Keras Resources PLC (LON:KRS) said 2016 will be characterised with maiden cash flows, with gold production expected in the second quarter, it said, as it posted 2015 results.
The firm was formerly Ferrex and following significant restructuring of aims it recently acquired Chaffers, which holds the Grants Patch Gold tribute agreement in Western Australia.
It struck a 50:50 profit share agreement with Kalgoorlie Mining to exploit the Wycheproof gold deposit, which is a high-grade, shallow deposit on an existing mining lease with a resource of 75,600t at 2.87 g/t for 6,974 ounces.
The firm is targeting 20,000 to 30,000 ounces of gold a year in the second quarter of 2016 and the firm can use its existing fleet and infrastructure at Wycheproof.
Other highlights of 2015 were finalising the Definitive Feasibility Study (DFS) for its Nayega manganese project in Togo, which indicated that the capital and operating costs will be substantially reduced from previous estimates.
The loss before tax for the year was £5.7mln compared to a loss of around £1.8mln in 2014, while it ended the period with £64,000 in cash, compared to £107,000 as at Sep 30, 2014.