Summary
- Karora achieves record gold production of 99,249 ounces
and gold sales of 98,646 ounces in 2020
- Year-end consolidated cash balance of C$79.5 million, an 18% increase vs. the third
quarter, net of a $2
million early debt repayment during the fourth
quarter.
- Consolidated 2021 Guidance:
-
- Production of 105,000-115,000 ounces, an
increase of over 20% when compared to 2020 production
guidance.
- All-in-sustaining-cost (AISC)1 of US$985-$1,085 per
ounce, an 8% reduction compared to 2020 cost guidance
(at mid-point) following a robust year of significant cost
reductions across Karora's Australian operations and corporate
offices.
- A 25% increase in drilling and exploration expenditures
for 2021:
-
- Drilling and exploration budget of A$20 million to be allocated across HGO, Beta
Hunt and Spargos.
TORONTO, Jan. 19, 2021 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Corporation") is pleased to announce
consolidated gold production of 99,249 ounces for 2020 from its
Beta Hunt and Higginsville mines in Western Australia, exceeding the mid-point of
2020 production guidance of 90,000 to 95,000 ounces by 7%. Gold
sales for the 2020 totaled 98,646 ounces. For the fourth quarter of
2020, production was 25,637 ounces, the strongest quarter of
production in 2020.
Karora's consolidated cash balance increased to $79.5 million as at December 31, 2020, an 18% increase from
$67.3 million on September 30, 2020. The increase in cash was net
of a $2 million early payment to
reduce the Corporation's debt.
Karora is also pleased to announce that for the full year 2021,
the Company is targeting consolidated production of between 105,000
to 115,000 ounces of gold at an average all-in-sustaining-cost
(AISC)1 of US$985 to
US$1,085 per ounce.
The high-end of 2021 production guidance represents a 21%
increase over the high-end of 2020 guidance (19% mid-point to
mid-point). The mid-point of 2021 cost guidance represents an 8%
reduction when compared to the mid-point of 2020 guidance. The
reduced AISC guidance reflects Karora's continued focus on cost
reduction initiatives following a very successful year of reducing
AISC during 2020.
Consolidated HGO, Beta Hunt and Spargos drilling and exploration
expenditures for the full year 2021 are targeted to be
approximately A$20 million, double
the initial 2020 guidance and 33% higher than revised 2020 drilling
and exploration guidance (see Korora news release dated
September 10, 2020). The budget will
be allocated towards further resource definition drilling and
exploration across all three properties. The increase in the
drilling and exploration budget was driven by Karora's success in
2020 of increasing consolidated Proven and Probable Mineral
Reserves by 334% to 1.33 million gold ounces and Measured and
Indicated Resources by 167% to 2.52 million ounces (see Karora news
release dated December 16, 2020 for
further details). Karora has a number of high-quality exploration
targets slated for exploration drilling in 2021 across its +1,800
km2 land package.
Paul Andre Huet, Chairman &
CEO, commented: "I am extremely pleased to report full year 2020
production of just under 100,000 ounces, beating the top end of our
2020 production guidance by a substantial margin in our first full
year of production with our Higginsville mill. I am also excited
that we ended 2020 on a very strong note, producing 25,637
ounces which was our best quarterly result in 2020.
During the fourth quarter we added over $12 million to our cash position, net of a
$2 million early debt repayment,
bringing our total to $79.5 million
in cash as of December 31, 2020.
For 2021, we are guiding to gold production approximately 20%
higher than 2020 guidance and for AISC1 to be
approximately 8% lower. We expect gold grades will increase over
the course of the year as we begin to move into higher grade areas
at Higginsville Central and with the anticipated start-up of mining
at the high grade Spargos project in the second quarter. As a
result, the increase in 2021 gold production and grades is expected
to be weighted towards the second half of the year.
During 2020, Karora focused on stabilizing both operations and
building a reliable, long term production base. With a successful
base established, we are now poised for significant production
growth and look forward to rolling out our organic growth plan in
the coming months. 2020 was certainly a transformational year, but
we believe we are only just scratching the surface of our growth
potential and I am looking forward to an even better year for
Karora in 2021."
- 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.
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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 and the timing for production at 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.
SOURCE Karora Resources Inc.