(Alliance News) - Keras Resources PLC said Tuesday drilling results published by its Sydney-listed investee Calidus Resources Ltd for the Warrawoona gold project highlight the "robustness" of the open pit at the Pilbara project.
Keras currently holds a 34% interest in gold explorer Calidus. Keras is in the process of demerging its interest in Calidus, which Keras said will release about GBP10 million of value to shareholders and "provide visibility on the potential value of both companies".
Keras said based on the mid-market closing price on the ASX, its Calidus shares were worth GBP11.0 million on September 25, more than Keras's entire GBP10.5 million market cap in London at that time. Keras intends to distribute all 723.8 million of its Calidus shares.
Turning to the reverse circulation drilling results, AIM-listed Keras said the highlights from the planned Klondyke open pit showed "more wide, shallow intercepts" at Warrawoona, located in Western Australia's Pilbara region.
The drilling highlights include 35 metres at 2.84 grammes per tonne gold, from surface in hole 19KLRC218, 23 metres at 2.55 grammes per tonne gold, from 15 metres in hole 19KLRC241, and 2.06 grammes per tonne gold from 1 metre at hole 19KLRC243.
Keras Chief Executive Russel Lamming said: "These latest results, which will be used to establish a measured resource, demonstrate that the mineralisation in the planned open pit at Klondyke is wide and continuous and outcrops at surface.
"This highlights the technical and economic strength of the planned open pit and is consistent with Calidus' strategy to de-risk the 1.3 million ounce resource at Warrawoona where a definitive feasibility study is underway."
Keras said Calidus will now target a greenfield area about 3 kilometres west of Klondyke, aimed at extending Warrawoona's mine life.
Shares in Keras Resources were 3.2% lower in London on Tuesday at 0.46 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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Keras Res (KRS)