REG - Keras Resources PLC - Diamond Creek Phosphate Mine Update

Keras ResourcesAnnouncement

29/03/2021 07:05

RNS Number : 7185T
  
Keras Resources PLC
  
29 March 2021
  
 

Keras Resources plc / Index: AIM / Epic: KRS / Sector: Mining
29 March 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'), owned by the Company's 51% subsidiary, Falcon Isle Holdings LLC.
 
·    CEO Russell Lamming and COO Graham Stacey recently completed a three-week management trip in Utah, immediately after the previously announced two-week visit to Togo.
·    Encouraging results from the Falcon Isle marketing campaign over the winter period which has reinforced management's confidence that 2021 sales targets will be met.
·    COVID-19 travel restrictions, which prevented the plant manufacturer's engineer to be on site during construction, has slowed the construction timeline and the new Diamond Creek processing plant will now be commissioned in Q2 2021.
·    Due to the significant demand for both milled and granulated product Falcon Isle has extended its third-party toll treating agreements to ensure that product is available during the final stage of the plant construction.  
·    The increase in run-of-mine production during the 2020 mining campaign has ensured that there is sufficient plant feed until mining resumes in the Spring.
·    Once installed the increased plant capacity and the expected associated economies of scale will reduce the unit cost and bolster margins going forward.
 
Keras Resources CEO, Russell Lamming said: "The trip to Togo and Utah has been extremely constructive and has proved how important face-to-face management interaction is in our industry.  Notwithstanding the significant impact that the pandemic has had, our US team have done a great job in both maintaining operational output and building value at the Diamond Creek operation. Despite the short delay in the timetable to commissioning, I am pleased to say that management believes sales targets of 10,000 tons for 2021 remain achievable.  The demand for our range of products has been very encouraging and we are looking forward to a very busy period as we move in to Spring and the recommencement of mining operations.  We look forward to delivering further news regarding the commissioning of the processing plant and our 2021 production schedule in due course."
 
**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
Ewan Leggat / Charlie Bouverat
 
Joint Broker
Damon Heath / Erik Woolgar
 


SP Angel Corporate Finance LLP
 
 
Shard Capital Partners LLP
 


+44 (0) 20 3470 0470
 
 
+44 (0) 207 186 9900
 




Financial PR
Susie Geliher / Cosima Akerman


St Brides Partners Ltd


+44 (0) 20 7236 1177



 
 

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