Keras Resources (LON:KRS), formerly known as Ferrex is on track to start production from its new gold venture in Australia in the second quarter.
The project, a five year tribute agreement with Paddington Goldfields, will initially produce 30,000 tonnes per month from two shallow laterite gold pits.
Modelling by Keras has indicated resources of 164,000t of ore in the pits at an average grade of 1.4g/t or 7,200oz of gold.
No pre-strip is required, with the two pits expected to provide 4 to 5 months of production feed.
Historic resource estimates for the whole prospect area are 5.74mln t at an average grade of 2g/t or 363,000oz of gold.
Work is ongoing on a feasibility study into re-opening the Prince of Wales underground mine, which has historic resources estimated at 650,000t at an average grade of 10g/t for 209,000oz gold.
The plan is to produce approximately 5,000t of ore per month for the life of the contract with Paddington, a subsidiary of Norton Goldfields.
Dave Reeves, Keras’s managing director, said the project was on time and importantly on budget.
“The internal feasibility work on re-accessing the ultra-high grade Prince of Wales mine is also progressing well.”
Shares rose 1% to 0.46p.