Highlights:
- Three-year production and cost guidance doubling
consolidated gold production to 185,000 – 205,000 ounces by 2024 at
AISC of US$885-US$985 per ounce.
- Significant expansion of Karora's primary asset, Beta Hunt,
will see underground production increased to 2.0 Mtpa by 2024
through the addition of a second decline.
- Phase II expansion of Higginsville processing plant,
increasing throughput to 2.5 Mtpa by 2024. Phase I expansion to 1.6
Mtpa from 1.4 Mtpa currently underway.
- Growth plan is organically funded through operating cash
flows and current cash balance (end of Q1 2021 - C$76.7 million).
- Multiple upside projects identified that are expected to
enhance growth profile beyond the current plan. These include the
high grade Larkin Zone and high grade 30C & 50C nickel troughs
at Beta Hunt as well as district scale potential at
Higginsville.
- New, higher confidence Spargos Mineral Resource estimate,
focused on near-term open pit mining. Measured and Indicated
Mineral Resource estimate of 1.08 Mt at 3.0 g/t (105,000 ounces)
and 0.4 Mt at 3.2 g/t (45,000 ounces) of Inferred Mineral
Resource.
- Spargos deposit remains open at depth, both along strike and
down-dip with significant exploration potential identified by a
recent Karora geological review.
- Potential for valuation re-rating as Karora transitions into
the next tier of gold producers with increased scale, margins and
potential investor interest.
TORONTO, June 28, 2021 /CNW/ - Karora Resources Inc. (TSX:
KRR) ("Karora" or the "Corporation") is pleased to announce its
multi-year consolidated growth plan to double gold production from
99,249 ounces in 2020 to a range of 185,000 – 205,000 ounces in
2024 at an All-in Sustaining Cost ("AISC") of US$885 – US$985 per
ounce.
As detailed in this news release, the growth plan will be driven
by an expansion of Beta Hunt underground mine production to 2.0
Mtpa by 2024, from 0.8 Mtpa recorded in 2020. Increased production
from Beta Hunt will be complemented by the Spargos Reward and
Higginsville Central areas, with Spargos expected to begin mining
ore in Q3 2021. This tonnage will be processed by the Higginsville
mill, which will be expanded to a capacity of 2.5Mtpa by 2024
(Phase II), an increase from the current Phase I expansion to
1.6Mtpa from 1.4Mtpa that is currently underway.
Table 1 – Consolidated Multi-Year Guidance to 2024
Production &
Costs
|
|
2021
|
2022
|
2023
|
2024
|
Gold
Production
|
Koz
|
105 - 115
|
120 – 140
|
150 – 170
|
185 - 205
|
All-in sustaining
costs
|
US$/oz
|
985 -
1,085
|
900 – 990
|
890 – 990
|
885 - 985
|
Capital
Investments
|
Sustaining
Capital
|
A$ (M)
|
5 - 6
|
8 – 13
|
11 – 16
|
18 - 23
|
Growth
Capital
|
A$ (M)
|
40 - 46
|
45 – 55
|
47 – 57
|
30 - 40
|
Exploration &
Resource
Development
|
A$ (M)
|
20 - 23
|
21 – 24
|
22 – 25
|
20 –
23
|
- 2021 Guidance, which was announced in January 2021 (see Karora news release dated
January 19, 2021), is
unchanged. This production guidance through 2024 is based on
the 2020 year-end Mineral Reserves and Mineral Resources announced
on December 16, 2020.
- The Capital Investment amounts listed above, which the
Corporation expects to fund with cash on hand and cashflow from
operations, includes the capital required during the applicable
periods to expand the capacity of the Higginsville mill to 2.5
Mtpa. See below for further detail regarding this expansion.
- The material assumptions associated with the expansion of Beta
Hunt mining production rate to 2.0 Mtpa in 2024 include the
addition of a second ramp decline system driven parallel to the ore
body, ventilation and other infrastructure that is required to
support these areas, and an expanded trucking fleet. The Capital
Investment amounts listed above, which the Corporation expects to
fund with cash on hand and cashflow from operations, include the
capital required during the applicable periods to fund this
production expansion. See below for further detail regarding this
expansion.
- The Corporation's guidance assumes targeted mining rates and
costs, availability of personnel, contractors, equipment and
supplies, the receipt on a timely basis of required permits and
licenses, cash availability for capital investments from cash
balances, cash flow from operations, or from a third-party debt
financing source on terms acceptable to the Corporation, no
significant events which impact operations, such as COVID-19,
nickel price of US$16,000 per tonne,
as well as an A$ to US$ exchange rate of 0.78 and A$ to C$ exchange
rate of 0.91. Assumptions used for the purposes of guidance may
prove to be incorrect and actual results may differ from those
anticipated. See below "Cautionary Statement Concerning
Forward-Looking Statements".
