TIDMKRS
RNS Number : 5991T
Keras Resources PLC
09 January 2017
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
9 January 2017
Keras Resources plc ('Keras' or 'the Company')
Further High Grade Gold within Broad Mineralised Zones at
Klondyke
Keras Resources plc, the Australian focused gold mining company,
is pleased to announce that drilling has confirmed historic
intercepts at its 100% owned, flagship Klondyke Gold Project
('Klondyke' or the 'Project') in the East Pilbara District of
Western Australia ('WA'). This follows the receipt of assay results
for the remaining six holes of the reverse circulation ('RC')
drilling programme completed in November 2016, which returned
high-grade gold intersections.
Highlights
-- Wide, near surface gold intercepts including multiple higher
grade zones returned in the final six holes of the Klondyke drill
programme, underlining the potential for bulk open pit
extraction
-- High-grade gold intervals at depth suggest suitability for
underground exploitation, as well as, initial open pit operations,
potentially extending the life of mine
-- Five holes were drilled within the defined JORC compliant
mineral resource estimate, of 5.6Mt at 2.08g/t gold ('Au') for
374,000oz, along the Klondyke trend, over a strike length of
approximately 1.4km
-- One hole was drilled in the area between the current
resources confirming grade continuity in this area
-- Intercepts include:
o Hole KKC003: 60m @ 1.00g/t from 0m to end of hole ('EOH')
incl. 2m @ 5.77g/t Au from 6m, 4m @ 1.94g/t Au from 15m, 16m @
1.97g/t Au from 35m
o Hole KKC004: 44m @ 1.08g/t Au from 0m incl.13m @ 2.28g/t Au
from 14m
o Hole KKC005: 38m @ 1.52g/t Au from 0m incl.28m @ 1.98g/t Au
from 0m
o Hole KKC006: 37m @ 1.60g/t Au from 50m incl. 21m @ 2.66g/t Au
from 62m
o Hole KKC007: 38m @ 1.92g/t Au from 0m, incl. 23m @ 2.68g/t Au
from 2m
o Hole KKC008: 90m @ 1.34g/t from 0m to EOH incl. 6m @ 3.32g/t
Au from 11m, 6m @ 4.45g/t Au from 24m, 7m @ 1.87g/t Au from 57m, 5m
@ 3.42g/t Au from 69m, 4m @ 5.50g/t Au from 86m to EOH
-- Results bolster previously reported gold intercepts in holes
drilled under the satellite Copenhagen pit:
o Hole KKC001: 18m @ 6.3g/t Au from 33m (incl. 6m @ 9.3g/t Au
from 34m and 3m @ 16.0g/t Au from 45m)
o Hole KKC002: 9m @ 6.9g/t Au from 49m (incl. 6m @ 9.5g/t Au
from 49m)
-- Significant further upside potential:
o High-grade gold (up to 14.1g/t over 1m) intersected near the
bottom of hole KKC008, beyond the final depth of the hole being
twinned, underscores potential for the discovery of additional gold
mineralisation
o Drilling tested only 1.4km of the 7.5km trend and that
historic drilling did not test the full trend
o Recent chip sampling recorded 10g/t Au results at both the
extreme eastern and western ends of the Klondyke tenement
package
o Old workings present along the 7.5km trend
-- Samples from significant intercepts are currently being
analysed by screen fire assay to provide more accurate grades and
analyse more accurately any coarse gold mineralisation
intercepted
-- Following receipt of screen fire assay results, the 2017
drill programme will be finalised to target expansion of the
current resource estimate
Keras Managing Director Dave Reeves said,
"Our maiden drill programme at the Klondyke Gold Project has
confirmed that gold mineralisation of substantial thickness
commences at surface along parts of the Klondyke trend. It is
important to note that our drilling tested only 1.4km of the 7.5km
trend and that historic drilling did not test the full trend. Rock
samples collected from the Klondyke horizon during the recent
mapping programme returned anomalous levels of gold along parts of
the trend not tested by historic drilling, defining targets for
further work. In addition to the wide, high-grade gold intercepts
returned in two holes drilled under the small Copenhagen pit, the
results of drilling and sampling along the Klondyke trend emphasise
the considerable potential of our flagship project.
"Drill samples are currently being analysed by screen fire assay
to provide more accurate gold grades. Once we have these results,
planning for the 2017 drill programme, which aims to expand the
current resource estimate of 5.6Mt at 2.08g/t Au for 374,000oz,
will be finalised. I look forward to reporting the results of
screen fire analysis in due course and providing updates on the
next phase of exploration at Klondyke."
For a version of the announcement which includes figures showing
drill plans and sections, please click here
http://www.rns-pdf.londonstockexchange.com/rns/5991T_-2017-1-8.pdf
Further Details
Assay results from the final six holes (of an eight hole
programme) have been received. The holes were drilled within or
adjacent to the defined compliant resource along the Klondyke trend
to confirm historic gold intercepts. Width and grade of gold
intercepts indicate mineralisation could be amenable to open pit
exploitation with grades at depth suggesting potential for
underground mining. Cross sections for selected drillholes have
been compiled and are presented as Figures 2 and 3.
Extensional and infill drilling is planned for next year to
target the upgrade and expansion of the defined resource.
A Reverse Circulation drilling programme was implemented at
Klondyke in November 2016. Two holes (for 140m) were drilled at
Copenhagen, with an additional six holes (for 402m) drilled at
points along the Klondyke trend. Hole details are listed in Table
1.
