Karora will host a call/webcast on March 19, 2021 at 10:00
a.m. (Eastern Time) to discuss the 2020 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, March 19, 2021 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Corporation") is pleased to
announce its financial results and review of activities for the
years ended December 31, 2020 and
2019. 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
audited consolidated financial statements for the years ended
December 31, 2020 and 2019.
Highlights
- Gold Production Exceeded Guidance: Consolidated gold
production of 99,249 ounces for 2020 from the Beta Hunt and
Higginsville mines in Western
Australia, exceeded the top end of the 2020 production
guidance of 90,000 to 95,000 ounces. Gold sales for 2020 totaled
98,656 ounces. For the fourth quarter of 2020, production was
25,637 ounces, the strongest quarter of production in 2020.
- Ongoing Cost Reductions: Consolidated
all-in-sustaining-cost ("AISC")1 was US$912 per ounce for the fourth quarter of 2020,
an improvement of 13% over the third quarter of 2020 and a record
low since acquisition of the Higginsville mill in 2019.
Consolidated AISC for 2020 was US$1,026 per ounce, which beat 2020 guidance of
US$1,050 to US$1,200 per ounce, and was 11% lower than
2019.
- 2021 Production and Cost Guidance: Consolidated
production and cost guidance for Karora's Australian operations
(Beta Hunt and HGO) of 105,000 to 115,000 ounces of gold at an
average AISC1 of US$985 to
US$1,085 per ounce. Consolidated HGO,
Beta Hunt and Spargos drilling and exploration expenditures for the
full year 2021 are targeted to be approximately A$20 million.
- Record Earnings: Net earnings of $42.9 million for the fourth quarter of 2020 and
$88.1 million for the full year 2020.
Net earnings were $0.30 per share and
$0.63 per share, for the fourth
quarter and 2020, respectively. Net earnings for full year 2020 was
positively impacted by an after-tax impairment reversal of
property, plant and equipment of $25.3
million.
- Record Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization ("EBITDA")1: Adjusted
EBITDA was $33.9 million for the
fourth quarter and $89.8 million for
the full year ($0.23 per share and
$0.64 per share, respectively).
- Strengthened Cash Position and Balance Sheet: Karora
ended 2020 with a strong cash position of $79.7 million, net of $4.0
million in debt repayments and $8.9
million paid into legacy gold price hedges in the first half
of 2020. Working capital was $56.8
million as of December 31,
2020, an improvement of $30.3
million compared to December 31,
2019.
- Consolidated Gold Mineral Reserve and Gold Mineral
Resource: On December 16, 2020,
Karora announced a 334% increase in consolidated gold Proven and
Probable ("2P") Mineral Reserves to 1.33 million ounces (23,531 kt
@ 1.8 g/t) and a 167% increase in consolidated Measured and
Indicated ("M&I") gold Mineral Resources to 2.52 million ounces
(41,994 kt @ 1.9 g/t) for its Beta Hunt and Higginsville operations
in Western Australia.
- Significant Royalty Reductions Leading to Increased
Production Potential and Lower Costs: During 2020, Karora
successfully negotiated the reduction or elimination of a number of
royalties on its Western Australian properties including the Morgan
Stanley NSR at Higginsville, Maverix royalty at Beta Hunt and
Ramelius royalty at Spargos Reward.
- Spargos Reward Acquisition: On August 7, 2020, Karora completed the acquisition
of the Spargos Reward Gold Project. Spargos is a high-grade open
pit gold project in Western
Australia that is expected to begin generating positive cash
flow for Karora in the second half of 2021. An updated resource
estimate is planned for release in the second quarter of 2021.
- Divestiture of Remaining Interest in Dumont Nickel Project
While Retaining Exposure to Eventual Project Sale: During 2020,
Karora sold its remaining 28% interest in Dumont to sharpen the
corporate focus on gold and materially reduce corporate overhead
associated with carrying the project. Karora immediately received
$10.7 million in cash and maintains
upside to receive up to an additional US$30
million upon a future sale or monetization of the asset by
its owner.
- Share Consolidation: Effective July 31, 2020, Karora completed a consolidation
of its outstanding common shares on the basis of one (1)
post-consolidation common share for every four and a half (4.5)
pre-consolidation common shares. Since consolidation, the average
daily traded dollar value of Karora's shares has more than doubled
to $4.6 million per day from
$2.2 million per day previously.
