TIDMKRS
RNS Number : 1599F
Keras Resources PLC
11 July 2019
Keras Resources plc / Index: AIM / Epic: KRS / Sector:
Mining
11 July 2019
Keras Resources plc ('Keras' or the 'Company')
Nayega Manganese Metallurgical Testwork Results
Keras Resources plc, the AIM listed mineral resource company, is
pleased to announce results from the metallurgical testwork on the
10,000-tonne bulk sample collected at its flagship asset, the
Nayega Manganese ('Mn') Project, in northern Togo ('Nayega' or 'the
Project'). Testwork undertaken included production chemical
analysis to prove up the on-site beneficiation circuit,
metallurgical testwork to prove the suitability of the ore in the
manganese alloys industry, and leach testwork to assess whether the
ore has the potential to be a source of high grade manganese in
lithium-ion batteries to supply the growing Electric Vehicle ('EV')
market.
Highlights
-- Testwork assessing the potential to supply Nayega manganese to the steel industry:
o On-site processing using dry screening and wet scrubbing to
produce a beneficiated ore averaged 38.88% Mn, 6.28% Fe and 11.5%
SiO(2)
o Nayega ore is best suited to production of silico-manganese
alloy
o Discussions remain ongoing with potential off-takers to
provide both development funding to expand the existing 6,500
saleable tonnes per month operational infrastructure and for an
off-take agreement for future ore produced at Nayega
-- Testwork assessing the potential to supply Nayega manganese
to the battery and/or agriculture sectors:
o Sighter leaching testwork completed on samples obtained from
the transitional and deeper Saprolitic zones within the Nayega
orebody
o Leaching results have been encouraging with in excess of 90%
recovery being achieved in less than two hours from both ore
samples
o Nayega manganese is an oxide ore which leaches more favourably
compared with South African carbonate ores
o Solutions produced contained minimal concentrations of
impurities, indicating a reduced risk of issues in downstream
processing
o Significant growth potential for manganese as a replacement
for cobalt in lithium-ion batteries as producers look to secure
cost competitive, responsibly mined long term raw material
supply
o Potential to de-risk Nayega's exposure to the volatile steel
market by diversifying into the growing EV market
Russell Lamming, Chief Executive Officer of Keras, commented,
"We are exceptionally pleased that the bulk sample from Nayega was
successfully delivered on time, within budget and has been
underpinned by encouraging chemical analysis which further
consolidates the commercial viability of the Nayega mine. The bulk
sample produced higher than expected manganese content and, due to
the expected relatively high silica content, it has been determined
that the ore is better suited to the production of silico-manganese
rather than the production of ferro-manganese. The bulk sample
results comprehensively proved up the Project from mine to market
and we look forward to moving forward following receipt of the
Exploitation Permit which is currently outstanding.
"In addition, with the inherently volatile nature of the
downstream manganese alloy market and the growing demand for a cost
effective, responsibly mined replacement for cobalt in the
production of lithium-ion batteries, we have started additional
leach testwork on the Transitional and Saprolitic zones of the
Nayega orebody that were not tested in the bulk sample. It is
widely understood that reductive leaching is not always amenable to
all manganese minerals, let alone able to selectively dissolve the
manganese content of the ore, so the initial testwork results are a
very encouraging first step. It is our intention to follow up this
work with a further detailed testwork programme aimed at optimising
the leaching conditions and studying the purification processes
required to ensure the production of a battery grade of manganese.
I look forward to updating our shareholders when practicable."
Findings of the Metallurgical Testwork Programme
Having commenced in August 2018, Keras concluded its role in the
bulk sampling metallurgical testwork programme on 26 March 2019
with the successful shipping of the manganese ore. The programme
was fully funded by a major producer of manganese-based alloys.
Nominally, a +6mm lump manganese was produced from the Detrital
and Laterite horizons of the Nayega geological sequence through an
in-field dry screening unit and a purpose-built 25 tonne per hour
wet scrubbing circuit. On-site production analysis was achieved
using an Olympus hand-held X-Ray Fluorescence ('XRF') analyser, and
final outturn shipping analysis was conducted by independent
laboratory, SGS Togo SA in Lomé.
Ore shipped to the third-party producer was introduced into a
silico-manganese furnace at a range of ratios (Nayega ore to total
ore feed) to understand its chemical, physical and smelting
characteristics within a blend of alternative feed ores. A feed
rate of 340kg/t (34%) was determined to be peak feed ratio for the
furnace selected. Ongoing optimisation of Nayega ore to improve
resource utilisation will focus on product sizing which will enable
the production of a +10mm lump product for direct smelter feed, and
a fine -10+1mm product better suited for sinter plant feed. Current
proposed planning, subject to the award of an exploitation license,
is to double current production capacity from 6,500tpm to 13,000tpm
of saleable ore through a plant upgrade which will include a
downstream screening circuit to produce these size fractions. The
plant as currently configured is capable of producing some 75,000
tons per annum, which would result in a substantial profit for
Keras. However, on receipt of the exploitation licence Keras
expects to expand and improve the plant to add more value as well
as increasing production. The Company intends this to be financed
in conjunction with an offtake agreement rather than equity
funding.
Findings of the Leach Testwork Programme
The objective of the leach test programme was to assess whether
the manganese in the ore could be extracted by sulphur dioxide
leaching. Samples of the underlying Transitional and Saprolitic
geological horizons were tested in Perth, Australia by Simulus
(Pty) Ltd in Welshpool, with the exception of mineralogical
analysis by X-Ray Diffusion ('XRD'), which was performed by ALS
Metallurgy Services. Analysis indicated that the dominant manganese
minerals detected were in oxide materials in the form of
Cryptomelane and Birnessite (with Quartz and Kaolinite being the
two major gangue minerals), suggesting that the samples are likely
amenable to sulphur dioxide leaching. Sulphur dioxide leaching of
the samples achieved extractions of 96% and >99% for the
Transitional and Saprolitic samples respectively within 2
hours.
A longer leach time and/or more efficient residue washing would
likely lead to further manganese extraction from the Transitional
ore. The second stage of the programme will be to optimise
manganese leaching to both improve extraction from the transitional
ore, study of options for separation of the leached manganese from
the gangue metals prior to crystallization and the economic
analysis of any flowsheet options
Additional Information
The mine is currently on care and maintenance pending the
granting of an Exploitation Permit at which point operations will
recommence at a rate of approximately 6,500 tonnes per month of
saleable +38% Mn ore.
Discussions are ongoing with potential off-takers to provide
both development funding to expand the existing operational
infrastructure and for an off-take agreement for future ore
produced at Nayega.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014.
**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 SP Angel Corporate Finance +44 (0) 20 3470
Bouverat LLP 0470
Financial PR
Isabel de Salis / Cosima +44 (0) 20 7236
Akerman St Brides Partners Ltd 1177
Notes
Keras Resources plc is focused on building a strategic portfolio
of resource assets. The Company provides investors with exposure to
a portfolio of development assets, including manganese, cobalt and
nickel in Togo, West Africa. It also has a significant interest in
Calidus Resources Limited ('Calidus'), a highly prospective gold
exploration and development company in Australia, which is
currently undertaking a Pre-Feasibility Study at its Warrawoona
gold project. Keras benefits from a highly skilled management team,
which has extensive operational experience in Africa and Australia
and proven success in advancing assets up the value curve.
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.
END
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