Table 1: Drill hole details
Depth
HoleID Prospect Tenement East North RL (m) Dip Azimuth
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC001 Copenhagen M45/240 791817 7641411 241 60 -61 216.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC002 Copenhagen M45/240 791801 7641439 244 80 -60 206.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC003 King M45/669 800102 7637648 287 60 -60 31.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC004 King M45/669 799920 7637755 295 52 -75 31.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC005 King M45/669 800200 7637628 290 50 -60 31.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC006 King East M45/547 800421 7637575 298 90 -60 211.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC007 Kopcke M45/670 801175 7637141 306 60 -60 36.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
KKC008 Kopcke M45/670 801052 7637184 304 90 -75 31.5
-------- ------------ ---------- ------- -------- ---- ------ ---- --------
Sampling, sample preparation and analysis followed industry best
practice, incorporating a comprehensive suite of QA/QC samples -
blanks, analytical standards and field duplicates. Analytical
samples were collected from a cone splitter connected to the drill
rig's cyclone, with the remaining sample collected in green plastic
bags and preserved for future reference.
Samples were transported from Port Hedland to Perth using a
commercial contractor, and delivered to Nagrom for analysis. After
sorting and logging, samples were dried, crushed, split (if in
excess of 2kg) and pulverised. A 50g sub-sample was collected and
analysed for gold by fire assay with an ICPOES finish. Drill
intercepts are listed below in Table 2; intercepts have a minimum
grade of 1g/t, minimum width of 2m, maximum internal dilution
(<0.1g/t) of 2m.
Table 2: Drill hole intercepts
Width
HoleID From To (m) Au (g/t)
-------- ----- ---- ------ ---------
KKC001 33 51 18 6.3
-------- ----- ---- ------ ---------
incl. 34 40 6 9.3
-------- ----- ---- ------ ---------
and 45 48 3 16.0
-------- ----- ---- ------ ---------
KKC002 49 58 9 6.9
-------- ----- ---- ------ ---------
incl. 49 55 6 9.5
-------- ----- ---- ------ ---------
KKC002 69 72 3 1.1
-------- ----- ---- ------ ---------
KKC003 0 60 60 1.0
-------- ----- ---- ------ ---------
incl. 6 8 2 5.8
-------- ----- ---- ------ ---------
15 19 4 1.9
-------- ----- ---- ------ ---------
35 51 16 2.0
-------- ----- ---- ------ ---------
KKC004 0 44 36 1.1
-------- ----- ---- ------ ---------
incl. 14 27 13 2.3
-------- ----- ---- ------ ---------
KKC005 0 38 38 1.5
-------- ----- ---- ------ ---------
incl. 0 28 28 2.0
-------- ----- ---- ------ ---------
KKC006 50 87 37 1.6
-------- ----- ---- ------ ---------
incl. 62 83 21 2.7
-------- ----- ---- ------ ---------
KKC007 0 38 38 1.9
-------- ----- ---- ------ ---------
incl. 2 25 23 2.7
-------- ----- ---- ------ ---------
KKC007 29 39 10 1.1
-------- ----- ---- ------ ---------
KKC008 0 90 90 1.3
-------- ----- ---- ------ ---------
incl. 11 17 6 3.3
-------- ----- ---- ------ ---------
incl. 24 30 6 4.5
-------- ----- ---- ------ ---------
incl. 57 64 7 1.9
-------- ----- ---- ------ ---------
incl. 69 74 5 3.4
-------- ----- ---- ------ ---------
incl. 86 EOH 4 5.50
-------- ----- ---- ------ ---------
As coarse gold is present at Klondyke, selected samples are
currently being analysed by screen fire assay, a technique designed
to provide more accurate results than standard fire assay. The
screen fire assay procedure involves sieving part or all of the
milled sample through a screen cloth, firing the oversize fraction
(including the cloth) and conducting duplicate fire assays on the
undersize fraction. A weighted average of the oversize and
undersize fraction assays is calculated and reported alongside the
individual fraction results.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**ENDS**
For further information please visit www.kerasplc.com, follow us
on Twitter @kerasplc or contact the following:
Dave Reeves Keras Resources plc dave@kerasplc.com
Nominated Adviser
Gerry Beaney/David Hignell Northland Capital Partners Limited +44 (0) 20 3861 6625
Broker
Elliot Hance/Jonathon Belliss Beaufort Securities Limited +44 (0) 20 7382 8415
Financial PR
Susie Geliher/Charlotte Page St Brides Partners Limited +44 (0) 20 7236 1177
Notes
Keras Resources plc is an Australian gold development company.
Keras has a portfolio of owner-operated gold interests and joint
venture gold projects. The Company's strategy is focussed on
advancing its owner-operator gold interests towards production
whilst concurrently identifying and assessing low risk, high margin
joint venture operations to enable cash flows. The Company benefits
from an experienced management team, which has extensive gold
experience and is based in Perth, reducing execution risk.
Gold Projects
Klondyke Project Area - 100% owned gold development project in
Western Australia
-- Current resource of 5.6Mt at 2.08g/t gold ('Au') for
374,000oz confined to just 2km of the main 7.5km shear strike
-- Right to mine contiguous Haoma tenements covering 650
hectares with excellent discovery potential
-- Active growth strategy - continue to assess additional
opportunities in the project area to add contiguous lease areas to
the critical mass that has been consolidated
Tribute Gold Projects
Keras has a portfolio of tribute mining agreements in the
Kalgoorlie Goldfield, Australia.
Wider Portfolio
Keras is currently awaiting a mining permit for its Nayega
Manganese Project in Togo. Once received it will look to develop
the asset into a low-cost export mining operation.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLUWAVRBOAARAR
(END) Dow Jones Newswires
January 09, 2017 02:00 ET (07:00 GMT)