16th Jan 2017 08:53
LONDON (Alliance News) - Keras Resources PLC on Monday said it hopes to expand its footprint in the Warrawoona gold district in Western Australia after submitting two applications for new tenements covering a combined area of 170 kilometres squared.
The miner already has its flagship Klondyke gold project in the region and is aiming to consolidate its presence in the region to build a large asset base for future development centred around Klondyke.
Warrawoona lies in the East Pilbara gold belt of the Pilbara goldfield.
"Having successfully acquired and consolidated Klondyke in September 2016, we have embarked on a strategy of strengthening our presence in this gold-rich region, with the application for these tenements marking the first step in a further consolidation of the greater region. We continue to investigate other low-cost opportunities to increase our tenure in the area with the defined aim of providing a significant resource base to underpin the development of a substantial gold mine," said Managing Director Dave Reeves.
The area covered by the new tenements has hosted previous artisanal mining operations and contain a multitude of historic gold occurrences. No public objection has been made against the applications and the miner is now awaiting heritage clearance.
As it looks to build a base around Klondyke, Keras said the flagship project has also has its tenements extended until 2035. Klondyke already has a resource estimate of 5.6 million tonnes of ore graded at 2.08 grammes of gold per tonne, containing about 374,000 ounces of gold.
Keras said it will update the market when the tenements are granted and then embark on maiden gold exploration work shortly thereafter. The pegging of this ground is Keras' first step in its strategy to consolidate the region and provide a large asset base for future development centred on Klondyke.
Keras shares were trading 1.1% higher on Monday at 0.48 pence per share.
By Joshua Warner; [email protected]; @JoshAlliance
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