Karora will host a call/webcast on November 12, 2020 at 10:00
a.m. (Eastern Time) to discuss the third quarter results.
North American callers please dial: 1-888-231-8191,
international callers please dial: (+1) 647-427-7450. For
the webcast of this event click
[here] (replay access information
below).
TORONTO, Nov. 12, 2020 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Corporation") is pleased to
announce its financial results and review of activities for the
three and nine months ended September 30,
2020. All amounts are expressed in Canadian dollars, unless
otherwise noted. For additional information please refer to
Karora's Management's Discussion & Analysis ("MD&A") and
unaudited condensed interim consolidated financial statements for
the three and nine months ended September
30, 2020 and 2019.
Highlights
- Third quarter 2020 consolidated gold production was 24,717
ounces. During the first nine months of 2020 gold production was
73,612 ounces, or 80% of the mid-point of annual guidance of 90,000
to 95,000 ounces, which is maintained (assuming no significant
interruption in operations as a result of the COVID-19
virus)
- Third quarter gold sales of 22,912 ounces were 1,805 ounces
lower than ounces produced due to timing of sales which is expected
to be captured in the fourth quarter
- Record low consolidated all-in-sustaining-costs
("AISC")1 of US$1,044 per
ounce since acquiring the Higginsville mill. AISC continued to
trend lower despite unfavourable foreign exchange impacts compared
to the second quarter which accounted for an additional
US$84 per ounce due to an 8% swing in
the AUD:USD exchange rate
- Karora maintains its 2020 cost guidance of US$1,050-US$1,200
per ounce and continues to target AISC costs of approximately
US$1,000 per ounce by the end of
2020
- Net earnings of $34.9 million,
or $0.24 per share for the third
quarter of 2020, up $25.1 million
from $9.8 million in the second
quarter of 2020
- Record adjusted earnings before interest, taxes,
depreciation and amortization ("EBITDA")1 of
$23.1 million or $0.16 per share for the third quarter of 2020, up
$5.8 million from $17.3 million in the second quarter of
2020
- Significantly strengthened cash position and balance sheet:
Karora ended the third quarter of 2020 with a strong cash position
of $67.3 million, an improvement of
$17.1 million from June 30, 2020, and working capital was flat at
$43.7 million
- In the third quarter of 2020 the Corporation's Beta Hunt
mine reversed an impairment on its mineral property of $36.1 million based on an impairment assessment
conducted in the third quarter of 2020. The after tax amount was
$25.3 million. The initial impairment
was recognized in the fourth quarter of 2017.
- Announced new high grade gold discoveries (Larkin Gold Zone,
new Footwall Zone in Western Flanks North) and first new nickel
discovery in 13 years (30C Nickel Trough) at the Beta Hunt Mine.
The discoveries are in close proximity to existing mine
infrastructure
- New coarse gold occurrence: On November 2, 2020, Karora announced that
underground development at the Beta Hunt Mine intersected an
estimated 2,000 ounces of coarse gold. The coarse gold was found in
the same geological environment as previously announced coarse gold
occurrences and proximal to the 2018 Father's Day Vein
discovery
- Increased Exploration Budget: As a result of drilling
success year to date and the multiple high quality exploration
targets across the Western Australian operations, the 2020
exploration budget was increased by approximately 50% to
A$15 million from the previous
A$9.5-A$10
million budget, with the majority to be spent on HGO drill
targets
- Spargos Reward acquisition completed on August 7, 2020: Spargos Reward is a high-grade
open pit gold project in Western
Australia that is expected to begin generating positive cash
flow for Karora in 2021
- Royalty reductions: An agreement to reduce the Beta Hunt
gold royalty by 2.75% (from 7.5% to 4.75%) effective July 1, 2020 was completed on September 3, 2020. During the second quarter of
2020 the Corporation eliminated the Morgan Stanley Capital Group
Inc. ("Morgan Stanley") NSR ("Net smelter royalty") gold royalty on
the Higginsville properties. The 110,000 ounce participation
payment arrangement with Morgan Stanley remains in place.
- On November 9, 2020, Karora
completed a re-purchase of the 3% gross gold royalty held by
Ramelius Resources Limited in respect of the Spargos Reward Gold
Project (acquired by Karora in August
2020) via payment of A$3
million, satisfied with A$2
million in cash and 264,187 Karora Shares.
