TIDMKRS
RNS Number : 9445A
Keras Resources PLC
30 March 2017
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
30 March 2017
Keras Resources plc ("Keras" or "the Company")
Applications for Cobalt and Nickel Licences
Keras Resources plc is pleased to announce its intention to
target exposure to the high growth battery market with emphasis on
the metals used in the production of cathodes. A total of five
exploration licence applications have been submitted over 1,000
square kilometres of ground in West Africa that cover previously
discovered cobalt and nickel mineralisation.
Highlights
-- Five applications submitted over vacant ground in West Africa
that cover known cobalt and nickel mineralisation
-- Average rock chips from mineralised zone grade at 0.82%
nickel ("Ni") and 0.19% cobalt ("Co"), with highs of 1.4% Ni and
0.25% Co
o Equates to a 4.5g/t equivalent gold grade based on current
metal prices
-- Cobalt prices have increased 100% in the past six months and
supply/demand fundamentals support onward positive price
movement
-- Cobalt often reported as the most critical metal from a
supply perspective for the battery industry
-- Grant of licences would provide AIM investors with a unique
opportunity to gain exposure to the high-growth battery industry
through the development of three complementary commodities: cobalt,
nickel and manganese
Keras Managing Director Dave Reeves said, "Following the recent
announcement regarding the funding of our gold assets via its
listing on the ASX, we have been investigating various commodities
and parallel strategies for our non-gold assets. This review
highlighted the critical importance of a selection of commodities
vital to the future expansion of the battery industry. These
commodities, which have been referenced by industry players such as
Elon Musk of Tesla fame, include nickel, cobalt, lithium and
manganese.
"As investors will be aware, the rise of lithium and its
influence over the London markets have been widely reported,
however, more specialist commodities including cobalt have been
overlooked; despite recent reports that cobalt is the most critical
material for the development of the battery industry. In addition,
the review highlighted the strategic importance of manganese in the
production of cathodes, a commodity Keras already has exposure to.
As a result, our team, in conjunction with geological consultants,
have identified an area that was open for pegging that has known
cobalt and nickel mineralisation outcropping at surface. We believe
the granting of the exploration licence should be complete in Q2
this year and look forward to commencing works on this high value
commodity.
"We believe the battery market will be one of the fastest
growing consumers of metals in the next decade and are positioning
ourselves to be a supplier of cathode materials to this expanding
industry."
Further Information
The area of interest is comprised of sericite schist, chlorite
sericite schite and quartzite injected by ultramafic rocks.
Numerous gossans and gossaniferrous schist outcrop surrounding the
mafic and the ultramafic bodies. As a result, the target
mineralisation are sulphide Ni/Co orebodies. Initial exploration
will focus on re-processing of existing data, trenching and a
limited drill campaign.
The priority target has several rock chips with results as shown
in the table below. The in-situ value of the cobalt mineralisation
based on the average of these grades is greater than the nickel
component and is equivalent to 4.5g/t of gold based on current
prices.
Nickel Cobalt Nickel Cobalt Total Au Eq
% % Value Value Value g/t
USD/t USD/t USD/t
--------- ------- ------- ------- ------- ------- ---------
Sample
1 0.82 0.25 86.10 125.00 211.10 5.25
--------- ------- ------- ------- ------- ------- ---------
Sample
2 1.43 0.22 150.15 110.00 260.15 6.47
--------- ------- ------- ------- ------- ------- ---------
Sample
3 0.42 0.136 44.10 68.00 112.10 2.79
--------- ------- ------- ------- ------- ------- ---------
Sample
4 0.6 0.162 63.00 81.00 144.00 3.58
--------- ------- ------- ------- ------- ------- ---------
Average 0.82 0.19 85.84 96.00 181.84 4.52
--------- ------- ------- ------- ------- ------- ---------
Price 10,500 50,000 1,250/oz
--------- ------- ------- ------- ------- ------- ---------
There can be no guarantee that the licence applications will
result in a favourable outcome for Keras. Further announcements
regarding the status of the licence applications and the licence
area will be made as appropriate.
Further Information on Battery Cathodes
There are five main types of lithium-ion batteries, three of
which contain cobalt, two of which contain manganese and two which
contain nickel.
Battery Type Cobalt / Manganese
Usage
=================================== ====================
Lithium Cobalt Oxide (LiCoO(2) 60% Co
)
----------------------------------- --------------------
Lithium Nickel Manganese 29% Co
Cobalt Oxide (LiNiMnCoO(2) 27%Mn
)
----------------------------------- --------------------
Lithium Nickel Cobalt Aluminium 9% Co
Oxide (LiNiCoAlO(2) )
----------------------------------- --------------------
Lithium Manganese Oxide 61% Mn
(LiMn(2) O(4) )
----------------------------------- --------------------
Lithium Iron Phosphate (LiFePO(4) No cobalt or
) manganese
----------------------------------- --------------------
*Source: Cadex Electronics
Over 50% of the world's cobalt production derives from the
Democratic Republic of Congo, which has high-risk to continuity of
supply and price fluctuations due to political instability, with
the majority of producing cobalt assets being Chinese owned. Most
cobalt is mined as a by-product of copper and nickel mining meaning
it is slower to respond to market dynamics as it is often more
dependent on the primary minerals' economics.
Commodity research group CRU estimates that cobalt demand will
exceed 100kt per annum in 2017 and grow at an average of 5% per
annum over the next 10 years. During this time, cobalt usage in
lithium ion batteries is estimated to grow from 37% to over 60% of
the refined cobalt market.
New Corporate Presentation
The Company would also like to announce that an updated version
of its corporate presentation is now available on the Company's
website at www.kerasplc.com. The presentation contains no new
material information that has not already been disclosed.
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 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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