11-10-18 Keras Investor Event12 Oct 2018 12:02
Hi all, sorry for the delay in reporting back from last night, I had to get my top up in before I updated you all and there was a flurry of buys, as in my opinion, last night highlighted the solid well planned business model both KRS and CAI are undertaking, with no debt, cash in the bank, no planned capital raises in the near future and revenue from togo a huge possibility only months away.
Firstly I have to comment on Russell Lamming himself, a calm, understated confident guy, with vast knowledge of the development of small/medium scale mining operations, who was more than willing to explain in pretty fine detail everything that KRS are undertaking and their future plans. I personally learnt a great deal about the scrubbing process of the manganese the geology of the rock along with business strategy for operating a mine in Africa, as well as more about the kind of mine Klondyke will be and the implications of the results coming out of CAI on a regular basis. In this report I will focus on KRS though as Russell was clear to point out that KRS is now a stand alone business.
So regarding Togo. Russell explained how this bulk sample we are undertaking isn't just a bulk sample. 10,000t is a sizeable tonnage and is more like a trial mining operation. Secondly the infrastructure we are putting in place the 6km of water pipes (with 6 off takes for local villages and farms along the way}, the water tank which would give us 25 days water supply in case of the bore hole running dry, the cleared roads and of course the scrubbing plant, (which is a very simple way to turn the clay riddled with manganese oxide pellets if you will, from 14% purity to 35% purity just by washing the clay away, an air powered jig may be brought in a later stage however), will enable us to operate a 6000t per month 34% mining operation to hopefully coommence at the end of the bulk sample mining operation.
Through installing the infrastructure and showing the local community and authorities, the clean, responsible and economically beneficial way we will operate this mine for the bulk sample, the desired response would be that the locals and local business, would request we be allowed to remain and operate the mine. To me this makes a huge amount of sense, and nothing is guaranteed, as this is Africa! However instead of making multiple visits to the mining authorities repeating the same approach again and again to no avail, this is a much more savvy way of moving forward. Add to this the fact that the $1.5m from CMTP of which we have only used $600k comes with NO strings attached, and the owner of this business has moved his family onto the site, (see buildings in aerial picture of the mine), demonstrates the confidence of the movement towards a permit and the motivation to get one passed from other parties, apart from KRS.
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