Highlights:
- Consolidated gold Proven and Probable Mineral Reserves
increase by 334 % to 1.33 million ounces
- Consolidated gold Measured and Indicated Mineral Resources
increase by 167% to 2.52 million ounces
- The new Consolidated gold Mineral Resources and Reserves
will form the basis of Karora's organic growth profile to be
announced in the first quarter of 2021
- Due to the very strong drilling results only recently
received, an updated Spargos Reward Mineral Resource and Reserve
will be completed in the first half of 2021 to incorporate the new
high grade zone announced on November 18,
2020.
- New Beta Hunt nickel Measured and Indicated Mineral
Resource, the first since 2016, of 16,100 nickel tonnes
- At Higginsville (HGO), re-estimation by Karora in 2020 of
Westgold's Historical Mineral Resources and
Reserve1. has enabled these
historical estimates to be classified as part of Karora's current
Mineral Resource and Reserve Inventory
TORONTO, Dec. 16, 2020 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Corporation") is very pleased to
announce a 334% increase in consolidated gold Proven and Probable
("2P") Mineral Reserves to 1.33 million ounces for its Beta Hunt
and Higginsville operations in Western
Australia. The updated Mineral Resource and Reserve estimate
is effective as of September 30,
2020.
The Corporation is also pleased to announce new consolidated
Measured and Indicated ("M&I") gold Mineral Resources of 2.52
million ounces, representing a 167% increase. The Mineral Resource
and Reserve update announced today does not include the high grade
Spargos Reward Project, which is expected to be completed in the
first half of 2021.
Paul Andre Huet, Chairman &
CEO, commented: "The 334% increase in the 2P gold Mineral Reserves
to 1.33 million ounces and 167% increase in gold Mineral Resources
to over 2.5 million ounces is an outstanding achievement for
Karora. This update marks the establishment of our very first
consolidated Mineral Resource and Reserve estimate across our two
primary assets in Beta Hunt and Higginsville, completed on schedule
despite significant drilling delays associated with COVID-19
precautions during the middle of the year. Importantly, the very
large increases are net of mining depletion through to the end of
the third quarter of 2020.
_________________________
|
1
|
Westgold historical
estimate as of June 30, 2018 – Reserves (0.37Mozs), Measured and
Indicated Resource (1.22Mozs) and Inferred Resource (0.68Mozs),
(www.westgold.com.au)
|
At Beta Hunt, where we announced our maiden Karora Mineral
Reserve estimate last year, we added 176,000 ounces, representing a
strong 57% increase over 2019. Grades remained robust, however we
are certainly excited to further define the newly discovered high
grade Larkin Zone announced in mid September which will be included
in our 2021 estimate next year.
At Higginsville, when compared to the previous historical
estimate completed by Westgold Resources in 2018, our 2020 drilling
and re-estimation efforts added nearly 500,000 ounces, increasing
2P Mineral Reserves by 130%.
At Higginsville Central, where mining will be focused over the
short and medium term, we have outlined a Reserve of 218,000 ounces
at high open pit grades of 2.0g/t. This Reserve is backed by a high
grade M&I Mineral Resource of 382,000 ounces at 2.8g/t, which
we expect to be further bolstered by mid-2021 via the addition of
feed from our high grade Spargos Reward open pit into the
Higginsville plant.
Due to the very strong recent drilling results announced in
November, we now expect to have an updated Mineral Resource and
Reserve estimate completed at Spargos in the first half of 2021.
Next year will also see further drilling across all main projects,
including the highly prospective targets at Lake Cowan and the
first of the underground mines at Higginsville. After our first
year of ownership, Higginsville is certainly shaping up to be both
a high grade and long-lived operation.
While this is an outstanding start to our Mineral Resource and
Reserve growth plan, I am even more encouraged by the exciting
exploration targets we have selected for drilling in 2021. Moving
forward, this updated Mineral Resource and Reserve estimate will
form the basis for Karora's organic growth strategy which I look
forward to outlining to the market during the first quarter of next
year."
