Keras Res Share News (KRS)

(Sharecast News) - Mineral resource company Keras Resources announced on Monday that, as a "critical step" in the exploitation permit approval process, it has been granted permission to undertake a bulk sampling metallurgical testwork programme at the Nayega Manganese Project in northern Togo.The AIM-traded firm said that would include the processing of 10,000 tonnes of beneficiated manganese ore by a "major producer" of manganese-based alloys, for large scale metallurgical testwork to assess the suitability of the ore in their Mn smelting facilities. It said the testwork, which was estimated to cost $1.5m, would be fully funded by the end-user, including the capital equipment, operating and logistics costs and management fees.Initial funding had been made available with immediate effect to ensure that long-lead capital items and management costs were covered, the Keras board said.For the purpose of the exercise, the company said it was targeting a beneficiated +10mm -75mm Mn product from a simplified washing, scrubbing and screening operation.That would provide real-time data with respect to the operating costs and logistics of exporting beneficiated manganese to third party end-users.Keras said it remained committed to developing its manganese assets in Togo into a producing mine, with the opportunity to develop a low-capex, open pit operation, producing beneficiated lump and fines manganese ore operation."Over the past several months we have been engaged in constructive discussions with the Ministry of Mines and other regulatory bodies in Togo on how to progress the Nayega project into a profitable mine," said Keras Resources chief executive officer Russell Lamming."The approval for a large-scale bulk sample is a significant step forward in those discussions."In parallel with the in-country discussions, we have secured a funding agreement with a third-party end-user that potentially may share significant synergies with a West African manganese producer."Lamming said the company believed that was a "huge endorsement" for both the project and its team's ability to identify quality assets, with the board "looking forward" to working closely with the end-user through the metallurgical testwork process."We have completed the tender process with local mining contractors and logistics companies who have capacity to commence the operation immediately and will be awarding the contracts in late July."I look forward to keeping shareholders updated on a regular basis not just at Nayega, but also from Calidus as it looks to advance its targeted 1 million-ounce JORC gold resource at its Warrawoona Project in Western Australia."