Keras Resources subsidiary enters East Pilbara option agreement

Shares in Keras Resources rose more than 15% after subsidiary Keras (Gold) Australia Pty Ltd entered into an option agreement to acquire one exploration licence and two exploration licence applications in the East Pilbara district of Western Australia.

It said the new licences were adjacent to Keras Australia's Warrawoona Gold Project, which had a current Inferred Mineral Resource Inventory of 5.8Mt @ 2.2g/t Au for 410,000 ounces.

Keras' managing director, Dave Reeves, said the option over these licences was another key step in consolidating exploration ground that had significant potential to increase Keras Australia's gold resource inventory.

"The optioned licences cover highly prospective ground and a substantial number of historic gold workings," said Reeves.

"As well as covering extensions to the Klondyke shear (which hosts a resource totalling 410,000 ounces of gold), the licences cover most of the historic, high grade Marble Bar Goldfield."

Reeves also said that with additional tenement holdings in the area, these additional licences would increase the potential gold inventory of Warrawoona to improve the likelihood of a stand-alone operation being developed.

At 10:42 BST, shares in AIM-listed Keras were up 15.38% to 0.38p each.