has a portfolio of tribute mining agreements in the
Kalgoorlie Goldfield, Australia and is targeting 20,000-30,000oz
gold per annum from these assets.
Wider Portfolio
Keras is currently awaiting a mining permit for its Nayega
Manganese Project in Togo. Once received it will look to develop
the asset into a low-cost export mining operation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCBRBDDCBDBGLG
(END) Dow Jones Newswires
December 20, 2016 12:30 ET (17:30 GMT)
Keras Resources (LSE:KRS)
Historical Stock Chart
From Apr 2024 to May 2024
Keras Resources (LSE:KRS)
Historical Stock Chart
From May 2023 to May 2024