- Exploration expenditures include capital expenditures related
to infill drilling for Mineral Resource conversion, capital
expenditures for extension drilling outside of existing Mineral
Resources and expensed exploration. Exploration expenditures also
includes capital expenditures for the development of exploration
drifts.
- Capital expenditures exclude capitalized depreciation.
- AISC guidance includes general and administrative costs and
excludes share-based payment expense.
- See "Non-IFRS Measures" set out at the end of this news
release.
- See "Risk Factors" described on page 29 of the Corporation's
MD&A dated March 19, 2021.
Figure 1: 2021 to 2024 Growth and Cost Profile
Paul Huet, Chairman and CEO of
Karora commented, "I am extremely pleased to announce our organic
growth plan, which includes a three-year ranged
guidance profile that is based on Karora's 2020 year-end
Mineral Reserves and Mineral Resources announced on December 16, 2020.
Our new growth plan doubles our ounce output, reduces costs and
increases margins over three years. We are in a very strong
position to deliver this plan funded from our current cash balance
of almost $80 million and cash flow
from operations during this period. Based on this robust plan, we
also intend to refinance our existing $30
million debt facility to provide us with further flexibility
over the coming years along with materially reducing our interest
costs.
This growth plan to increase gold production from 99,249 ounces
in 2020 to a range of 185,000 to 205,000 ounces in 2024 is,
importantly, driven via the expansion of our primary asset - Beta
Hunt. Over the past two years, we have optimized, improved and
executed extremely well across our operations, with Beta Hunt
leading these efforts. During this period, we have delivered seven
consecutive quarters of reliable and robust production despite
operational, weather and pandemic-related challenges. I am
extremely proud of our operational accomplishments during this
period, and as an operator at heart myself, I am very confident in
our ability to deliver on this growth plan.
In addition to the Beta Hunt underground expansion and
Higginsville mill expansion to 2.5Mtpa, we have several exciting
projects that we expect will provide upside beyond the growth plan
we are announcing today. If we are able to unlock the value in
these projects, and I am confident we will, they will significantly
enhance what is an already impressive path forward for Karora.
These additional opportunities include our plan to deliver a
maiden resource estimate of the Larkin Zone, which will form part
of our 2021 consolidated Mineral Resource and Mineral Reserve
update. Based on drilling results to date, Larkin has the potential
to increase grades above and beyond the current growth plan
numbers. Furthermore, the potential future by-product nickel
credits associated with the Beta Hunt 30C and high grade 50C nickel
trough discoveries provide further upside opportunity, the latter
having the potential to be higher grade than our current nickel
Measured and Indicated Mineral Resource of 561 kt at 2.9% for
16,100 tonnes of nickel. We now have an exploration team dedicated
to these high priority nickel areas at Beta Hunt. As we will
continue to drill these zones and receive assays, we will update
the market with developments.
On the subject of drilling, our 2021 program continues to
deliver on the untapped exploration potential across our land
package including Beta Hunt, Higginsville Central, Spargos and Lake
Cowan. To date in 2021 we have completed 57,968 metres of our
planned 68,500 metre exploration drilling program. In the first
half of the year, drilling at Beta Hunt was focused on resource
definition while drilling at Higginsville was more directed towards
greenfields exploration, the bulk of which is associated with the
Lake Cowan reconnaissance program. We are currently compiling and
analyzing these results ahead of targeting our next phase of drill
targets.
Lastly, I would like to acknowledge the very hard work of our
entire team required to deliver this growth plan on time and on
budget despite numerous external challenges. I know they are as
excited as I am to get to work on executing this plan. Together we
are confident it's going to be an exciting journey ahead."
Higginsville Mill Expansion
Central to Karora's growth plan is the expansion of the
Higginsville mill as part of the Corporation's hub and spoke model.
The Phase I expansion of the mill from 1.4 million tonnes per annum
(Mtpa) to 1.6 Mtpa is well under way, for relatively modest capital
expenditure of approximately A$3
million.
The Phase II mill expansion is expected to reach a throughput
rate of 2.5 Mtpa by 2024 at a total capital expenditure of
A$50 million, as noted in our
existing technical report dated January 29,
2021. It is expected that this A$50
million spend will be incurred from mid-2022 through
mid-2023.
