Despite a slowdown as a result of COVID-19, AIM-listed Keras Resources is confident it can increase processing capacity at its Nayega manganese project in Togo at no extra cost.
Togo – Nayega has installed processing capacity capable of producing about 75 000 tpa without any further capital expenditure, which, on receipt of its exploitation licence, will be expanded to 300 000 tpa.
Keras Resources reported that a decree permitting Société Générale de Mines SA (SGM) to undertake large scale mining was promulgated following a meeting of the Council of Ministers of the held in October last year. All documentation, including the conversion of SGM from an SARL entity to a SA entity has now been completed.
Nayega the primary focus
According to a company statement,the primary focus of Keras Resources remains the development of the Nayega into a profitable, cashflow generative mine.
The design and testwork has been completed for the new plant but manufacturing of this plant has been put on hold until the company has further clarity on the ability to safely return to work post the outbreak of the COVID-19 pandemic.
Expanded production also requires dedicated storage and loading facilities at the port of Lome, which have been identified and costed into the expansion plan. Keras Resources has been in discussions with several end-users and commodity traders in conjunction with an offtake agreement and associated pre-payment and stockpile loan facilities, to ensure that will equity funding required to complete the planned expansion is limited.
The Nayega deposit comprises eluvial rubble of manganese oxides ranging in size from flakes to cobbles, overlying detrital and in-situ manganese ore extending up to 10 m below surface blanketed by a veneer of detrital material that averages 0.5 m thick. Mineralisation extends over a strike length of 2.2 km at widths of up to 500 m.