8th Apr 2016 08:37
LONDON (Alliance News) - Keras Resources PLC on Friday said it has hauled its first tranche of ore from the Anomaly 22 deposit within the Grants Patch Gold Tribute lease area in western Australia to the Paddington Mill to be processed.
The haul contained 7,548 tonnes of ore graded at 1.53 grammes of gold per tonne, containing around 372 ounces of gold. The ore will be processed by Paddington Gold Pty Ltd under a previously signed agreement between the owner of Paddington Gold, Norton Goldfields, and Keras.
"The delivery of our first gold ore parcel to Paddington sets the clock ticking for our first payment under the Norton tribute [agreement]," said Managing Director Dave Reeves.
"We can now say that we are officially a gold miner and look forward to increasing production over the coming months towards our goal of producing 20,000 to 30,000 ounces of gold over the next 12 months," he added.
Keras said the first parcel was delivered to the mill ahead of schedule.
Under the terms of the agreement, Keras must deliver minimum tranches of ore of 3,000 tonnes and Paddington must pay Keras for the gold within that ore within 42 days of receiving it, but can also deduct its own milling, hauling and 22% royalty fee from that payment to Keras.
Keras shares were down 4.2% to 1.44 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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