StockMarketWire.com - Keras Resources said operations commenced in March 2016 with first ore milled in April 2016.

First quarter provisional production from the small scale open pits at Anomaly 22 and Accord:

- 63,346 tonnes mined and toll processed at a provisional grade of 1.36 g/t Au for a total of 2,763 ounces Au

- Total operating cost per ounce (ex-Tribute) of A$1,407/oz and total operating cost (Tribute incl.) of A$1,736/oz with an average gold price received for the quarter of A$1,687/oz

- Lower than expected productivity in the small pits resulted in higher operating costs

- Re-evaluation of mining protocols and operating procedures, including increasing excavator and trucking capacity, optimising grade control drilling and re-negotiating contracts to significantly reduce costs and increase margins

- Mining was completed at these two deposits and the company is now mobilising the new mining fleet to start the next stage of development by mining at the higher grade Wycheproof project

- Wycheproof expected to benefit significantly from the optimisation procedures implemented as well as being a profit share rather than a royalty payment - positive cash flow anticipated

- Detailed plans and costing with contractors for higher margin and longer life undergrounds well advanced

- Underground Prince of Wales Bulk Sample approval received

At the end of the quarter, the company had a cash balance of £0.75 million.


At 9:00am: [LON:KRS] Keras Plc share price was -0.28p at 0.88p



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