Paul Andre Huet, Chairman &
CEO, commented: "Karora delivered an exceptionally strong financial
and operating performance in 2020 with net earnings of $88.1 million and consolidated AISC1
of US$1,026 per ounce sold. The
fourth quarter was also exceptional with net earnings of
$42.9 million and consolidated
AISC1 of US$912 per ounce
sold, an improvement of US$132 per
ounce over the prior quarter and a record since the acquisition of
the Higginsville mill in mid-2019. Since the acquisition, we have
demonstrated a strong commitment to achieving cost reduction
targets and have now delivered six consecutive quarters of AISC
cost reductions, including by beating our target of achieving AISC
US$1,000 per ounce by the end of
2020.
After a strong year in 2020 with gold production that was just
shy of 100,000 ounces, beating the high end of our 90,000 to 95,000
ounce guidance range, we are poised for further growth in 2021.
This year, our production guidance range is 105,000 to 115,000
ounces, which represents an approximate 20% increase from 2020
guidance. Our AISC1 cost guidance represents an 8%
improvement over 2020 to a range of US$985 to US$1,085
per ounce sold. It is important to note that targeted 2021
production increases are weighted to the second half of the year.
We expect gold grades will increase over the course of the year as
we begin to mine higher grades at Higginsville Central and after
the anticipated start-up of mining at the high grade Spargos open
pit project in the second quarter.
With Karora's record cash balance of over $79 million at the end of 2020, we are in a very
strong position to deploy capital into our organic growth
initiatives for 2021 and beyond. Plans are well underway to expand
production capacity at our Higginsville mill in 2021 by
approximately 15%, or 550 tonnes per day, to 1.6 million tonnes per
annum.
We are off to a good start to 2021 with production tracking well
to our plans. Deployment of capital into earth works at Spargos in
preparation for mining by mid year is proceeding as planned, as are
our other initiatives in preparation for our planned Phase I mill
expansion. We are excited about our outlook beyond 2021 and we
expect to announce our multi-year growth plan and guidance to the
market during the second quarter."
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section 17 of Karora's MD&A dated March 19,
2021.
|
COVID-19 Protocols
In response to the global COVID-19 pandemic, Karora's protocols
and contingency plans have mitigated impacts of the pandemic. All
the Corporation's mines continued production during the year ended
December 31, 2020, as Karora's
ongoing response to the COVID-19 pandemic continued to maintain the
safety of its workforce and host communities while mitigating
operational impacts.
Results of Operations
Table 1 - Highlights of operational results for the periods
ended December 31, 2020 and
2019
|
|
|
|
Three months
ended,
|
Year
ended,
|
For the periods ended
December 31,
|
2020
|
2019
|
2020
|
2019
|
Gold Operations
(Consolidated)
|
|
|
|
|
Tonnes milled
(000s)
|
331
|
321
|
1,325
|
755
|
Recoveries
|
93%
|
90%
|
93%
|
91%
|
Gold milled, grade
(g/t Au)
|
2.52
|
2.60
|
2.33
|
2.65
|
Gold produced
(ounces)
|
25,637
|
26,874
|
99,249
|
64,277
|
Gold sold
(ounces)
|
27,933
|
28,359
|
98,656
|
65,225
|
Average realized price
(US $/oz sold)
|
$1,871
|
$1,451
|
$1,480
|
$1,368
|
Cash operating costs
(US $/oz sold)1
|
$843
|
$929
|
$925
|
$1,004
|
All-in sustaining cost
(AISC) (US $/oz sold)1
|
$912
|
$1,131
|
$1,026
|
$1,155
|
Gold (Beta Hunt
Mine)1
|
|
|
|
|
Tonnes milled
(000s)
|
182
|
133
|
745
|
475
|
Gold milled, grade
(g/t Au)
|
3.13
|
3.81
|
2.77
|
3.11
|
Gold
produced(ounces)
|
16,965
|
16,290
|
66,479
|
37,642
|
Gold sold
(ounces)
|
18,234
|
17,561
|
65,838
|
48,716
|
Cash operating cost
(US $/oz sold)1
|
$836
|
$773
|
$943
|
$958
|
Gold (HGO
Mine)
|
|
|
|
|
Tonnes milled
(000s)
|
149
|
188
|
580
|
280
|
Gold milled grade (g/t
Au)
|
1.95
|
1.75
|
1.90
|
1.85
|
Gold produced
(ounces)
|
8,672
|
10,584
|
32,770
|
16,635
|
Gold sold
(ounces)
|
9,698
|
10,798
|
32,818
|
16,509
|
Cash operating cost
(US $/oz sold)1
|
$858
|
$1,182
|
$886
|
$1,136
|
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section 17 of Karora's MD&A dated March 19,
2021.
|
Consolidated Operations
For the full year 2020, Higginsville Gold Operations milled
1,325 kt of material at an average grade of 2.33 g/t. Total gold
production was 99,249 ounces, 54% higher than 2019. Cash operating
costs for 2020 were US$925 per
ounce.
