StockMarketWire.com - Keras Resources has exercised the option agreement it was granted in March over the Lindsay's project in the Western Australian goldfields by KalNorth Gold Mines Limited. Under the terms of the agreement, Keras was granted an exclusive and irrevocable option to mine the Lindsay's project in consideration for a share of the net revenues derived from the project.

Keras and KalNorth will now finalise a formal agreement, which will contain full representations and warranties in respect of the Lindsay's project, prior to the commencement of mining operations. The Lindsay's project incorporates total open pit and underground resources of 215,000 ounces Au, of which 77% falls in the Indicated Resource category. This includes the high-grade Parrot Feathers deposit which comprises a resource of 401,000t at 4.2g/t Au for 54,000 ounces Au.

Keras, at its cost, is currently undertaking an internal assessment to look at decreasing dilution by developing on reef and upgrading the ore through the use of optical sorters.

The mining will initially start on the remaining open pit resources with a fully ramped up underground production rate expected to be between 10,000 and 20,000 ounces per annum. All the mining permits are in place for the current operation.




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