Keras targets 30 000 oz/y output from mid-2017

JOHANNESBURG (miningweekly.com) – Aim-listed Keras Resources is targeting the production of 30 000 oz/y of gold from mid-2017.

The company, which has gold mining operations in Australia, officially became a cash-generative mining company in March.

Chairperson Brian Moritz on Tuesday said the 16% increase in the Australian dollar gold price experienced in the first quarter of this year represented the strongest quarterly gold price performance in 30 years, adding that margins for gold mining operations had strengthened significantly. 

The company has four tribute agreements, which allows it to mine for gold on other parties’ mine leases.

In November 2015, Keras acquired its first tribute agreement, the Grants Patch gold tribute project near Kalgoorlie.

Another tribute agreement with Paddington Gold, a subsidiary of Norton Gold Fields, which was secured in the first quarter of this year, provided an entitlement to mine some of Paddington’s gold deposits for processing at the Paddington mill, located 25 km away, in return for a 22% royalty, as well as a payment to cover mining and processing costs.

First gold ore haulage was delivered to the Paddington Mill in April and the first cash payment received in May.

Keras has secured two further tribute agreements, taking its overall tribute gold inventory above 500 000 oz.
       
Meanwhile, the company’s Nayega manganese project, in Togo, remained an important asset within its portfolio, but development would only proceed once a mining licence was awarded.

Keras held an 85% interest in the Nayega project, which covered a 92 390 ha area in northern Togo.