Keras Resources lauds 75% resource increase at Warrawoona project

Keras Resources on Wednesday reported that Calidus Resources Ltd, in which it holds a 32% stake, recorded an increase in the Western Australian Warrawoona gold project's mineral resource.

The AIM traded company said that, following a 75% increase in total contained ounces from the resource announced in December 2017, the total JORC 2012 mineral resource for Warrawoona now stands at 21.2Mt at 1.83 g/t Au for 1.25m ounces.

Russell Lamming, chief executive of Keras, said: "Achieving an increase of more than 75% in resource ounces is a significant achievement and importantly, the current resource is now well in excess of the 1-million-ounce level that many consider as a natural threshold for a successful standalone mine. When considering that the resource remains open at both depth and along strike, it is clear that we are looking at a very significant and high-grade gold mineralised system at Warrawoona."

Work on a pre-feasibility study is ongoing and is due for completion in the third quarter of 2019, with drilling for new prospects planned in order to grow the resource further.

"The continued progress of Warrawoona towards production, coupled with the work Keras is undertaking independently at our Nayega Manganese Project in Togo, where trucked ore is now being stockpiled at the deep-water port of Lomé, demonstrates how far Keras has come in transitioning from a junior explorer to an emerging production company," said Lamming.

Keras Resources' shares were up 6.67% at 0.40p at 1241 GMT.