- Sale of remaining interest in Dumont Nickel Project: on
July 27, 2020, Karora closed the sale
of its 28% interest in the Dumont Nickel Project for proceeds of up
to $47.6 million. Karora immediately
received $10.7 million in cash,
comprised of $7.4 million from
Waterton for its interest and a $3.3
million refund of Karora's share of the cash held within the
Dumont Joint Venture. On a future sale or other monetization event,
the Corporation will be entitled to receive 15% of the net proceeds
from the transaction (net of certain agreed costs and deductions)
up to a maximum of an additional US$30
million.
- Effective July 31, 2020, the
Corporation completed a consolidation of its outstanding common
shares on the basis of one (1) post-consolidation common share for
every four point five (4.5) pre-consolidation common shares. The
exercise price and the number of common shares issuable under any
of the Corporation's outstanding share-based securities such as
warrants, stock options and restricted share units, as applicable,
have been proportionately adjusted.
- Non-IFRS: the definition and reconciliation of these measures
are included in the Non-IFRS Measures section 14 of Karora's
MD&A dated November 12,
2020.
Paul Andre Huet, Chairman &
CEO, commented: "I am very pleased with our strong operational and
financial performance for the third quarter. We continued to
deliver operationally robust gold production and continued our
trend of reducing costs, despite challenges associated with
COVID-19 and the impact of a stronger Australian dollar during the
quarter, which negatively affected our US dollar cost reporting.
The negative foreign exchange impact added approximately
US$78 per ounce and US$84 per ounce to our cash operating costs and
AISC, respectively.
Our record adjusted EBITDA of over $23
million demonstrates our cash generating power now that we
have full exposure to market gold prices and significantly reduced
royalties across our properties in a strong gold price
environment.
We have established a strong track record over the last five
quarters with our consistent production results and declining costs
since we acquired the Higginsville mine and mill in 2019. During
the third quarter, we produced 24,717 ounces, for total production
during the first nine months of 2020 of 73,612 ounces, representing
82% of the lower end of our 2020 guidance. We did sell 1,805 fewer
ounces than we produced due to the timing of sales which we expect
to make up in the fourth quarter.
Our downward trend in AISC continued despite the elevated costs
associated with important COVID-19 precautions we have in place at
our operations and a stronger Australian dollar. AISC of
US$1,044 per ounce sold during the
quarter was a US$21 per ounce
improvement over the second quarter of 2020 and we continue to
target reaching our goal of US$1,000
per ounce by the end of 2020.
Following the 50% increase in our 2020 drilling budget to
A$15 million announced in September,
we are well underway with an aggressive campaign of approximately
50,000 metres to be completed in the fourth quarter. We are
beginning to see some impressive results already, including three
new discoveries at our Beta Hunt Mine, made up of a gold discovery
in a footwall zone in the Western Flanks shear and the new Larkin
Gold Zone and 30C Nickel Trough in the interpreted southern
extension of the Western Flanks shear. Additionally, an ore drive
in the A Zone shear recently intersected an estimated 2,000 ounces
of coarse gold in the same geological environment as the Father's
Day Vein discovery. At Higginsville we recently announced positive
near surface drilling results at our Aquarius Project which could
potentially lead to an economic starter pit, offsetting costs
associated with accessing higher grade material underground.
By the end of the year, we expect to provide an updated resource
and reserve estimate for our Australian operations that will
incorporate this year's drilling as well as reflect the improved
economics of our deposits given our work in reducing royalties
across the portfolio.
With Karora's record cash balance of over $67 million, our consistent gold production with
full exposure to market gold prices and an aggressive drill program
ongoing, I believe we are well positioned for a very exciting
fourth quarter. We have built a solid platform from which we are
well positioned to grow the business to the next level as we
prioritize our numerous organic growth opportunities."
COVID-19 Preparedness
Karora's strict COVID-19 control measures at its operations
remain in effect. The measures are in place to ensure operating
sites remain as prepared and responsive to the situation as
possible. While the situation in Western
Australia with respect to COVID-19 continues to be stable,
Karora continues to actively monitor the advice of local health
authorities and has continued to employ a full-time nurse and
supporting medical staff to monitor the status of individuals
entering and leaving site. Furthermore, the Corporation's adjusted
rotations for personnel on site, use of chartered Karora-only
flights where prudent, remain in place to help ensure the health
and safety of its employees and stakeholders, which remains the
Corporation's top priority.
