Keras already has a tribute agreement with Norton over the Grants Patch lease in Western Australia’s Goldfields, where it is currently mining.
The agreement has now been broadened to include the Royal Standard North lease, 20km south of Grants Patch.
Keras estimates that 25,000-50,000 tonnes of ore at around 2 grams per tonne can be defined before mining begins, and is undertaking grade control drilling.
“Due to its location, existing permits and size, we intend to complete the mining of this deposit in the near-term, subject to satisfactory grade control drill results and final approval of the project management plan by the Department of Mines,” Keras managing director Dave Reeves said.
Last month Keras received its first payment from Norton for ore processed as part of a pre-payment agreement.
The company also has an option agreement with ASX-listed KalNorth Gold Mines over the 215,000 ounce Lindsays project.
To exercise the option, Keras must start open pit mining within two months of receiving DMP approval.
Keras shares have surged by 175% in London since the start of the year. The company, which is led by Australians, is the AIM’s only Australian gold producer.
