Business
KalNorth Option Exercised
KalNorth Option Exercised.
About this update from Keras Resources Plc
[{"type":"text","content":"\n \nRNS Number : 6913X Keras Resources PLC 10 May 2016 \n\nKeras Resources plc / Index: AIM / Epic: KRS / Sector: Mining\n10 May 2016\nKeras Resources plc ('Keras' or 'the Company')\nKalNorth Option Exercised\n \nKeras Resources plc, the Australian gold mining company, is pleased to announce that it has exercised the Option Agreement it was granted in March 2016 over the Lindsay's Project ('Lindsay's') in the Western Australian Goldfields by KalNorth Gold Mines Limited ('KalNorth'). \n \nUnder the terms of the Option Agreement, Keras was granted an exclusive and irrevocable option to mine the Lindsay's Project in consideration for a share of the net revenues derived from the project. Keras and KalNorth will now finalise a formal agreement, which will contain full representations and warranties in respect of the Lindsay's Project, prior to the commencement of mining operations.\n \nThe Lindsay's Project incorporates total open pit and underground resources of 215,000 ounces Au, of which 77% falls in the Indicated Resource category. This includes the high-grade Parrot Feathers deposit which comprises a resource of 401,000t at 4.2g/t Au for 54,000 ounces Au. Keras, at its cost, is currently undertaking an internal assessment to look at decreasing dilution by developing on reef and upgrading the ore through the use of optical sorters. The mining will initially start on the remaining open pit resources with a fully ramped up underground production rate expected to be between 10,000 and 20,000 ounces per annum. All the mining permits are in place for the current operation. \n \nHighlights\n \n· Exercising the option increases the Company's tributable resources by 215,100 ounces Au at a grade of 1.7g/t Au\n· Identified three open pit resources comprising approximately 100,000 tonnes of ore at an average 2.46g/t for 7,900 ounces - further drilling is required on two of these pits before a final decision to mine them is made\n· Reverse Circulation ('RC') drill rig will be mobilised in May 2016 to begin grade control drilling at the first pit\n· Plan to commence a 10,000t bulk sample at the Lindsay's Underground Mine under a Programme of Works licence, concurrent wi...