Results of Operations
Table 1 - Highlights of operational results for the periods
ended September 30, 2020 and
2019
|
Three months
ended,
|
Nine months
ended,
|
For the periods ended
September 30,
|
2020
|
2019
|
2020
|
2019
|
Gold Operations
(Consolidated)
|
|
|
|
|
Tonnes milled
(000s)
|
354
|
296
|
994
|
435
|
Recoveries
|
92%
|
92%
|
92%
|
92%
|
Gold milled, grade
(g/t Au)
|
2.36
|
2.76
|
2.49
|
2.90
|
Gold produced
(ounces)
|
24,717
|
24,216
|
73,612
|
37,403
|
Gold sold
(ounces)
|
22,912
|
22,010
|
70,723
|
36,867
|
Average realized price
(US $/ounce sold)
|
$1,905
|
$1,339
|
$1,665
|
$1,308
|
Cash operating costs
(US $/ounce sold)1
|
$972
|
$1,032
|
$957
|
$1,062
|
All-in sustaining cost
(AISC) (US $/ounce sold)1
|
$1,044
|
$1,159
|
$1,071
|
$1,173
|
Gold (Beta Hunt
Mine)1
|
|
|
|
|
Tonnes milled
(000s)
|
191
|
210
|
563
|
342
|
Gold milled, grade
(g/t Au)
|
2.75
|
2.93
|
2.95
|
3.07
|
Gold
produced(ounces)
|
15,525
|
18,460
|
49,514
|
31,352
|
Gold sold
(ounces)
|
14,502
|
16,593
|
47,603
|
31,155
|
Cash operating cost
(US $/ounce sold)1
|
$1,035
|
$1,148
|
$985
|
$1,065
|
Gold (HGO
Mine)
|
|
|
|
|
Tonnes milled
(000s)
|
163
|
86
|
413
|
93
|
Gold milled grade (g/t
Au)
|
1.91
|
2.34
|
1.88
|
2.27
|
Gold produced
(ounces)
|
9,192
|
5,756
|
24,098
|
6,051
|
Gold sold
(ounces)
|
8,410
|
5,417
|
23,120
|
5,712
|
Cash operating cost
(US $/ounce sold)1
|
$863
|
$678
|
$901
|
$1,048
|
|
|
|
|
|
|
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section 14 of Karora's MD&A dated November
12, 2020.
|
Higginsville ("HGO")
During the third quarter of 2020, 200 kt was mined and 163 kt of
HGO material was milled at a grade of 1.91 g/t for production of
9,192 ounces of gold. Cash costs for the quarter were US$863 per ounce.
Production from the Baloo open pit contributed 128 kt in the
quarter. A re-optimization of the pit was completed and additional
mineralization identified in the northern portion of the pit which
has driven the development of a new ramp from the south. Further
exploration drilling will be conducted during the fourth quarter to
test the eastern margins of the main mineralized zone. Drilling
during the third quarter at Baloo was limited to grade control
holes.
At Hidden Secret, a staged pre-stripping program to access the
near surface mineralization commenced in August 2020. At Mousehollow, an open pit
optimization has been completed and a mining proposal submitted to
the appropriate authorities. Mining approval is expected in the
fourth quarter of 2020. Once online, these combined pits will
provide Karora with additional operational flexibility and mill
feed optimization in addition to existing production from Baloo and
Fairplay North.
Beta Hunt
During the third quarter of 2020, 191 kt of Beta Hunt material
was milled at a grade of 2.75 g/t for production of 15,525 ounces
of gold. Mined production from Beta Hunt was 199 kt during the
quarter, a 16% increase compared to the prior quarter. The ramp up
in production is a direct reflection of improved mining techniques
and the addition of a CAT R2900 underground loader into the mining
fleet.
Nickel production at Beta Hunt is currently restricted to
remnant nickel resources south of the Alpha Fault, however, recent
drilling has identified a number of new areas including the 30C
Nickel Trough, where production can potentially be increased. A
revised nickel production strategy, which is expected to provide a
by-product credit towards gold production costs, will be based on
an updated nickel mineral resource, which is expected to be
completed in the fourth quarter of 2020.
Subsequent to the end of the third quarter, as announced on
November 2, 2020, underground
development at the Beta Hunt Mine intersected an estimated 2,000
ounces of coarse gold. The coarse gold occurrence was found in the
same geological environment as previously announced coarse gold
occurrences and proximal to the 2018 Father's Day Vein discovery.
The new gold occurrence provides further support of Karora's
existing Coarse Gold Geological Model at Beta Hunt which could
potentially apply to other areas in the mine.
