LONDON (Alliance News) - Keras Resources PLC said Wednesday reverse circulation drilling at its Prince of Wales project in the Western Australian goldfields has returned economic, high-grade results, opening up areas previously "not contemplated for mining".
The Australian gold miner said the results, which included 3 metres at 14.64 grams per tonnes of gold from 66 metres, and 3 metres at 7.25 grams per tonne of gold from 60 metres, underpin its plans to deliver a high-grade product from to Norton Gold Field's Paddington processing mill in the next six months.
Keras will be delivering the product as part of its pre-payment deal with Norton, under which ore from Keras will be stockpiled at the Paddington site and the price paid for all recovered ounces will be fixed to the close of business on the first day of gold pour following full delivery of all ore to Paddington.
Keras said the mineralisation seen at the Prince of Wales site was delineated via drilling provides near surface, quick access high-grade feed for processing.
The company added that the drilling opens up around 20,000 tonnes of high grade ore from the previously developed Concols decline, and noted that it will now commence a resource development programme utilising diamond drilling.
"These results demonstrate the high-grade nature of mineralisation at Prince of Wales, open up areas of the asset previously not contemplated for mining and reinforce our view on the value of the project. The ability to access high-grade ore during the development phase of mining will greatly enhance our cash flow position," said Managing Director Dave Rees.
"Work has now commenced on re-accessing the Consols decline with the clean-up of the pit and re-establishment of the portal area. It is envisaged that we will be able to access this ore in the fourth quarter of 2016 which will provide high-margin material for the company to add to the cash flow already being generated," Rees added.
Shares in Keras were up 2.2% at 0.920 pence on Wednesday.
By Hannah Boland; hannahboland@alliancenews.com; @Hannaheboland
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Keras Res (KRS)