For the fourth quarter of 2020, consolidated gold production was
25,637 ounces, which was Korora's sixth consecutive quarter of
consistent gold production since acquiring the HGO mill in mid-2019
and the highest quarter of production during 2020.
The HGO mill feed was made up of approximately 55% material from
Beta Hunt underground and 45% material from HGO open
pits.
Tonnes milled for the fourth quarter of 2020 totalled 331 kt.
The consolidated gold milled grade in the fourth quarter was 2.52
g/t of gold, 3% lower than in the fourth quarter of 2019 due to a
higher level of Higginsville open pit material compared to
exclusive Beta Hunt material used during the fourth quarter of
2019. Milled grade during the fourth quarter of 2.52 g/t gold was
higher than the milled grade of 2.36 g/t in the third quarter of
2020, which was in part due to lower grade stockpiles being
utilized for blending feed during the third quarter. Production
during the fourth quarter of 2020 consisted of material from Beta
Hunt underground, the Baloo and Fairplay North open pits and a
small amount of stockpile material.
A total of 27,933 ounces of gold was sold during the fourth
quarter of 2020, representing a 2% decrease over the same period in
2019. The additional ounces sold in the fourth quarter of 2020
compared to gold produced was a carry over from the third quarter
of 2020 production.
Higginsville ("HGO")
During 2020, 580 kt of HGO material was milled to produce 32,770
ounces of gold at an average grade of 1.90 g/t. Cash costs per
ounce sold for the year were US$886
per ounce. During the fourth quarter of 2020, 149 kt of HGO
material was milled at a grade of 1.95 g/t for production of 8,672
ounces of gold. Cash costs per ounce sold for the quarter were
US$858 per ounce.
At Hidden Secret, mining of first mineralized material commenced
in the fourth quarter. Metallurgical recoveries were in line with
testwork at 92-93% and mining shapes and production was in line
with expectations. At Mousehollow, an open pit optimization has
been completed, and a mining proposal was submitted and approved by
the appropriate authorities. Karora expects these two pits to
eventually merge with the combined pit providing a stable base of
feed to the plant during 2021.
With mining focused primarily at Hidden Secret and Fairplay
North during the fourth quarter, minimal production occurred at
Baloo. Mine production from Baloo totaled 28,115 tonnes for the
quarter. A re-optimization of the pit was completed with additional
mineralization identified in the northern portion of the pit which
has driven the development of a new ramp from the south. Additional
exploration drilling was conducted during the fourth quarter to
test the eastern margins of the main mineralized zone. This
drilling resulted in the commencement of a cutback in the north
eastern corner of the pit with the remaining material mined during
early 2021. Karora continues to evaluate the underground potential
of Baloo.
As part of the HGO mining strategy, production from the Fairplay
North pit was staged to coincide with mining the remaining Baloo
open pit material to ensure optimal feed blend to the HGO mill. The
Fairplay North open pit was completed during the quarter in line
with our mining schedule and budget.
The high-grade Aquarius deposit is located less than two
kilometres from the HGO treatment plant. A near surface drilling
program was completed during the third quarter of 2020 with follow
up drilling in the fourth quarter. Based on the results of this
work, an initial mining study to examine the economic potential of
the project has been completed. The near surface drilling
identified a number of high grade supergene gold intersections,
including 43.5 g/t over 3.0 metres and 5.7 g/t over 6.0 metres (see
Karora news release dated November 9,
2020). A starter pit will be developed to access the higher
grade underground gold mineralization. Development of the Aquarius
starter pit could commence as early as mid 2021.
The existing Aquarius historical resource1,2 is 20 kt
@ 19.5 g/t (Measured and indicated) and 43 kt @ 4.2g/t (Inferred)
will be updated as part of the Corporation's 2021 resource
report.