Consolidated Milling
On a consolidated basis, 354 kt were milled in the third quarter
of 2020 at an average gold grade of 2.36 g/t, to produce a total of
24,717 ounces of gold, increases of 9%, 4% and 3%, respectively
over the prior quarter. Milling operations had another quarter of
very strong cost performance with processing costs of A$21 per tonne which was in line with the second
quarter and a marked improvement compared to A$27 per tonne in the first quarter of 2020.
For the third quarter, the HGO mill feed was approximately 54% Beta
Hunt material and approximately 46% HGO open pit material.
Overall, Western Australia's
operational performance met or exceeded targets throughout the
quarter despite the additional cost and business disruption
associated with the COVID-19 pandemic which included both
restricted access to certain equipment and higher cost skilled
labour experienced across the State of Western Australia.
Cash Operating Costs and AISC
Cash operating costs1 and
AISC1 were US$972 and
US$1,044 per ounce sold respectively
on a consolidated basis for the third quarter of 2020.
During the third quarter the US dollar weakened by approximately
8% against the Australian dollar when compared to the second
quarter. This negatively impacted US dollar cash operating costs
and all-in sustaining costs for the third quarter by approximately
US$78 per ounce and US$84 per ounce, respectively. Despite this, cash
operating costs1 were only 4% higher compared to the
second quarter and AISC1 was 2% lower compared to the
second quarter.
Outlook and New Regional Mining Strategy
Following a strong operating performance over the first three
quarters of 2020 with total gold production of 73,612 ounces at an
AISC1 of US$1,071 per
ounce, Karora is maintaining its consolidated production and cost
guidance for its Australian operations (Beta Hunt and HGO) of
90,000 to 95,000 ounces of gold at an average AISC1
of US$1,050 to US$1,200 per ounce
sold. Karora continues to target AISC1 costs of approximately US$1,000 per ounce
sold by the end of 2020.
As announced on November 9, 2020,
a new regional mining strategy aimed at optimizing mine-to-mill
feed is being developed for Karora's 1.4 Mtpa HGO treatment plant.
With the increasing number of current and planned production
sources from Higginsville, Beta Hunt and Spargos, all competing for
a share of the feedstock, the new strategy divides Karora's
regional operating and near-term mining areas into four main mining
centres:
- Higginsville Central – This area is the main focus for
resource definition and conversion of resources to reserve drilling
and includes multiple existing and potential future open pits and
underground mines (including the Aquarius deposit) contained within
an approximate 10 kilometre radius of the HGO treatment
plant.
- Higginsville Greater – This area covers all remaining
projects and deposits outside Higginsville Central. However, given
its vast tenement area and large number of existing and potential
resource targets, this area may be further sub-divided over time.
Deposits such as Baloo and the Lake Cowan prospects fall within
Higginsville Greater.
- Beta Hunt – The Beta Hunt underground mine.
- Spargos – Acquired in August 2020 and a potential
source of short term, high grade mill feed to HGO.
Karora will provide further details on the new regional mining
strategy following the updated resource and reserve estimate
expected later in the fourth quarter.
HGO Exploration
At Aquarius, a successful near surface drilling program
completed during the third quarter outlined the potential for an
economic starter pit which could offset costs associated with
accessing the higher grade material underground. The near surface
drilling identified high grade supergene gold mineralization,
including 43.5 g/t over 3.0 metres and 5.7 g/t over 6.0 metres
(which included 14.6 g/t over 2.0 metres). For further details on
the results, see Karora news release dated November 9, 2020. Development of the Aquarius
starter pit could commence as early as mid-2021.
The existing Aquarius historical mineral resource 2
3 is 20 kt @ 19.5 g/t (Measured and Indicated) and 43 kt
@ 4.2g/t (Inferred).
Beyond Aquarius, limited exploration drilling was undertaken
during the third quarter at HGO owing to the utilization of the
drill rigs primarily for infill and grade control drilling at
Baloo, Fairplay North, Hidden Secret and Mousehollow. Exploration
drilling is scheduled to ramp up in the fourth quarter of 2020 with
the mobilization of additional drill rigs. Figure 1 below shows
some of the areas where Karora is either actively advancing or
evaluating high-priority exploration targets at HGO during the
fourth quarter following the announcement in September of an
expanded 2020 exploration budget to A$15
million.