The key areas included in the Phase II mill expansion are the
installation of a new semi-autogenous grinding (SAG) mill and motor
and the associated extension of the conveyor system. The existing
quaternary crusher will be repurposed as a pebble crusher in the
SAG mill circuit while the existing ball mill, recently upgraded
gravity circuit and elution columns will be reused in the expanded
plant. Additional trash screens for filtering wet media, carbon in
leach (CIL) tanks and a new thickener will be installed on the back
end of the mill.
Once completed, the mill expansion would provide optionality to
blend Paleo channel material with material from the Corporation's
other operating mines.
Beta Hunt Mine Expansion
The Beta Hunt Mine expansion represents the backbone of Karora's
growth plan and is expected to approximately double the production
capacity of the mine from the current rate of approximately
75,000-85,000 tonnes per month (tpm) to 160,000 – 170,000 tpm by
the end of 2024.
Karora commissioned Hatch Ltd. to investigate materials handling
options for increased production rates at Beta Hunt. After
extensive review of each option, and Karora's significantly
improved mining and hauling efficiencies, the Corporation selected
the addition of a second decline and expanded trucking fleet to
increase mining throughput at Beta Hunt. The addition of a second
decline will best leverage the significant experience of the Beta
Hunt underground mining team which have delivered outstanding
operational improvements since the restart of operations in
2019.
The new decline will duplicate the current single access into
the mine intersecting the existing workings 240 vertical metres
below the surface. The decline is positioned adjacent to the
up plunge extensions of current mining zones which will allow for
gold mining operations concurrently with driving the decline – a
distinct advantage. Increased mine development rates and
expansion of the underground mining fleet will support the decline
construction along with primary ventilation upgrades.
Figure 2: Beta Hunt Mine – Oblique Long section looking
Northeast highlighting position of second decline
Note: Mineral
Resources as of September 30, 2020. For scale, Mineral Resources
shown cover a strike length of 2.5 kilometres.
|
Higginsville Central and Spargos Gold Project
The Higginsville Central "high grade core" and Spargos Gold
Project are expected to provide a stable source of mill feed
including a mix of feed from open pit and underground operations.
Both brownfields restarts and new projects including Two Boys,
Aquarius and Trident will complement the feed from the Spargos open
pit and underground.
Aquarius
Pre-production works for the Aquarius mine commenced in the
second quarter of 2021 with the final box cut, portal establishment
and commencement of decline development to occur in the third
quarter of 2021. The box cut has been positioned to provide most
economical and practical access to the underground ore blocks and
to intersect supergene ore close to the surface. These blocks will
be mined as the box cut advances and will help offset overall
development costs. Development of the decline will continue
throughout the third and fourth quarter with initial level
development ore expected late in the fourth quarter of 2021 and
stope production starting shortly thereafter. The Aquarius deposit
remains open along strike and at depth with follow up drilling to
be carried out from the lateral underground development which will
provide optimal drill bay locations.
Figure 3: Aquarius Mine box cut
Two Boys
Karora began mine re-entry works at Two Boys underground in the
second quarter of 2021 following dewatering of the historical
operations. Rehabilitation will continue throughout the third
quarter of 2021 in conjunction with development to access remnant
and new ore blocks. Initial conditions encountered at Two Boys have
met, and in many places exceeded expectations. A revised
development and stope production plan is currently being updated to
include recent face samples (5-10 g/t), surface drilling and
re-mapping of historic workings. Drilling is also underway into
surface mineralization adjacent to Two Boys which could extend into
the upper levels of Two Boys underground, previously not considered
in the mine plan.
Spargos Gold Project Mineral Resource
Karora is also pleased to provide its initial Spargos Mineral
Resource ahead of commencing mining in the third quarter. The new
Resource presents a 15% increase in ounces but also a higher
confidence basis from which to commence mining activities compared
to the historic Corona Resources Mineral Resource estimate (Corona
Resources news release "Resource Estimate Update for Spargos Reward
Project Eastern Goldfields Western Australia' dated on February 26, 2020"). The infill and resource
definition drilling efforts completed by Karora, totalling 13,377
metres, were focused on delineating the near-term open pit mining
opportunity for which initial pre- development activities have been
underway since the first quarter of 2021. As such, significant
step-out potential exists beyond the current estimate, particularly
at depth where down-plunge and down-dip extensions remain virtually
untested.
The initial Karora Spargos Mineral Resource includes the results
of 138 Resource Definition holes and 375 surface grade control
holes.
