Keras Resources – Update

16 August 2017

Shard Capital note today’s announcement from Keras Resources Plc in respect of Calidus Resourves Ltd (CAI:ASX). Keras has controlling interest in Calidus Resources Ltd (Calidus), an ASX company established to accelerate development of the Warrawoona Gold Project, which is located in the Pilbara region of Western Australia. Today’s announcement shows that  Calidus Resources continues to intersect ore grade mineralisation in every drill hole since commencing drilling in ‘The Gap Zone’ of the Klondyke shear in June 2017. High grade highlights from today’s announcement include:

  • 9m @ 4.56g/t Au (incl 1m @ 30.67g/t) from 3m in hole 17KLRC031
  • 6m @ 63.31g/t Au (incl 2m @ 182.57g/t) from 49m in hole 17KLRC032
  • 12m @ 3.73g/t Au (incl 1m @ 26.98g/t) from 40m in hole 17KLRC038
  • 5m @ 4.81g/t Au (incl 1m @21.61g/t) from 85m in hole 17KLRC039

The latest set of drill results has now essentially closed ‘The Gap’ of 700m between the previous JORC resources of the Klondyke shear, demonstrating not only that the resource should increase significantly, but that repeat, higher grade intersections within 50m and within 100m from surface will likely have a meaningful, positive impact on mine economics in the critical first few years of production.

Calidus have already opted to increase the size of the current drill programme by adding a further 2,600m of drilling (a 26% increase) which is primarily focussed on the existing Klondyke Resource and ‘Gap Zone’ and includes 1,100m of diamond core for structural work and metallurgical test work. It’s expected that this will increase the resource certainty, pushing more ounces in to the indicated category.

Calidus have now reported just 4,228m of 11,000m initially planned for Klondyke which means we are expecting continual announcements over the next few months as >6,500m of drilling in Klondyke, as well as 1,600m in the high grade Copenhagen, Coronation and Fieldings Gully deposits, are reported to the market.

Keras currently hold a 31% interest in Calidus. As previously announced, once an Indicated Resource of at least 500,000oz is declared, Keras will receive 241.25m Ordinary Shares in Calidus* , which will increase Keras’ holding to 50% of Calidus’ total issued share capital based on the number of shares currently in issue.

*Keras will pay a fee of 3.5% of the 525m shares as previously announced by Keras on 28th April 2017

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