_________________________________
|
1
Non-IFRS: the definition and reconciliation of these measures are
included in the Non-IFRS Measures section 14 of Karora's MD&A
dated November 12, 2020.
|
2 Karora
Resources profile at www.sedar.com technical report, February 6,
2020.
|
3 Westgold 2018 Annual Update of
Mineral Resources & Ore Reserves dated October 2, 2018,
available to view on the ASX (www.asx.com.au). A qualified person
has not done sufficient work on behalf of Karora to classify the
historical estimate noted as current mineral resources and Karora
in not treating the historical estimates as current mineral
resources.
|
Beta Hunt Exploration
Drilling at Beta Hunt during the third quarter was focused on
upgrading and extending the northern margin of the Western Flanks
mineral resource and testing nickel trough targets on the
basalt/ultramafic contact south of the Alpha Island Fault. The
drilling was successful in discovering new footwall mineralization
associated with the Western Flanks mineral resource, while the
nickel targeted drilling made the first new nickel discovery in 13
years (30C Nickel Trough) and, concurrently, also delineated a new
gold system – the Larkin Gold Zone – directly below the 30C Nickel
Trough. Please see Karora's news releases dated September 8 and 10, 2020 for further details on
the strong new discoveries made at Beta Hunt.
Exploration and resource definition drilling in the fourth
quarter is directed at testing the northern, up-plunge extent of
the A Zone, from both underground and surface positions, extending
the southern margin of Western Flanks, testing additional nickel
targets south of the Alpha Island Fault and testing the potential
along strike and down-dip potential of the newly discovered Larkin
Gold Zone.
Results from drilling completed will be incorporated into an
updated Beta Hunt Mineral Resource and Reserve statement aimed to
be released in later in the fourth quarter.
Spargos Reward Gold Project
The Spargos Reward acquisition was completed on August 7, 2020. Spargos is a historic high-grade
open pit and underground gold project located approximately 50
kilometres north of Higginsville.
Karora recently negotiated the acquisition and elimination of a
3% gold royalty covering the Spargos Reward tenement for
consideration of A$3 million,
satisfied with A$2 million in cash
and 264,187 common shares of the Corporation. Much like the
elimination of the Morgan Stanley NSR previously negotiated at
Higginsville, the Corporation anticipates that this will both
further improve the expected strong pit economics, as well as drive
further exploration successes across the Spargos land package.
An infill and extensional drilling program to convert historical
mineral resources to mineral reserves is underway. A revised
resource and reserve statement is expected to be completed in the
fourth quarter and will form the basis of an initial mine plan. The
Corporation expects to begin mining activities at Spargos in the
second quarter 2021.
Financial Highlights
Table 2 - Highlights of Third Quarter Financial
Results
(in thousands of dollars except per share
amounts)
For the periods
ended September 30,
2020
|
Three months
ended,
|
Nine months
ended,
|
2020
|
2019
|
2020
|
2019
|
Revenue
|
59,405
|
43,092
|
169,787
|
71,204
|
Production and
processing costs
|
28,032
|
26,670
|
81,093
|
47,212
|
Earnings (loss)
before income taxes1
|
50,208
|
(1,557)
|
68,334
|
(17,482)
|
Net earnings
(loss)1
|
34,867
|
(1,378)
|
45,224
|
(17,407)
|
Net earnings (loss)
per share - basic
|
0.24
|
(0.01)
|
0.33
|
(0.15)
|
Net earnings (loss)
per share - diluted
|
0.24
|
(0.01)
|
0.32
|
(0.15)
|
Adjusted
EBITDA2,3
|
23,097
|
4,021
|
55,901
|
(2,758)
|
Adjusted EBITDA per
share - basic2,3
|
0.16
|
0.03
|
0.41
|
(0.02)
|
Cash flow provided by
(used in) operating activities
|
20,827
|
2,072
|
54,125
|
(5,942)
|
Cash investment in
property, plant and equipment and mineral property
interests
|
(32,333)
|
(4,221)
|
(50,558)
|
(17,615)
|
|
|
1.
|
For 2020, Earnings
(loss) before income tax include an impairment reversal of $36.1
million and net earnings include an after tax impairment reversal
of $25.3 million.
|
2.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section of Karora's MD&A dated November 12,
2020.
|
3.
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA").
|
During the third quarter, Karora reversed an impairment on its
Beta Hunt mineral property totaling $36.1
million based on an impairment assessment conducted during
the quarter. After tax, the amount totaled $25.3 million based on the Australian corporate
tax rate of 30%. The initial impairment was originally recognized
in the fourth quarter of 2017.
