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LONDON (Alliance News) - Mineral resource developer Keras Resources PLC on Thursday noted the high-grade drill results found at the Warrawoona gold project in western Australia.
Shares in Keras were down 7.3% at 0.32 pence on Thursday.
Keras holds approximately 32% of the current issued shares in gold explorer Calidus Resources Ltd, which owns the Warrawoona project.
At present Keras holds 458 million ordinary Calidus shares but, upon completion of a pre-feasibility study, a Keras's 265 million performance shares in Calidus will be converted into ordinary shares.
Keras said the initial high-grade drilling results from underneath the Klondyke mineral resource at Warrawoona "demonstrate high-grade extensions" to the currently defined resource of 654,000 ounces at Klondyke, which has a grade of 2.1 games of gold per tone of ore.
Assays have been received from 14 of the 22 holes in the diamond drilling programme testing, which took place under the Klondyke mineral resource at Warrawoona.
These results include 12.7 metres at 3.3 grams per ton of gold from 253.3 metres at hole 18KLDD022 and 7.0 metres at 4.3 grams per ton of gold Au from 223.9m at hole 18KLDD015.
"All indications from this drill programme, and previous programmes conducted at the wider Warrawoona project over the past two years, point to this asset hosting a large and high-grade gold mineralised system," said Keras Chief Executive Russell Lamming.
Kevas expects the publication of a resource upgrade for Warrawoona in the first 2019 quarter.
