TIDMKRS
RNS Number : 8813X
Keras Resources PLC
03 September 2020
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
3 September 2020
Keras Resources plc ('Keras' or the 'Company')
First Commercial Dispatch of High-Grade Phosphate Ore from
Diamond Creek
Keras Resources plc, the AIM listed mineral resource company, is
pleased to announce an update on progress at the Diamond Creek
high-grade direct shipping ore ('DSO'), organic phosphate mine in
Utah, USA ('Diamond Creek') and the Nayéga Manganese mine in Togo,
West Africa ('Nayéga'). Keras has the right to earn into a
controlling 51% interest in Diamond Creek following its acquisition
of Falcon Isle Holdings LLC ('Falcon') announced on 30 July 2020
and has an 85% interest in Société Générale de Mines SA which holds
the Nayéga exploration permit.
Overview
Diamond Creek
-- The US Department of Labor's Mine Safety and Health
Administration ('MSHA') completed a two-day inspection and audit on
1 September on site with no safety concerns or violations
issued
-- First commercial production of -10 mesh (-2mm) organic
phosphate product dispatched to customer
-- Access roads fully upgraded and lay-down area for run-of-mine
('ROM') ore to be complete by 7 September
-- Year 1 ROM production to increase by 50% to 7,500 short tons
to ensure that product is available through the winter
-- New crushing, milling & screening plant, to be owned and
operated by Falcon has been ordered and fabrication has now
commenced
-- Tranche 2a of USD600,000 loaned to Falcon increasing the
Company's current interest in Falcon to 30% (as per announcement on
30 July 2020)
Nayega
-- Management trip to Togo planned for 10 September
-- Exploration at Ogaro prospect will recommence on 7 September
Keras Resources CEO, Russell Lamming said: "We are now a month
into the Diamond Creek acquisition and during that month, in
addition to the significant progress on infrastructure, we have
mined, toll-processed and dispatched our first high-grade DSO
organic phosphate. The successful and swift dispatch of this first
commercial material is testament to the quality of Diamond Creek in
terms of accessibility, simple processing technology and the
quality of the on-site management team.
"With regards Nay é ga, we are very encouraged by the reopening
of Togo to international business post the COVID-19 lock-down
period. We plan to recommence exploration activities within the
next week at the Ogaro prospect, which has previously returned
highly encouraging results and we also look forward to a positive
and constructive trip to Lomé commencing on 10 September. I will be
leading the Keras management team, which will meet key government
officials to agree a way forward to production at Nay é ga.
"I look forward to updating the market with developments
relating to both our Diamond Creek Mine and Nay é ga Manganese
Project in due course."
Further Information
Diamond Creek Phosphate Project
Diamond Creek is a fully permitted, high grade direct shipping
ore ('DSO'), low capex organic phosphate mine which achieved first
commercial production in late July 2020. The first beneficiated -10
mesh organic product has now been dispatched and forms part of a
770-ton order. Based on recent interest in Diamond Creek's product
the Company has decided to increase Year 1 of the phased production
ramp up from 5,000 tons to 7,500 tons while maintaining the target
of 48,000 tons in Year 5 of commercial production. The increase in
planned production does not change the terms of the agreement
announced on 30 July 2020.
Current beneficiation is being undertaken through a
toll-treating agreement. A new plant, to be owned and operated by
Falcon, which has the capacity to process the 5-year 48,000-ton
production target, has been ordered and fabrication has commenced.
This is expected to be commissioned in the Q4 2020 and will
increase both the available capacity and flexibility to produce
different sized beneficiated material.
The access roads to both the lay-down area for ROM ore and the
upper road to the open-pit have now been upgraded to ensure that
mining activities and trucking to the Spanish Fork processing
facility can be conducted in a safe and secure environment.
Nay é ga Manganese Project
The Company has recommenced activities at Nayega with
exploration at the Ogaro prospect to continue from 7 September
2020. Ogaro is located 5km east-southeast of the main Nayega
deposit and 4km south of the previously explored T27 deposit. As
announced on 18 September 2018 Pits excavated to test the core area
of mineralisation have returned positive results, with best
intercepts including 1.76m @ 18.6% Mn from 0m, 2.05m @ 15.8% Mn
from 0m and 2.00m @ 16.2% Mn from 0m.
In addition, management will be travelling to Lomé, the capital
of the Republic of Togo, on 10 September to meet with government
officials and local authorities. It is expected that during these
meetings, a roadmap to production will be agreed which will ensure
that the necessary procedures and permissions are in place to
create a safe work environment at Nay é ga when the Exploitation
Permit is granted.
**ENDS**
For further information please visit www.kerasplc.com , follow
us on Twitter @kerasplc or contact the following:
Russell Lamming Keras Resources plc info@kerasplc.com
Nominated Adviser & Joint SP Angel Corporate Finance
Broker LLP
Ewan Leggat / Charlie Bouverat +44 (0) 20 3470 0470
Joint Broker Shard Capital Partners
Damon Heath / Erik Woolgar LLP +44 (0) 207 186 9900
Financial PR
Susie Geliher / Cosima
Akerman St Brides Partners Ltd +44 (0) 20 7236 1177
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END
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