Record adjusted EBITDA of $23.1
million was up 47% over the second quarter (and by
$21.4 million over the corresponding
2019 period). Consolidated gold sales were 1,805 ounces less than
gold produced during the third quarter (22,912 ounce sold versus
24,717 ounces produced) due to the timing of deliveries to the
Perth Mint. The Corporation expects to sell these ounces during the
fourth quarter.
Table 3 - Highlights of Karora's Financial
Position
(in thousands of dollars):
|
|
|
For the period
ended
|
September 30,
2020
|
December 31,
2019
|
Cash and cash
equivalents
|
67,299
|
34,656
|
Working
capital1
|
43,739
|
26,506
|
PP&E &
MPI
|
223,046
|
98,955
|
Total
assets
|
315,849
|
177,777
|
Total
liabilities
|
158,640
|
85,495
|
Shareholders'
equity
|
157,209
|
92,282
|
|
|
1
|
Working capital is a
measure of current assets (including cash and cash equivalents)
less current liabilities.
|
Karora finished the third quarter of 2020 with a strong cash
position of $67.3 million, an
increase of $17.1 million compared to
June 30, 2020. As at September 30, 2020, Karora had a working capital
surplus of $43.7 million.
For a complete discussion of financial results, please refer to
Karora's MD&A and unaudited condensed interim financial
statements for the three and nine months ended September 30, 2020 and 2019.
Conference Call / Webcast
Karora will be hosting a conference call and webcast today
beginning at 10:00 a.m. (Eastern
time). A copy of the accompanying presentation can be found
on Karora's website at www.karoraresources.com.
Live Conference Call and Webcast Access Information:
North American callers please dial: 1-888-231-8191
Local and international callers please dial: 647-427-7450
A live webcast of the call will be available through Cision's
website at:
Webcast Link
(https://produceredition.webcasts.com/starthere.jsp?ei=1394286&tp_key=363b46ced6)
A recording of the conference call will be available for replay
through the webcast link, or for a one-week period beginning at
approximately 1:00 p.m. (Eastern
Time) on November 12, 2020,
through the following dial in numbers:
North American callers please dial: 1-855-859-2056; Pass Code:
6191855
Local and international callers please dial: 416-849-0833; Pass
Code: 6191855
Compliance Statement (JORC 2012 and NI 43-101)
The disclosure of scientific and technical information contained
in this news release has been reviewed and approved by Stephen
Devlin, FAusIMM, Group Geologist, Karora Resources Inc., a
Qualified Person for the purposes of NI 43-101.
About Karora Resources
Karora is focused on growing gold production and reducing costs
at its integrated Beta Hunt Gold Mine and Higginsville Gold
Operations ("HGO") in Western
Australia. The Higginsville treatment facility is a low-cost
1.4 Mtpa processing plant which is fed at capacity from Karora's
underground Beta Hunt mine and open pit Higginsville mine. At Beta
Hunt, a robust gold mineral resource and reserve is hosted in
multiple gold shears, with gold intersections along a 4 km strike
length remaining open in multiple directions. HGO has a substantial
historical gold resource and prospective land package totaling
approximately 1,800 square kilometers. Karora has a strong Board
and management team focused on delivering shareholder value.
Karora's common shares trade on the TSX under the symbol KRR.
Karora shares also trade on the OTCQX market under the symbol
KRRGF.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains "forward-looking information"
including without limitation statements relating to the liquidity
and capital resources of Karora, production guidance and the
potential of the Beta Hunt Mine, Higginsville Gold Operation, the
Aquarius Project and the Spargos Gold Project.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Karora to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to Karora 's filings with
Canadian securities regulators, including the most recent Annual
Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Karora disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
Cautionary Statement Regarding the Higginsville Mining
Operations
A production decision at the Higginsville gold
operations was made by previous operators of the mine, prior to the
completion of the acquisition of the Higginsville gold operations
by Karora and Karora made a decision to continue production
subsequent to the acquisition. This decision by Karora to continue
production and, to the knowledge of Karora, the prior production
decision were not based on a feasibility study of mineral reserves,
demonstrating economic and technical viability, and, as a result,
there may be an increased uncertainty of achieving any particular
level of recovery of minerals or the cost of such recovery, which
include increased risks associated with developing a commercially
mineable deposit. Historically, such projects have a much higher
risk of economic and technical failure. There is no guarantee that
anticipated production costs will be achieved. Failure to achieve
the anticipated production costs would have a material adverse
impact on the Corporation's cash flow and future profitability.
Readers are cautioned that there is increased uncertainty and
higher risk of economic and technical failure associated with such
production decisions.
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SOURCE Karora Resources Inc.