Mineral Resource and Reserve Summary
Karora Consolidated Gold Mineral Reserves as at 30 September, 2020
Sept-2020
Mineral Reserve
|
Proven
|
Probable
|
Proven &
Probable
|
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Beta Hunt
|
329
|
2.4
|
25
|
5,451
|
2.6
|
456
|
5,780
|
2.6
|
482
|
Higginsville
|
8,503
|
1.3
|
362
|
9,249
|
1.6
|
483
|
17,752
|
1.5
|
845
|
Total
|
8,832
|
1.4
|
387
|
14,700
|
2.0
|
940
|
23,531
|
1.8
|
1,327
|
Karora Consolidated Gold Mineral Resources as at 30 September, 2020
Sept-2020
Mineral Resource
|
Measured
|
Indicated
|
Measured
& Indicated
|
Inferred
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Beta Hunt
|
630
|
2.4
|
49
|
11,369
|
2.8
|
1,006
|
11,999
|
2.7
|
1,055
|
6,146
|
2.7
|
537
|
Higginsville
|
13,362
|
1.4
|
604
|
16,633
|
1.6
|
862
|
29,994
|
1.5
|
1,466
|
4,581
|
2.1
|
310
|
Total
|
13,992
|
1.5
|
653
|
28,001
|
2.1
|
1,868
|
41,994
|
1.9
|
2,521
|
10,727
|
2.5
|
847
|
Karora Consolidated Nickel Mineral Resources as at
30 September, 2020
Sept-2020
Mineral Resource
|
Measured
|
Indicated
|
Measured
& Indicated
|
Inferred
|
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Beta
Hunt
|
-
|
-
|
-
|
561
|
2.9%
|
16,100
|
561
|
2.9%
|
16,100
|
314
|
2.8%
|
8,680
|
|
Nits refers to
contained nickel tonnes
|
Higginsville
Reporting for the Higginsville Mineral Resource and Reserve
inventory is split into two main areas – Higginsville Central and
Higginsville Greater. The former covers Mineral Resources within a
radius approximately 10 kilometres of the Higginsville mill while
Higginsville Greater covers all Mineral Resources that fall outside
the Higginsville Central area (see Figure 1).
Higher grade Higginsville Central will form the basis of the
short and medium term mine plan at Higginsville which will be
outlined as part of Karora's organic growth plan early next year.
Importantly, numerous brownfields opportunities remain to target
significant additional high grade, near term additions at
Higginsville Central in 2021 including, but not limited to, the
Aquarius Project and underground at Two Boys.
Higginsville Gold Mineral Reserves as at September 30, 2020
Sept-2020
Mineral Reserve
|
Proven
|
Probable
|
Proven &
Probable
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
HGO
Central
|
340
|
2.2
|
24
|
3,016
|
2.0
|
194
|
3,357
|
2.0
|
218
|
HGO
Greater
|
7,988
|
1.3
|
333
|
5,454
|
1.5
|
268
|
13,442
|
1.4
|
602
|
Stockpiles
|
175
|
0.8
|
5
|
778
|
0.8
|
21
|
953
|
0.8
|
25
|
Total
|
8,503
|
1.3
|
362
|
9,249
|
1.6
|
483
|
17,752
|
1.5
|
845
|
Higginsville Gold Mineral Resources as at September 30, 2020
Sept-2020
Mineral Resource
|
Measured
|
Indicated
|
Measured
& Indicated
|
Inferred
|
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
HGO
Central
|
953
|
3.0
|
91
|
3,266
|
2.8
|
291
|
4,219
|
2.8
|
382
|
1,455
|
3.1
|
145
|
HGO
Greater
|
12,234
|
1.3
|
508
|
12,094
|
1.4
|
540
|
24,328
|
1.3
|
1,048
|
3,126
|
1.6
|
165
|
Stockpiles
|
175
|
0.8
|
5
|
1,273
|
0.7
|
30
|
1,448
|
0.7
|
35
|
-
|
-
|
-
|
Total
|
13,362
|
1.4
|
604
|
16,633
|
1.6
|
862
|
29,994
|
1.5
|
1,466
|
4,581
|
2.1
|
310
|
During 2020, Karora completed a comprehensive re-estimation of
the Higginsville Mineral Resources and Reserves, replacing the
historical estimate previously compiled by Westgold Resources as at
June 30, 2018. The Higginsville
Mineral Resource and Reserves are now part of Karora's consolidated
Mineral Resource and Reserves.
