Keras confirms start of commercial production at Diamond Creek

Keras Resources announced on Friday that commercial production had now started at the Diamond Creek high-grade organic phosphate mine in the US state of Utah, owned by its 51% subsidiary Falcon Isle Holdings.

The AIM-traded firm said commissioning was complete, and the milling plant was now at steady-state operational capacity.

Stockpiled material from the 2020 mining season was now being crushed and processed, producing a range of premium products to be sold directly into the United States organic fertiliser market, with marketing discussions being held with a number of existing clients and a “wide range” of new interested parties.

Work was also continuing at the mine site to ensure everything was production ready to start the 2021 mining season later in July, the board said.

“Having our milling plant up and running within a year of acquiring our initial interest in Diamond Creek is another key achievement for the company,” said chief executive officer Russell Lamming.

“Over the past 11 months we have secured a controlling stake in, and developed, a high-grade phosphate mine, completed our first mining season and installed our own beneficiation capacity on site.”

Lamming said the company was “delighted” that the plant was now fully operational, with a range of products being bagged up directly for customers.

“A key component of our organic fertilizer business model in the US is the construction of a granulating plant adjacent to the now operational milling plant which adds a valuable stream to our product mix, this is expected to be commissioned in the last quarter of 2021.

“We look forward to this year's mining starting in the coming weeks and providing further updates in due course.”

At 0940 BST, shares in Keras Resources were up 6.92% at 0.99p.