LONDON (ShareCast) - (Sharecast News) - AIM-listed minerals company Keras Resources confirmed on Wednesday that Calidus Resources, in which it holds a 35.8% equity interest, has kicked off a resource definition programme at its Warrawoona gold project in Western Australia.
Calidus' drilling programme, primarily targeted at increasing the site's existing gold resource base of 712,000 ounces to in excess of one million ounces, will include reconnaissance drilling to verify new targets that lie adjacent to the existing resource.

An initial 330,000-metre resource drilling programme, consisting of both reverse circulation and diamond drilling, which concentrate on the shallow, outcropping strike extensions to Klondyke for a distance of 1.2km east and 800m west of the existing resource, has commenced at the prospect.

Russell Lamming, chief executive of Keras, said, "The commencement of the next phase of resource drilling, which is expected to underpin a significant increase in mineral resource, is another important milestone for Keras shareholders. The targeted +1Moz resource will provide the critical mass required to underpin the proposed 100Koz per annum PFS, which will in turn trigger the conversion of Keras's outstanding 265m Performance Shares."

As of 0945 BST, Keras shares had dropped 6.67% to 0.35p.

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