At Higginsville, gold Mineral Reserves increased by 478,000
ounces, or 130% over the previously reported Historical Mineral
Reserves of 367,000 ounces (see Karora's Technical Report dated
February 6, 2020 available under
Karora's profile on Sedar.com). Higginsville Central, the focus of
near and medium term mining, hosts a high grade Mineral Reserve of
218,000 ounces at 2.0 g/t.
Measured and Indicated gold Mineral Resources at Higginsville
increased by 242,000 ounces, or 20%, compared to the Historical
Measured and Indicated Mineral Resource of 1,223,000 ounces. At
Higginsville Central, Resource grades improved to a strong 2.8g/t
(382,000 ounces), highlighting the success of Karora's early 2020
focus on upgrading the Historical Mineral Resource for short-term
production mining options.
For 2021, exploration and resource definition drilling at
Higginsville is planned to upgrade and extend short-term mining
production targets (<2 years) in Higginsville Central,
underpinned by a strong commitment to greenfield exploration
targeting significant new discoveries across the 1800km2
property. The latter is demonstrated by the recent expansion of
drilling activities on the underexplored Lake Cowan area based on
targets identified through regional gravity/aeromagnetic surveys.
2021 will also see a renewed focus on resource definition and
exploration drilling at Spargos Reward ahead of initial mining by
mid year.
Beta Hunt
Gold
Beta Hunt Gold Mineral Reserves as at September 30, 2020
Sept-2020
Mineral Reserve
|
Proven
|
Probable
|
Proven &
Probable
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Western
Flanks
|
245
|
2.4
|
19
|
4,411
|
2.7
|
381
|
4,657
|
2.7
|
400
|
A Zone
|
84
|
2.5
|
7
|
1,039
|
2.3
|
75
|
1,123
|
2.3
|
82
|
Total
|
329
|
2.4
|
25
|
5,451
|
2.6
|
456
|
5,780
|
2.6
|
482
|
Beta Hunt Gold Mineral Resources as at September 30, 2020
Sept-2020
Mineral Resource
|
Measured
|
Indicated
|
Measured
& Indicated
|
Inferred
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Western
Flanks
|
451
|
2.4
|
35
|
8,816
|
2.8
|
800
|
9,267
|
2.8
|
835
|
4,133
|
2.7
|
360
|
A Zone
|
180
|
2.4
|
14
|
2,553
|
2.5
|
206
|
2,733
|
2.5
|
220
|
2,013
|
2.7
|
177
|
Total
|
630
|
2.4
|
49
|
11,369
|
2.8
|
1,006
|
11,999
|
2.7
|
1,055
|
6,146
|
2.7
|
537
|
Gold Mineral Reserves at Beta Hunt increased by 176,000 ounces
from the November 1, 2019 Mineral
Reserve estimate, an increase of 57%.
Gold Mineral Resources at Beta Hunt continued to grow through a
well supported and targeted drilling program. Measured and
Indicated Mineral Resources increased by 111,000 ounces, or 12%
compared to the 2019 Measured and Indicated Mineral Resource
estimate.
As with the 2019 estimate, it is important to note that high
grade coarse gold discoveries at Beta Hunt associated with the
shear zone / Lunnon Sediment intersection horizon, such as the
Father's Day Vein are not represented in the resource model due to
the extreme nuggety nature of this type of mineralization.
During 2020, exploration and resource definition activities at
Beta Hunt were focused on infill and extensional drilling of the A
Zone and Western Flanks. Two new discoveries were announced on
September 8 and September 10: a new footwall zone in the main
Western Flanks shear and the new high grade Larkin Zone discovered
south of the Alpha Isla Fault. The Larkin Zone is similar in style
to the A Zone and Western Flanks deposits north of the Alpha Island
Fault and is interpreted as the southern fault off-set extension of
the Western Flanks. This newly discovered zone requires further
drilling before a resource estimate can be completed and is
expected to be included in the 2021 update.
For 2021, resource definition drilling at Beta Hunt will
prioritize the Larkin Zone as well as continue to extend and
upgrade the Western Flanks and A Zone resources building on results
from the 2020 program. Exploration drilling at Beta Hunt will test
the along-strike continuity of the A Zone north and up-plunge of
the existing resource, and the along-strike continuity of the
Fletcher Zone, which is interpreted as a structural analogue to
Western Flanks.
