TIDMKRS
RNS Number : 8509B
Keras Resources PLC
13 October 2020
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
13 October 2020
Keras Resources plc ('Keras' or the 'Company')
Project & Corporate Update
Keras Resources plc, the AIM listed mineral resource company, is
pleased to announce an update on progress at the Diamond Creek
high-grade direct shipping ore ('DSO'), organic phosphate mine in
Utah, USA ('Diamond Creek') and the Nayéga Manganese mine in Togo,
West Africa ('Nayéga').
OVERVIEW
Diamond Creek
-- Completed 2020 mining campaign - 7,620 run-of-mine ('ROM')
tons extracted including the bulk sample; this is over 50% more
than initially planned for the first year of production
-- Sold 1,012 tons of product at an average price of US$260 per ton
-- Focused on bringing new owner-operated plant into production
with the capacity to process the five-year 48,000-ton production
target
o Fabrication of the plant is on time and expected to be shipped
from Shanghai, China in November 2020
o Agreed new plant location to increase logistics flexibility
and provide better access to the US west-coast - plant
commissioning expected Q1 2021
Nay é ga
-- Successful management trip to Togo in September 2020 with
another planned in early November 2020 - positive meetings with
high level government officials and various service providers
-- Underpinned Nayéga's production-ready status following site
visit to dry-test 6,500 tonne per month bulk sample processing
plant and associated water reticulation system
-- Completed 25 of the planned 50 pits of the Ogaro pitting
programme; on track to complete pitting phase by the end of October
2020 with channel samples to be submitted thereafter to determine
grade and particle size distribution per geological horizon
Corporate
-- Increased interest in Falcon Isle Holdings LLC ('Falcon
Isle'), the 100% owner of the Diamond Creek, to 40% having loaned
Tranches 2a and 2b totalling USD1,200,000 to Falcon Isle
Keras Resources CEO, Russell Lamming said: "We are very
encouraged to have completed the 2020 mining campaign at Diamond
Creek, extracting a total of 7,620 tons, which is over 50% more
than initially planned for the first year of production.
Furthermore, we have also achieved 20% of our Year 1 sales forecast
in only two months, having sold a total of 1,012 tons at an average
price of US$260/t in August and September, highlighting the
significant demand for our high quality product.
"Our attention now turns to bringing our owner operated plant
into production so that we can increase both our processing
flexibility and our product range and subsequently widen our
marketing universe.
Excitingly, we secured a new site 150kms south-west of Spanish
Fork, which facilitates increased flexibility and better access to
the US west coast without increasing our logistics cost from the
mine to the new processing facility. Although this has pushed the
commissioning into early 2021, the long-term benefits far outweigh
this slight delay.
"With regards to Nayéga, Graham Stacey and I spent three weeks
in September meeting key government officials, government advisors
and various contractors and service providers to ensure that as we
progress towards the conclusion of the project permitting process
we are production ready. The Nayéga site visit undertaken during
the trip, where both the processing plant and ancillary services
were successfully dry-tested, is testament to the quality and drive
of our in-country team, which has achieved this despite the severe
restrictions necessitated by the COVID-19 pandemic.
"Our recent trip to Togo was extremely valuable from both an
operational and corporate perspective and we look forward to
advancing the appropriate discussions with the new Togolese
Government following the recent appointment of Victoire Tomegah
Dogbé as the new Prime Minister and Mila Aziable as the new
Minister of Energy and Mines. We look forward to updating
shareholders on both our Diamond Creek Mine and Nayéga Manganese
Project in due course."
FURTHER INFORMATION
Diamond Creek Phosphate Project
Diamond Creek is a fully permitted, high grade DSO, low capex
organic phosphate mine. The mine achieved first commercial
production in late July 2020 and the first beneficiated -10 mesh
organic product, part of a 770-ton order, was dispatched in early
September.
The 2020 mining campaign has now been completed with a total of
7,620 ROM tons now extracted from the Diamond Creek mine. As of 09
October, 2,487 tons of ROM have been toll-processed with total
sales to date of 1,012 tons averaging $260/t. This represents 20%
of the forecast sales for Year 1, which the Board believe to be
highly encouraging based on the first two months of production.
As previously reported, the Company decided to increase Year 1
of the phased ROM production by 50% from 5,000 tons to 7,500 tons
to ensure sufficient material over the winter while maintaining the
Year 5 target of 48,000 tons of commercial production. The increase
in planned production does not change the terms of the agreement
announced on 30 July 2020.
Current beneficiation is being undertaken through a
toll-treating agreement at a plant located in Fillmore, Utah,
approximately 150kms south west of Spanish Fork. A new plant, to be
owned and operated by Falcon Isle, which has the capacity to
process the five-year 48,000-ton production target, is anticipated
to be shipped from Shanghai in November 2020. This is expected to
be commissioned in Q1 2021 and will increase both the available
capacity and flexibility to produce different sized beneficiated
material.
Nayéga Manganese Project
The Company continues to make progress at the Nayéga manganese
project in northern Togo, West Africa. During September 2020,
management had a successful trip to Togo where they met high level
government officials and various service providers; another trip is
planned in early November 2020. Additionally, they visited the
Nayéga site to dry-test the 6,500 tonne per month bulk sample
processing plant and associated water reticulation system, which
underpinned the project's production-ready status.
Additionally, the Company recommenced activities on 7 September
2020 at Nayéga, focussing on exploration at the Ogaro prospect,
which is located 5km east-southeast of the main Nayéga deposit and
4km south of the previously explored T27 deposit. 25 of the planned
50 pits are complete with the remaining 25 pits on track to be
completed by the end of October 2020; channel samples will be
submitted thereafter to Intertek Laboratory in Accra, Ghana, to
determine grade and particle size distribution per geological
horizon. Previous test-pitting in the area to test the core area of
mineralisation have returned positive results, with best intercepts
including 1.76m @ 18.6% Mn from 0m, 2.05m @ 15.8% Mn from 0m and
2.00m @ 16.2% Mn from 0m.
Corporate
Further to the announcement dated 30 July 2020, the Company has
loaned Tranches 2a and 2b totalling USD1,200,000 to Falcon Isle
Holdings LLC ('Falcon Isle'), the 100% owner of Diamond Creek,
increasing the Company's current interest in Falcon Isle to
40%.
**ENDS**
For further information please visit www.kerasplc.com , follow
us on Twitter @kerasplc or contact the following:
Russell Lamming Keras Resources plc info@kerasplc.com
Nominated Adviser &
Joint Broker
Ewan Leggat / Charlie SP Angel Corporate
Bouverat Finance LLP
Joint Broker Shard Capital Partners +44 (0) 20 3470 0470
Damon Heath / Erik Woolgar LLP +44 (0) 20 7186 9900
Financial PR
Susie Geliher / Cosima St Brides Partners
Akerman Ltd +44 (0) 20 7236 1177
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