¹
|
Karora Resources
profile at www.sedar.com technical report, February 6th,
2020.
|
²
|
Westgold 2018 Annual
Update of Mineral Resources & Ore Reserves dated October 2,
2018 and is 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
is not treating the historical estimates as current mineral
resources.
|
Spargos Reward Gold Project
An infill and extensional drilling program to convert historical
mineral resources to mineral reserves continued throughout the
fourth quarter and into early 2021. As announced in Karora's news
release dated March 1, 2021, all
drilling associated with the updated estimate have now been
received. Assay results from this work were delayed due to
laboratories in the region reaching full capacity with return of
assay results taking up to a month or more. These delays, along
with very strong exploration results announced on November 18, 2020 (29.8 g/t over 19 meters and
27.3 g/t over 15 meters) impacted the original targeted timeline
for completion of the Spargos resource in the fourth quarter. As
previously stated, the resource estimate is now expected in the in
the second quarter, in line with the expected commencement of
mining at Spargos. Initial open pit design, flora and fauna
surveys, waste characterization and infrastructure location have
all been completed and form part of the final mine plan to be
submitted for mining approval with the appropriate authorities.
Beta Hunt
During 2020, 745 kt of Beta Hunt material was milled, an
increase of 57% on 2019, to produce 66,479 ounces of gold at an
average grade of 2.77 g/t. Cash costs per ounce old for the year
were US$943 per ounce.
The increased production is a direct reflection of improved
mining techniques and a staged fleet replacement and upgrade
program, including the addition of a CAT R2900 underground loader
and two CAT AD60 trucks into the mining fleet. Two additional CAT
R2900 underground loaders and two CAT AD60 trucks are planned for
2021 which are required as part of the continued production ramp up
in 2021.
During the fourth quarter of 2020, 182 kt of material was milled
at an average grade of 3.13 g/t to produce 16,965 ounces of gold, a
4% increase from the fourth quarter of 2019. Milled grades were 18%
lower compared to the fourth quarter of 2019, but 14% higher than
the third quarter of 2020. The timing and planning of stope
production centres was the reason for the slight difference.
Nickel production at Beta Hunt is currently limited 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. Exploration
is also targeting two additional nickel targets with results
expected in the second quarter of 2021. A revised nickel production
strategy is currently being developed based on the updated nickel
Mineral Resource that was part of the recent Karora Resource and
Reserve statement dated as at September 30,
2020.
Significant 4Q20 Mineral Reserves and Resources
Update
On December 16, 2020, the
corporation announced a 334% increase in consolidated gold Proven
and Probable ("2P") Mineral Reserves to 1.33 million ounces and a
167% increase in consolidated Measured and Indicated
("M&I") gold Mineral Resources to 2.52 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 and does not include the high
grade Spargos Reward Project or Larkin gold discovery at the Beta
Hunt mine.
On February 3, 2021, the
Corporation filed a technical report for the Beta Hunt Mine and HGO
entitled "Technical Report Higginsville-Beta Hunt Operation,
Eastern Goldfields, Western
Australia". This report can be found on Karora's website at
www.karoraresources.com and under its profile at www.sedar.com.
Strong Cash Operating Costs and Decreased AISC
For the full year 2020, consolidated cash operating
costs1 and AISC1 were US$925 and US$1,026
per ounce sold, respectively (reductions of 8% and 11% compared to
2019). For the fourth quarter, consolidated cash operating
costs1 and AISC1 were US$843 (a 13% reduction compared to the third
quarter) and US$912 (an 19% reduction
compared to 2019) per ounce sold.
Outlook
On January 19, 2021, Karora
announced consolidated production guidance of between 105,000 -
115,000 ounces of gold at an AISC range 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.
The above guidance assumes no significant disruption in
operations as a result of the COVID-19 pandemic.
Exploration
Karora has identified multiple high priority exploration targets
for 2021 as part of its significantly expanded A$20 million exploration budget across its +1,900
km2 land package. The increase in the drilling and
exploration budget was driven by Karora's strong success in 2020 in
increasing consolidated Reserves and Resources. Exploration is
separated into brown fields drilling which is predominantly aimed
at upgrading and extending existing Mineral Resources and
greenfields exploration, which is targeting new +250k oz discoveries.
At Beta Hunt, 2021 drilling is targeting extending and upgrading
both the Western Flanks and A Zone Mineral Resources and producing
a maiden Mineral Resource for the Larkin Zone, with drilling for
the first half of 2021 focused on completing the Larkin Gold Zone
drill program. Nickel drilling is planned to commence in the second
quarter of 2021 and will focus on extending and upgrading the 30C
nickel trough discovered last year as well as extending the
previously mined 40C trough area.
At Higginsville, exploration is focused on completing the
scout lake aircore drilling program over the Lake Cowan dry salt
lake area and following through with reverse circulation and
diamond drill programs to further test geochemical anomalies
generated from the results of the reconnaissance drilling. The
program is designed to test for anomalous gold (+0.02g/t), however
Karora has already successfully identified several strong targets
which exceeded expectations, including 3.65 g/t gold over 16 metres
within an intersection of 1.35 g/t over 50 metres (see Karora news
release, February 8, 2021).
