TORONTO, July 15, 2021 /CNW/ - Karora Resources Inc. (TSX:
KRR) ("Karora" or the "Corporation") is pleased to announce record
quarterly consolidated gold production since the Higginsville
acquisition of 29,831 ounces for the second quarter of 2021 from
its Beta Hunt and Higginsville mines in Western Australia. Gold sales were also a
record, with 30,412 ounces sold during the
quarter.
Second quarter gold production was approximately 20% higher than
first quarter production. Production through the first two quarters
of 54,525 ounces is in line with consolidated 2021 production
guidance of 105,000 – 115,000 ounces. Karora's consolidated cash
balance as at June 30, 2021 was
$82.2 million, an increase of
$5.4 million when compared to
March 31, 2021.
During the second quarter, Karora announced its growth plan to
more than double consolidated gold production from 99,239 ounces in
2020 to 185,000 – 205,000 ounces by 2024 (see Karora news release
dated June 28, 2021). Costs are
forecasted to continue to decline, with 2024 AISC1 of
US$885-US$985 per ounce via a phased expansion of
Karora's Beta Hunt underground mine and increasing milling capacity
to 2.5 Mtpa at the HGO processing facility.
Paul Andre Huet, Chairman &
CEO, commented: "Record second quarter gold production of just
under 30,000 ounces represents a significant increase of
approximately 20% compared to our first quarter of 2021.
Furthermore, it represents a 20% improvement over the past seven
quarters of consistent production across our operations where we
have averaged approximately 25,000 ounces per quarter. Reporting
record gold sales for the second quarter of 30,412 ounces is
another tremendous achievement by our team.
This significant increase in quarterly production, boosted
by the Phase I HGO mill expansion currently underway, places us on
a solid footing to achieve our full year 2021 guide range of
105,000-115,000 ounces with just under 55,000 ounces produced
through the first two quarters.
During the second quarter we continued to make significant
investments in earthworks to prepare new, higher grade mining areas
at Higginsville Central and Spargos. We also continued to enhance
our mining fleet, with new fleet additions and replacements which
have proven to drive significant productivity and efficiency
improvements across both operations. Our drilling program pushed
forward aggressively across all our properties, with a focus on
increased resource definition drilling to set us up for our future.
Net of these significant investments in our growth, we added
$5.4 million to our cash position
during the quarter.
Overall, the second quarter built on the foundation we laid
during the first quarter, placing us well on track to deliver on
our 2021 production and cost guidance. Moving forward, we look
forward to executing on our fully funded organic growth plan which
we believe to be one of the most robust growth plans in the junior
gold mining sector."
- Non-IFRS: the definition and reconciliation of these measures
are included in the Non-IFRS Measures section of Karora's MD&A
for March 31, 2021.
About Karora Resources
Karora is focused on doubling gold production to 200,000 ounces
by 2024 compared to 2020 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, expanding to a planned 2.5 Mtpa by 2024, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. 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 and
responsible mining, as demonstrated by Karora's commitment to
reducing emissions across its operations. Karora's common shares
trade on the TSX under the symbol KRR and 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 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.