LONDON (Alliance News) - Keras Resources PLC said on Wednesday that Calidus Resources Ltd, in which Keras holds a 32% stake, has recorded an increase in the Warrawoona gold project's mineral resource in Western Australia.
The total JORC compliant mineral resource for Warrawoona now stands at 21.2 million tonnes, at 1.83 grams per tonne of gold for 1.3 million ounces.
This reflects a 75% increase in total contained ounces from the resource previously announced in December 2017.
Included in the mineral resource is a high-grade component, estimated to contain 14.6 million tonnes at 2.37 grams per tonne of gold for 1.1 million ounces.
Meanwhile, work on the pre-feasibility study is ongoing and is due for completion in the third quarter of 2019. Drilling is planned for new prospects to grow the resource further.
"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," said Chief Executive Officer Russell Lamming.
Shares in Keras Resources were down 6.7% at 0.35 pence on Wednesday.