TORONTO, Oct. 14, 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 30,365 ounces for the third quarter of 2021 from its
Beta Hunt and Higginsville mines in Western Australia. Gold sales were 28,935
ounces sold during the quarter.
Production for the first three quarters of 2021 is a total of
84,889 ounces, in line with consolidated 2021 production guidance
of 105,000 – 115,000 ounces. Karora's consolidated cash balance as
at September 30, 2021 was
$86.7 million, an increase of
$4.5 million compared to June 30, 2021, after deployment of capital this
past quarter into new mining operations at Higginsville and Spargos
and into our aggressive drilling program.
Paul Andre Huet, Chairman &
CEO, commented: "Record third quarter gold production of over
30,000 ounces continues to track well with our increasing gold
production profile as we move through 2021 and places us on solid
footing to achieve our full year 2021 guidance range.
During the quarter we continued to make significant investments
in earthworks to prepare new, higher grade mining areas at
Higginsville Central mines – Aquarius and Two Boys – and at our
Spargos Mine. We also continued with our aggressive drilling
program with a focus both on resource definition and exploration
drilling. We have maintained a strong cash position while investing
in the business and ended the third quarter with a healthy cash
balance of $86.7 million, inclusive
of the proceeds from the exercise of warrants during the
quarter.
As we work through the final quarter of 2021 and look forward to
2022, we remain on track to deliver 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."
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 1.6 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 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 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
MIne and the timing for production at the Spargos Gold
Mine.
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.