Keras Resources PLC Diamond Creek Phosphate Mine Update (1569L)
January 11 2021 - 2:00AM
UK Regulatory
TIDMKRS
RNS Number : 1569L
Keras Resources PLC
11 January 2021
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
11 January 2021
Keras Resources plc ('Keras' or the 'Company')
Diamond Creek Phosphate Mine Update
Keras Resources plc, the AIM listed mineral resource company, is
pleased to announce an update on progress at the Diamond Creek
high-grade direct shipping ore ('DSO'), organic phosphate mine in
Utah, USA ('Diamond Creek').
OVERVIEW
-- Completion of US$2.5m loan to Falcon Isle Holdings LLC
('Falcon Isle') thereby enabling the Company to increase its
interest in Falcon Isle to a controlling 51%
-- Positive results from third party granulation tests with
commercial production and associated sales planned for mid-January
2021
-- First 50lb -10 and -100 mesh high grade, organic phosphate
has been bagged and is ready for dispatch
-- Processing plant is currently in transit to the United States
and expected to arrive in Utah by the end of January 2021 with
commissioning on track for Q1 2021
Keras Resources CEO, Russell Lamming said: "Keras has now
provided the full US$2.5m loan to Falcon Isle and as such now holds
a controlling 51% interest in Falcon Isle. It is less than six
months since the transaction was concluded and commercial
production commenced, so progress from a standing start to a fully
integrated mine-to-market project has been very encouraging. The
commissioning of the Utah processing plant will increase both our
production capacity and flexibility to produce a variety of high
grade, organic phosphate products, which will underpin the drive to
grow market share whilst driving down costs.
FURTHER INFORMATION
Diamond Creek Phosphate Project
Diamond Creek is a fully permitted, high grade DSO, low capex
organic phosphate mine owned by Falcon Isle; the Company now holds
a 51% interest in Falcon Isle having paid the final tranche of a
US$2.5m loan to Falcon Isle (see announcement dated 30 July 2020).
The mine achieved first commercial production in late July 2020 and
the first beneficiated -10 mesh organic product, part of a 770-ton
order, was dispatched in early September.
The 2020 mining campaign was completed in October 2020 with a
total of 7,620 ore tons now extracted from the Diamond Creek
phosphate mine. As previously reported, the Company decided to
increase Year 1 production by 50% from 5,000 tons to 7,500 tons to
ensure sufficient material over the winter while maintaining the
phased increase to the Year 5 target of 48,000 tons of commercial
production. The increase in planned production does not change the
terms of the agreement announced on 30 July 2020.
Current beneficiation is being undertaken through toll-treating
agreements. Notably, the Company has received positive results from
third party granulation tests with commercial production and
associated sales planned for mid-January 2021. In addition, the
first offering of 50lb bagged -10 and -100 mesh high grade, organic
phosphate is now ready for sales.
A new plant, to be owned and operated by Falcon Isle, which has
the capacity to process the 5-year 48,000-ton production target, is
now being shipped from Shanghai and is expected to be commissioned
in Q1 2021. The plant will include a crushing and milling circuit
to produce a range of products comprising -10 mesh, -100 mesh and
-350 mesh powders and a granulation plant to produce high margin
granulated organic phosphate. The processing facility also includes
a bagging plant to ensure that all products are available in both
one ton tote bags and 50lb bags. Once commissioned, the plant will
increase both the available capacity and flexibility to produce
different sized beneficiated material whilst lowering operating
costs.
**ENDS**
For further information please visit www.kerasplc.com , follow
us on Twitter @kerasplc or contact the following:
Russell Lamming Keras Resources plc info@kerasplc.com
Nominated Adviser & Joint
Broker SP Angel Corporate Finance
Ewan Leggat / Charlie Bouverat LLP
Joint Broker Shard Capital Partners +44 (0) 20 3470 0470
Damon Heath / Erik Woolgar LLP +44 (0) 207 186 9900
Financial PR
Susie Geliher / Cosima
Akerman St Brides Partners Ltd +44 (0) 20 7236 1177
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
UPDDBLFFFFLXBBB
(END) Dow Jones Newswires
January 11, 2021 02:00 ET (07:00 GMT)
Keras Resources (LSE:KRS)
Historical Stock Chart
From Apr 2024 to May 2024
Keras Resources (LSE:KRS)
Historical Stock Chart
From May 2023 to May 2024