Table 2: Spargos Gold Deposit Mineral Resource Estimate as at
June 24, 2021
Mineral
Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Spargos
1.2.3.4.5
|
241
|
2.4
|
19
|
836
|
3.2
|
86
|
1,077
|
3.0
|
105
|
401
|
3.5
|
45
|
1.
|
Mineral Resources are
not Mineral Reserves and 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 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. Mineral resource
tonnage and contained metal have been rounded to reflect the
accuracy of the estimate, and numbers may not add due to
rounding
|
3.
|
Gold Mineral
Resources are reported using a 0.5 g/t Au cut-off grade above
300mRL, and 1.6g/t Below 300mRL
|
4.
|
Mineral Resources
described here are based on information compiled by Graham de la
Mare, Principal Resource Geologist for Karora Resources. Graham de
la Mare is an employee of KRR and is a Fellow of the Australian
Institute of Geoscientists (FAIG, 1056).
|
5.
|
This Mineral Resource
estimate may be materially affected by legal, political,
environmental and other risks.
|
6.
|
Mineral Resource
Estimate as of June 24, 2021.
|
An extensive geological review completed by Karora exposed how
little drill testing exists for underground mineralization below
the 300mRL (150 m below surface)
outside of the Mineral Resource. The northern margin is
constrained by just three historic holes (including two wedges).
These holes are considered to have missed the high grade plunging
shoot positions which remain open at depth down plunge. The
southern margin of the Mineral Resource is limited by a single
historic hole and is considered virtually untested.
The northern and southern strike extensions of the Spargos
Mineral Resource are also poorly tested by historic drilling and
represent a significant underground growth opportunity. As such,
the Resource remains open in both directions.
The next stage of exploration drilling will be focused on
extending high grade gold mineralization outside the margins of the
current Mineral Resource and at depth to further define the
potential for a high grade underground operation at Spargos. High
grade results announced in November
2020, including SPRC0026: 29.8 g/t over 19.0 metres,
including 99.5 g/t over 5.0 metres, SPRC0012: 27.3 g/t over 15.0
metres, including 168.0 g/t over 1.3 metres and SPRC0019: 8.0 g/t
over 19.0 metres, including 20.6 g/t over 2.0 metres (see Karora
news release dated November 18,
2020), highlight the potential for the discovery of
additional high grade shoots which have the potential to positively
impact future mined grades.
Figure 4: Longsection looking west showing Spargos Mineral
Resource represented by block model average grade across the width
of the lodes
Note: All
drilling (excluding surface grade control) is shown as pierce
points. Interpreted north plunging high grade shoots remain open at
depth
|
Potential to regionally grow the existing deposit outside of the
immediate extensions of the Mineral Resource has also been
identified. Interpretation completed by the Company's site-based
exploration team has targeted a mineralized position associated
with a porphyry controlled dilational target (pressure shadow) 1.5
kilometres south of the Spargos deposit. This target is associated
with historical, near surface downhole drill intersections
including 14.1 g/t over 2 metres from 5 metres (SRC013), 7.7 g/t
over 0.5 metres from 44 metres (SRB171) and 48.5 g/t over 1 metre
from 2 metres (SR0988) reported by Corona Resources Limited. A
qualified person of the Corporation has not completed sufficient
work to verify such historic drill results. However, the
Corporation believes that such drilling and analytical results were
completed to industry standard practices. The information provides
an indication of the exploration potential of the Spargos deposit
but may not be representative of expected results.
Figure 5: Aeromag image covering eastern margin of the
Spargos Project. Image shows interpreted position of prospective
shears and structural target 1.5km south of the Spargos Reward
deposit.
Further Exploration and Development Potential
Beta Hunt
Drilling on the Larkin trend was recently completed with
drilling totalling 47 holes for 9,362 metres. Assays remain pending
for the latest holes. Resource modelling on the Larkin Zone is
expected to commence in the third quarter, with an initial Larkin
Mineral Resource expect to be included in Karora's 2021
consolidated Mineral Resource and Mineral Reserve update. The 30C
Nickel Trough -– the first new nickel discovery at Beta Hunt in 13
years - sits approximately 5 to 10 metres above the Larkin Gold
Zone has returned some strong nickel grades such as 7.7% nickel
over 1.3 metres (BE30-009) and 8.6% nickel over 1.0 metre
(BE30-010) (See Karora news release dated September 10, 2020).
Drilling underground is active on four exploration targets – A
Zone North, Western Flanks North, Fletcher and the 50C Nickel
Trough (Figure 6). Three drill rigs are engaged to undertake the
planned drilling: one surface multipurpose RC/diamond rig and two
underground rigs. A fourth rig is due to commence drilling in the
third quarter and will be dedicated to accelerating underground
drilling for the 50C nickel trough where high grade nickel was
recently discovered, including G50-22-005E which intersected 11.6%
nickel over 4.6 metres, included 18.4% nickel over 2.2 metres (see
Karora news release dated April 6,
2021). All four targets represent potential extensions to
existing Mineral Resources or known mineralization and have
potential to add significant value to the Beta Hunt operation.
