Keras Resources (LSE:KRS) rose 2.7pc to 0.38p this morning after revealing that it has discovered a new prospect called Ogaro at its Nayega Manganese Project in Northern Togo. The business, which now sits just above its 0.375p placing price in October 2017, said the prospect covers an additional eight hectares of outcropping manganese in an area 5km east-southeast of the main Nayega deposit.
After recovering positive results from mineralisation samples, Keras said Ogaro provides further upside and broader prospectivity to Nayega, which currently has a JORC resource of 13.97Mt at 12.4pc manganese. It will now begin a phase one pitting exercise on a 100m X 100m grid at the prospect immediately to confirm tonnage and grade and to test for further extensions to identified mineralisation.
Keras recently began a 10,000t bulk sampling metallurgical testwork programme at Nayego. This work will see a major manganese-based alloy producer assess the suitability of the project’s ore for its smelting facilities. Manganese has many industrial metal alloy uses and is a particularly important element in the stainless steel industry.
Russell Lamming, chief executive officer of Keras, said: ‘The identification of a significant new area of outcropping mineralisation at Nayega further lays the foundation and increases our expectations for what we believe will become a new low capex, low operating cost manganese producer.
‘We have been very active in the area since approval from the Togolese Ministry of Mines was granted for the 10,000t bulk sampling testwork programme and we are looking to increase the current 14Mt JORC Resource. We have now employed a team from the local community which has, to date, been involved in the preparation of the bulk sample site and will now move over to the Ogaro area to commence a pitting exercise.’