- Australian gold mining company Keras Resources posts operating losses of £1.6m for the year to the end of September - up from £1.2m last time.

Keras had revenues of £1.9m (2015: nil). Cost of sales totalled £2.2m (2015: nil) and administrative and exploration expenses rose to £1.3m from £1.2m.

Chairman Brian Moritz said: "During the year under review the Company has changed its area of operation to become an Australian focused gold company.

"Having identified the significant potential of the Australian gold market, we have made substantial progress within a short space of time.

"We established a portfolio of tribute mining operations, which have served as a stepping stone to the transformational acquisition of Klondyke.

"With an established resource of 5.6Mt at 2.08g/t gold (Au) for 374,000oz, and further upside opportunity already identified, we believe Klondyke offers significant value uplift potential.

"Furthermore, at the same time as we acquired Klondyke the Company also reached an agreement with Haoma for a Right to Mine and Option to Purchase Agreement on tenements contiguous and near to Klondyke covering 650 hectares.

"We believe these tenements have excellent potential due to the high grade drill results that have been returned to date, including 3m @ 17.58g/t Au from 20m, 4m @ 59.48 g/t Au from 64m and 11m @ 7.23 g/t Au from 30m.

"Crucially, as we will be the operator of Klondyke and the Haoma tenements, with a 100% interest, we believe there are stronger operating margins available for us here compared to our tribute operations.

"It is therefore our intention that this will be our primary development focus.

"With this in mind, our strategy going forward is centred on advancing Klondyke towards production whilst concurrently identifying, assessing and developing low risk, high-margin mining operations, which are intended to provide cash flow to support the development of Klondyke.

"Despite not having been profitable in the year to 30 September 2016, our tribute mining operations have served to give us a foothold in the gold mining sector in Australia.

"In order to ensure that these operations are a profitable investment for the company, both in terms of capital investment and management time, Keras has implemented rigorous internal screening protocols for assessing new projects."

Story provided by