LONDON (ShareCast) - (ShareCast News) - Mineral resource company Keras Resources updated the market on Tuesday, following an announcement published by Calidus Resources in which it holds a 30% interest.
The AIM-traded firm said Calidus had commenced diamond drilling alongside the ongoing RC Drill programme at its flagship Warrawoona Gold Project, located in the Pilbara region of Western Australia.

Calidus' current drilling campaign was intended to support a "significant" resource upgrade in the fourth quarter, with a large portion of that updated resource estimate forecast to be in the 'indicated' category.

As was previously announced, once an indicated resource of at least 500,000 ounces is declared, Keras would receive 241.25 million ordinary shares in Calidus, which would increase Keras' holding to around 50% of Calidus' total issued share capital based on the number of shares currently in issue.

The Keras board said the programme would include drilling a total of nine holes in the main Klondyke Shear, Copenhagen, Coronation and Fieldings Gully deposits.

It said the purpose of the drill programme was to "provide information" for structural geology and metallurgical testwork.

"To assist in generating a revised resource by end of this year, Calidus have commenced a diamond drill programme," commented Keras managing director Dave Reeves.

"The drill programme will allow detailed understanding on the structural geology of the deposit and provide core for initial metallurgical work.

"This is another step forward in Calidus' aggressive pursuit of this rapidly developing project."

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