Nickel
Beta Hunt Nickel Mineral Resources as at September 30, 2020
Sept-2020
Mineral Resource
|
Measured
|
Indicated
|
Measured
& Indicated
|
Inferred
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Beta
|
-
|
-
|
-
|
286
|
2.6%
|
7,480
|
286
|
2.6%
|
7,480
|
216
|
2.7%
|
5,830
|
East Alpha
|
-
|
-
|
-
|
276
|
3.1%
|
8,620
|
276
|
3.1%
|
8,620
|
98
|
2.9%
|
2,850
|
Total
|
-
|
-
|
-
|
561
|
2.9%
|
16,100
|
561
|
2.9%
|
16,100
|
314
|
2.8%
|
8,680
|
2020 marked the re-invigoration of the nickel by-product
opportunity at Beta Hunt. After a four-year pause in nickel focused
drilling, a targeted and well-planned exploration drilling program
successfully discovered and defined the 30C Nickel Trough located
between the two historical work areas of Beta and Beta West. The
30C trough is the first new nickel discovery at Beta Hunt in 13
years (see Karora news release dated September 10, 2020). Although only partially
drilled out, this new discovery forms part of the current nickel
Mineral Resource.
Technical Report
The Consolidated Mineral Resource and Reserve estimate will be
detailed in a technical report prepared in accordance with NI
43-101 to be filed under the Corporation's SEDAR profile at
sedar.com within 45 days of the date of this news release.
Compliance Statement (JORC 2012 and NI 43-101)
Shane McLeay is a mining engineer
and a Fellow of the AusIMM. Mr McLeay is an employee of Entech Pty
Ltd of Perth, Western Australia, who were employed by
Karora to undertake the Gold Mineral Reserve estimate for Beta
Hunt. Mr McLeay has sufficient experience that is relevant to the
style of mineralization and type of deposit under consideration and
to the activity being undertaken to qualify as a Competent Person
as defined in the JORC Code, 2012 Edition, and fulfils the
requirements to be a "Qualified Person" for the purposes of NI
43-101. Mr McLeay has reviewed and approved the disclosure of the
scientific and technical information for the Beta Hunt Gold Mineral
Reserves included in this news release.
Anton von Wielligh is a mining engineer and a Fellow of the
AusIMM. Mr von Wielligh is an
employee of ABGM Pty Ltd of Perth, Western Australia, who
were employed by Karora to undertake the Gold Mineral Reserve
estimate for Higginsville (Central & Greater, excluding Mt
Henry). Mr von Wielligh has
sufficient experience that is relevant to the style of
mineralization and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as
defined in the JORC Code, 2012 Edition, and fulfils the
requirements to be a "Qualified Person" for the purposes of NI
43-101. Mr von Wielligh has reviewed
and approved the disclosure of the scientific and technical
information for the Higginsville (excluding Mt Henry) Gold Mineral
Reserves included in this news release.
Ross Cheyne is a mining engineer
and a Fellow of the AusIMM. Mr Cheyne is an employee and Director
of Orelogy Mine Consulting of Perth, Western Australia,
who were employed by Karora to undertake the Gold Mineral Reserve
estimate for the Mt Henry Project. Mr Cheyne has sufficient
experience that is relevant to the style of mineralization and type
of deposit under consideration and to the activity being undertaken
to qualify as a Competent Person as defined in the JORC Code, 2012
Edition, and fulfils the requirements to be a "Qualified Person"
for the purposes of NI 43-101. Mr Cheyne has reviewed and approved
the disclosure of the scientific and technical information for the
Mt Henry Gold Mineral Reserves included in this news release. The
Mt Henry Gold Mineral Reserve is part of the Higginsville Greater
Mineral Reserve estimate.
Mr. Stephen Devlin is Group Geologist – Exploration &
Growth for Karora, a full time employee of Karora and a Fellow of
the AusIMM. Mr Devlin has
sufficient experience that is relevant to the style of
mineralization and type of deposit under consideration and to the
activity being undertaken to qualify as a Competent Person as
defined in the JORC Code, 2012 Edition, and fulfils the
requirements to be a "Qualified Person" for the purposes of NI
43-101. Mr Devlin has reviewed and
approved the disclosure of the scientific and technical information
for the Beta Hunt and Higginsville Gold Mineral Resource and the
Beta Hunt Nickel Mineral Resource included in this news
release.
