- Keras Resources has confirmed high grade gold intercepts near the surface at its Klondyke gold project in the East Pilbara District of Western Australia.

Keras said results from the first two holes (of an eight hole programme) have been received. The holes were drilled under the Copenhagen pit to confirm historic gold intercepts.

Results highlight the potential for resumption of mining at Copenhagen, with high grade mineralisation confirmed directly beneath the small historic open cut.

Extensional drilling and further check drilling is planned in this area next year as it hosts high grade, potentially open-pittable mineralisation.

Managing director Dave Reeves said: "It is rare to find such wide, high grade intercepts so near to the surface and these results from the two Copenhagen drill holes continue to support our belief that our flagship Klondyke gold project has the potential to become a significant gold deposit.

"Drilling has confirmed the historic intercepts and builds confidence in the database as we identify targets for our 2017 drill programme with the intention of extending the current resource estimate of 5.6Mt at 2.08g/t Au for 374,000oz.

"Copenhagen is open in most directions and in the recently completed mapping and sampling programme, visible gold was identified in a chip sample 400m to the north of the drilled area.

"A 3g/t Au rock sample collected from outcrop in an area of no historic workings more than 300m south east of the drilled area has also highlighted the excellent upside we see in this area, indicating the strong potential to build upon the current resource.

"The entire project area has seen limited systematic modern exploration over extensive strike lengths due to its previous fragmented ownership, creating significant upside opportunity for Keras. We look forward to delivering upon these objectives in the new year."

At 8:30am: [LON:KRS] Keras Plc share price was +0.05p at 0.5p

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