Figure 6: Beta Hunt plan view showing active exploration
drill targets
Higginsville
Higginsville exploration is currently focused on assessing the
results of drilling and interpretative work completed in the first
half of 2021 before proceeding on the next stage of regional
drilling.
At Lake Cowan, all aircore drilling results have now been
received and are being analyzed for the next phase of targeting
work. The highlight from the drilling was an intersection of 1.35
g/t over 50 metres, including 3.64 g/t over 16 metres, north of the
existing Monsoon prospect (see Karora news release dated
February 8, 2021). In 2016,
intercepts of 11.4 g/t over 50 metres in hole SPBC0313 and 6.4 g/t
over 38 metres in hole SPC0320 were reported at the Monsoon
prospect by S2 Resources (see S2 Resources news release dated
July 21, 2016). A qualified person of
the Corporation has not completed sufficient work to verify such
historic drill results. However, the Corporation believes that such
drilling and analytical results were completed to industry standard
practices. The information provides an indication of the
exploration potential of this deposit but may not be representative
of expected results.
Monsoon and Monsoon North are part of the Sleuth Trend which is
interpreted as part of the Zuleika Shear Zone - a regionally
prospective structure that, along with subsidiary faults, controls
the bulk of the Higginsville Central gold deposits (2 million
ounces)1, extending 55 kilometres north to Cave Rocks
(0.5 million ounces)1, 70 kilometres north to Mount
Marion (0.7 million ounces)1 and 110 kilometres north to
Kundana (6 million ounces)1. CSA Global Mining Industry
Consultants have been commissioned to undertake a 3D targeting
desktop study focusing on the Sleuth Trend area of the Lake Cowan
Project with the aim of producing high quality and
prospectivity-ranked targets for follow-up drilling.
At Higginsville Central, the focus remains on resource
definition with current drilling aimed at extending and upgrading
existing Mineral Resources at the Two Boys and Aquarius deposits.
Additional drilling is also planned for the Fairplay and Trident
deposits later this year.
- Estimated gold production ounces.
Compliance Statement (JORC 2012 and NI 43-101)
The information in the report to which this statement is
attached that relates to Mineral Resources for the Spargos deposit
is based on information compiled or reviewed by Mr Graham de la Mare, a Competent Person who is a
Fellow of the Australian Institute of Geoscientists. Graham de la Mare is a full-time employee of
Karora Resources and has sufficient experience that is relevant to
the style of mineralisation and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent
Person as defined in the 2012 Edition of the 'Australasian Code for
Reporting of Exploration Results, Mineral Results, Mineral
Resources and Ore Reserves'. Graham de la
Mare consents to the inclusion in this announcement of
statements based on this information in the form and context in
which it appears.
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 currently being expanded to
1.6Mtpa in a Phase I mill expansion. The plant 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 1,900 square kilometers. The Company
also owns the high grade Spargos Reward project which is
anticipated to begin mining in the third quarter of 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.
Non-IFRS Measures
This news release refers to all-in sustaining cost (AISC)
which is not a recognized measure under IFRS. Such non-IFRS
financial measures do not have any standardized meaning prescribed
by IFRS and are therefore unlikely to be comparable to similar
measures presented by other issuers. Management uses these measures
internally. The use of these measures enables management to better
assess performance trends. Management understands that a number of
investors and others who follow the Corporation's performance
assess performance in this way. Management believes that these
measures better reflect the Corporation's performance and are
better indications of its expected performance in future periods.
This data is intended to provide additional information and should
not be considered in isolation or as a substitute for measures of
performance prepared in accordance with IFRS.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains "forward-looking information"
including without limitation statements relating to production
guidance, the Company's multi-year consolidated growth plan and
guidance to double gold production, cost and ASIC guidance, the
proposed expansion of the Beta Hunt underground mine by 2024, the
Phase II expansion, the Higginsville and Beta Hunt, the coming
online of the Spargos Reward and Higginsville Central deposits, the
ability to refinance the existing deb facility, the timing for the
completion of technical studies and resource estimates, the timing
for the completion of technical studies, liquidity and capital
resources of Karora, production guidance, organic growth profile
and the potential of the Beta Hunt Mine, Higginsville Gold
Operation, the Aquarius Project, Spargos Gold Project and Lake
Cowan prospect.
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.
SOURCE Karora Resources Inc.