Mr. Ian Glacken is a geologist and geostatistician and a
Fellow of the AusIMM. Mr Glacken is an employee of Optiro Pty Ltd,
of Perth, Western Australia, who were employed by Karora
to undertake the Gold Mineral Resource estimate for the Mt Henry
Project. Mr Glacken has sufficient experience that is relevant to
the style of mineralization and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent
Person as defined in the JORC Code, 2012 Edition, and fulfils the
requirements to be a "Qualified Person" for the purposes of NI
43-101. Mr Glacken has reviewed and approved the disclosure of the
scientific and technical information for the Mt Henry Gold Mineral
Resource in this news release. The Mt Henry Gold Mineral Resource
is part of the Higginsville Greater Mineral Resource estimate.
The "JORC Code" means the Australasian Code for Reporting of
Mineral Resources and Ore Reserves prepared by the Joint Ore
Reserves Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Mineral
Council of Australia. There are no material differences
between the definitions of Mineral Resources under the applicable
definitions adopted by the Canadian Institute of Mining, Metallurgy
and Petroleum (the "CIM Definition Standards") and the
corresponding equivalent definitions in the JORC Code for Mineral
Resources.
Detailed Footnotes relating to Mineral Resource Estimates as
at September 30, 2020
(1)
|
Mineral Resources
that are not Mineral Reserves do not have demonstrated economic
viability. There is no certainty that all or any part of the
Mineral Resources estimated will be converted into Mineral
Reserves.
|
(2)
|
The Measured and
Indicated Mineral Resources are inclusive of those Mineral
Resources modified to produce Mineral Reserves.
|
(3)
|
The Mineral Resource
estimates include Inferred Mineral Resources that are normally
considered too speculative geologically to have economic
considerations applied to them that would enable them to be
categorized as Mineral Reserves. There is also no certainty that
Inferred Mineral Resources will be converted to Measured and
Indicated categories through further drilling, or into Mineral
Reserves once economic considerations are applied.
|
(4)
|
The Gold Mineral
Resources are estimated using a long term gold price of US$1,600/oz
with a US:AUD exchange rate of 0.70.
|
(5)
|
Gold Mineral
Resources were estimated using variable cut-off grades taking into
account variable operational costs: underground - 1.3 g/t; open
pits, 0.4 g/t to 0.5 g/t.
|
(6)
|
To best represent
"reasonable prospects of eventual economic extraction" the mineral
resource for open pits has been reported within an optimized pit
shells at A$2,285 (US$1,600) and, for underground resources, areas
considered sterilized by historical mining are depleted from the
Mineral Resource.
|
(7)
|
The Nickel Mineral
Resource is reported above a 1% Ni cut-off grade.
|
(8)
|
Mineral Resource
tonnage and contained metal have been rounded to reflect the
accuracy of the estimate, and numbers may not add due to
rounding.
|
Detailed Footnotes relating to Mineral Reserve Estimates as
at September 30, 2020
(1)
|
The Gold Mineral
Reserve are estimated using a long term gold price of US$1,400/oz
with a US:AUD exchange rate of 0.70.
|
(2)
|
Cut-off grades for
open-pit mineral reserves vary from 0.50g/t to 0.85g/t . The
cut-off grade takes into account dilution, mine recovery and
operating mining, processing/haulage, sustaining capital and
G&A costs. Dilution and recovery factors varied by
deposit.
|
(3)
|
At Beta Hunt,
underground mineral reserves are reported at a 1.6g/t incremental
cut-off grade. At Higginsville, underground mineral reserves
cut-off grades vary between 1.6g/t (modified and diluted grade) to
2g/t (modified/diluted grade). The cut-off grade takes into account
Operating Mining, Processing/Haulage and G&A costs, excluding
capital.
|
(4)
|
The Mineral Reserve
is depleted for all mining to September 30, 2020.
|
(5)
|
Mineral Reserve
tonnage and contained metal have been rounded to reflect the
accuracy of the estimate, and numbers may not add due to
rounding.
|
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
gold Mineral Resource and Reserve and prospective land package
totaling approximately 1,800 square kilometers. The Company also
owns the high grade Spargos Reward project which is anticipated to
begin mining in 2021. 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 timing for
the completion of technical studies, 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.