(Sharecast News) - Mineral resource company Keras Resources updated the market on its progress at the Diamond Creek high-grade direct shipping ore organic phosphate mine in Utah on Friday, which is owned by its 51% subsidiary Falcon Isle.
The AIM-traded firm said the processing plant, which was fabricated and shipped from Shanghai in the fourth quarter of 2020, was now on site in Utah, with construction underway.
It said the new owner-operated plant had design capacity to process the targeted 48,000 tons-per-year production rate in 2024, and would increase both the installed capacity and flexibility to beneficiate a variety of organic phosphate products, and would also see a significant reduction in operating costs as the firm moved away from its current toll agreements.
Commissioning was on schedule, the board confirmed, with the plant expected to be operational by the end of the first quarter.
"Our expansion at Diamond Creek continues to progress as planned and the commissioning of the new crushing, milling and bagging facility, which will be capable of supporting our peak production rate of 48,000 tons per year, is a key component underpinning this strategy," said chief executive officer Russell Lamming.
"We have a long life-of mine at Diamond Creek, with the opencast resources alone representing in excess of 60 years at the peak production rate, highlighting the long-term sustainable cash flow we anticipate being generated from this mine.
"We look forward to delivering further news regarding the commissioning of the processing plant and our 2021 production schedule in due course."
At 1225 GMT, shares in Keras Resources were up 4.35% atr 0.12p.
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