Keras Resources PLC Calidus Announces 74% Increase in Resource (6085Z)
18 December 2017 - 6:00PM
UK Regulatory
TIDMKRS
RNS Number : 6085Z
Keras Resources PLC
18 December 2017
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
18 December 2017
Keras Resources plc ('Keras')
Calidus Announces 74% Increase in Resource to 712,000 ozs Au
241,250,000 Ordinary Calidus Shares Issued to Keras on
conversion of Performance A Shares
Keras Resources plc, the AIM listed mineral resource company, is
pleased to provide an update following an announcement published by
Calidus Resources Limited ('Calidus'). Calidus has announced a
substantial increase in Mineral Resources and conversion of
Inferred Mineral Resources to Indicated Mineral Resources at the
Company's Warrawoona Gold Project located in the Pilbara of Western
Australia (the "Warrawoona Project").
The total Mineral Resource at the Warrawoona Project, reported
and classified in accordance with the JORC Code (2012) is 10.5 Mt
at a grade of 2.11 g/t gold (Au) and contains 712,000 ozs Au. This
has triggered the milestone for the conversion of 241,250,000
Performance A Shares held by Keras in Calidus to ordinary shares in
Calidus.
HIGHLIGHTS
-- Total Mineral Resource, reported and classified in accordance
with the JORC Code (2012) is 10.5 Mt at a grade of 2.11 g/t gold
(Au), containing 712,000 ozs Au, an increase of 74% over the
previous estimate
-- Maiden Indicated Mineral Resource of 8.4 Mt at a grade of 2.01 g/t Au for 541,000 ozs Au
-- Conversion of 241,250,000 Performance A Shares held by Keras to ordinary shares in Calidus
-- Resource provides a solid base for further resource expansion in the coming year
-- Well-funded post the recent AU$10m capital raise
-- Calidus has received Exploration Incentive Scheme Grant of
A$140,000 to conduct deeper drilling at Klondyke
Table 1: Mineral Resource Estimate - Warrawoona Gold Project
Deposit Cut-off Indicated Inferred Total
----------- ------------------ ------------------- --------------------
Au Mt g/t Ozs Mt g/t Ozs Mt g/t Ozs
g/t Au Au Au
----------- ------- --- ---- ------- --- ----- ------- ---- ---- --------
Klondyke 0.5 8.2 2.02 532,000 1.7 2.25 122,000 9.9 2.06 654,000
Copenhagen 0.5 0.2 6.12 36,000 0.2 6.12 36,000
Fieldings
Gully 0.5 0.2 1.65 9,000 0.2 1.65 13,000 0.4 1.65 22,000
----------- ------- --- ---- ------- --- ----- ------- ---- ---- --------
Total 8.4 2.01 541,000 2.1 2.51 171,000 10.5 2.11 712,000
----------- ------- --- ---- ------- --- ----- ------- ---- ---- --------
Dave Reeves commented, "For Calidus to increase the resource
base by 74% within 6 months of listing on the ASX, as a result of
targeted drilling underpins the unique attributes of the Warrawoona
Project, where outcropping gold mineralisation allows rapid and
cost-effective ounces to be added to this rapidly expanding
project. Calidus intends to maintain this momentum in the New Year
with extensional drilling programmes planned, both down dip and
along strike. In addition, Calidus plans to convert some of the
large number of satellite targets to resource status during 2018.
The planning for this is well supported by Calidus' current cash
position that allows a continuation of the aggressive work
programmes they have pursued to date.
With the definition of over 500,000 ozs in the indicated
category, the trigger for the conversion of Performance A Shares to
ordinary shares in Calidus has now been reached. This will result
in Keras holding a direct interest of 458,375,000 shares in
Calidus. These shares are held in escrow until 22 June 2019, at
which time the present intention of Keras is to distribute them to
its shareholders. We believe Calidus will continue to expand the
resource at the Warrawoona Project. In addition, Calidus has
publicly stated that they plan to commence a PFS on the project
before the end of 2018, subject to next year's drilling results.
The achievement of the final hurdle of the completion of a PFS
study will result in the conversion of our holding of Performance B
Shares and will take Keras' total holding in Calidus to 723,750,000
ordinary shares."
To view a full version of the Calidus announcement, which
includes figures and maps, please click here:
https://www.investi.com.au/api/announcements/cai/f09f8a1f-545.pdf
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/Jamie Spotswood Northland Capital Partners Limited +44 (0) 20 3861 6625
Broker
Damon Heath/Erik Woolgar Shard Capital Partners LLP +44 (0) 20 7186 9952
Tom Curran/Ben Tadd SVS Securities Plc +44 (0) 203 700 0093
This information is provided by RNS
The company news service from the London Stock Exchange
END
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