Additional advanced targets for exploration during 2021 include
the Spargos Project area, Mt Henry and the Sleuth trend which
incorporates the Baloo deposit and the Nanook and Monsoon
prospects. 2021 Resource Definition drilling will initially focus
on testing targets within Higginsville Central, which includes the
Aquarius, Two Boys and Trident deposits. In addition, further
drilling is planned at Spargos to build upon the results from the
Stage 1 drill program.
Financial Highlights
Table 2 - Highlights of Fourth Quarter and Full Year
Financial Results
(in thousands of dollars except per share amounts)
|
|
|
For the periods
ended December 31, 2020
|
Three months
ended,
|
Year
ended,
|
2020
|
2019
|
2020
|
2019
|
Revenue
|
69,349
|
56,832
|
239,136
|
128,036
|
Production and
processing costs
|
27,787
|
31,624
|
108,880
|
78,836
|
Earnings (loss)
before income taxes1
|
26,799
|
9,766
|
95,133
|
(7,716)
|
Net earnings
(loss)1
|
42,906
|
10,465
|
88,130
|
(6,942)
|
Net earnings (loss)
per share - basic
|
0.30
|
0.08
|
0.63
|
(0.06)
|
Net earnings (loss)
per share - diluted
|
0.28
|
0.08
|
0.61
|
(0.06)
|
Adjusted
EBITDA2,3
|
33,885
|
16,109
|
89,786
|
13,351
|
Adjusted EBITDA per
share - basic2,3
|
0.23
|
0.12
|
0.64
|
0.11
|
Cash flow provided by
(used in) operating activities
|
37,007
|
21,121
|
91,132
|
15,179
|
Cash investment in
property, plant and equipment and mineral property
interests
|
(19,985)
|
(7,776)
|
(46,305)
|
(25,391)
|
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 March 19,
2021.
|
3.
|
Earnings before
interest, taxes, depreciation, and amortization
("EBITDA").
|
Net earnings for the year ended December
31, 2020 were a record $88.1
million compared to a net loss of $6.9 million for the comparable period in 2019.
Net earnings were positively impacted by the profits associated
with increased revenues of $111.1
million and an impairment reversal of property, plant and
equipment which resulted in profit of $36.1
million which are discussed below. Net earnings for the
fourth quarter were $42.9 million, up
$8.0 million compared to the prior
quarter and $32.4 million higher than
the fourth quarter of 2019.
During the year ended December 31,
2020, an impairment reversal test concluded that the
carrying value of the Beta Hunt Mine cash-generating unit assets
was lower than the fair value less costs of disposal which resulted
in a full reversal of the original impairment loss recorded on
December 31, 2017 after reflecting
the amount of depreciation that would have been recorded had the
assets not been impaired.
Adjusted EBITDA for the year ended December 31, 2020 was a record $89.8 million compared to $13.4 million in 2019. Record adjusted EBITDA for
the fourth quarter of $33.9 million
was up 47% over the third quarter (which was the previous record)
and by $17.8 million over the
corresponding 2019 period).
Table 3 - Highlights of Karora's Financial Position
(in thousands of
dollars):
|
|
|
For the period
ended
|
December 31,
2020
|
December 31,
2019
|
Cash and cash
equivalents
|
79,695
|
34,656
|
Working
capital1
|
56,835
|
26,506
|
PP&E &
MPI
|
239,044
|
98,955
|
Total
assets
|
350,099
|
177,777
|
Total
liabilities
|
142,895
|
85,495
|
Shareholders'
equity
|
207,204
|
92,282
|
1
|
Working capital is a
measure of current assets (including cash and cash equivalents)
less current liabilities.
|
Karora finished 2020 with a strong cash position of $79.7 million, an increase of $45.0 million compared to December 31, 2019. As at December 31, 2020, Karora had a working capital
surplus of $56.8 million.
For a complete discussion of financial results, please refer to
Karora's MD&A and audited consolidated financial
statements for the years ended December
31, 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=1436311&tp_key=9b6c8a7a82)
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 March 19, 2021,
through the following dial in numbers:
North American callers please dial: 1-855-859-2056; Pass Code:
9868548
Local and international callers please dial: 416-849-0833; Pass
Code: 9868548
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
gold Mineral Resource and Reserve and prospective land package
totaling approximately 1,900 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 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, the commencement of
mining at the Spargos Gold Project and the completion of the
resource estimate.
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.