Keras expands gold resource in Western Australia

Keras Resources added to its gold resource on Tuesday, having entered into a profit share agreement with Kalgoorlie Mining Associates to mine the Wycheproof Gold Deposit in Western Australia.

The AIM-traded Australian gold development company described Wycheproof as a high-grade, shallow deposit located on an existing mining licence.

It had a resource of 75,600 tonnes at 2.87 grams per tonne, for a total of 6,974 ounces of gold.

Keras said mining was to be undertaken in the near-term alongside production from the nearby Grants Patch Gold Tribute, with the mining fleet to be used across both sites.

"This tribute agreement increases our future production profile and given that it is in close proximity to our existing Grants Patch gold tribute deposits, which will come into production targeting 20,000 to 30,000 ounces of gold per annum in Q2 2016, we will be able to leverage our existing fleet and infrastructure," said managing director Dave Reeves.

"The Wycheproof deposit, although small, exists on a granted mining lease and can be brought into production in a short space of time. This latest agreement demonstrates the high level of activity in the region and the availability of deposits to be mined using a tribute method," he added.

Keras described the deal as a low-cost acquisition with no dilution, on a 50-50 profit share basis.

It said it was also in discussion with further parties with respect to similar Australian gold tribute opportunities.