TORONTO, April 15, 2021 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Company") is pleased to announce
consolidated gold production of 24,694 ounces for the first quarter
of 2021 from its Beta Hunt and Higginsville mines in Western Australia. Gold sales for the quarter
were a very strong 25,547 ounces.
First quarter gold production is in line with consolidated 2021
production guidance of 105,000 to 115,000 ounces. As previously
reported (see Karora news release dated January 19, 2021), Karora expects gold grades to
increase over the course of 2021 as higher grade production from
new mining areas in the Higginsville Central area come online and
with the anticipated start-up of mining at the high grade Spargos
open pit project by mid-year. As a result, 2021 gold production and
grades will be higher in the second half of the year compared to
the first half. For the full year 2021, all-in-sustaining-cost
(AISC)1 guidance of between US$985 to US$1,085
per ounce is maintained.
Karora's consolidated cash balance as at March 31, 2021 was $76.7
million, a slight decrease from $79.7
million on December 31, 2020
due to planned investment into Karora's assets as part of 2021's
capital program as well as the second, and final, US$2.5 million (A$3.2
million) cash payment to Maverix Metals as part of the Beta
Hunt royalty buy back agreement announced on June 30, 2020.
Planned capital investments in the first quarter included
capital development related to preparing new mining areas at
Higginsville Central as well as ongoing phased mining fleet
replacements and additions which had a significant positive impact
on productivity and mining rates during 2020. The Company also
continued with its aggressive A$20
million drilling and exploration program across all three
operations.
Paul Andre Huet, Chairman &
CEO, commented: "Karora has delivered another strong quarter of
production across its operations as we prepare for the next level
of growth to be announced in the coming months. First quarter
production is directly on track with our budget and in line with
our previous six quarters of consistent production of approximately
25,000 ounces per quarter, despite planned open pit sequencing
mining slightly lower grades during the quarter. As previously
stated, we expect gold grades to increase over the course of 2021
as we bring on higher grade mining areas at Higginsville Central
and Spargos, resulting in our 2021 production growth, when compared
to 2020 production, to be weighted to the second half of the
year.
During the first quarter we invested heavily in preparing new,
higher grade mining areas at Higginsville Central and Spargos,
along with increased resource definition, grade control and
exploration drilling to set us up for a very successful year. We
also made investments during the first quarter to improve
productivity with substantial mining fleet replacements and
additions at Beta Hunt and Higginsville.
We are also very pleased to have completed and closed the
royalty transaction with Maverix Metals, having made our second and
final cash payment of US$2.5 million
during the first quarter. The reduction of royalties at Beta Hunt
has not only improved our mining cost profile, but has truly opened
the mine up to the tremendous series of exploration discoveries we
have delivered since September. These include the very exciting and
higher grade Larkin Zone, the
significant extension to Western Flanks North, the 30C high grade
Nickel trough as well as the recently announced very high grade
Gamma/50C Nickel zone. With these new discoveries, we are executing
on our plan to continue to grow Beta Hunt into a very large
operation.
I continue to believe we are only just scratching the surface of
our growth potential and I am looking forward to strong results for
the balance in 2021 as well as announcing Karora's multi-year
growth plan later in the second quarter."
1.
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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.
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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
Mineral gold 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 and cost 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.