TORONTO, Aug. 12,
2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX:
KRRGF) ("Karora" or the "Corporation") is pleased to announce
the positive results of the Preliminary Economic Assessment ("PEA")
for Nickel Resources at its Beta Hunt Mine in Western Australia.
Paul Andre Huet, Chairman &
CEO, commented: "The PEA highlights the robust economics and
by-production credit potential for nickel production from the Beta
Hunt Mine. This PEA is based on just our initial nickel resource
estimate at Karora which we expect to expand as drilling continues.
The initial results from the PEA are tremendous, outlining a very
low capex project with strong leverage to nickel prices in a macro
environment potentially poised for price appreciation in the coming
years as electric vehicle demand scales. Karora is now in a very
unique position, boasting strong gold production growth coupled
with outstanding nickel by-product potential over the next several
years – an enviable position to be in.
I look forward to the ramp-up of nickel production at Beta Hunt
beginning in 2023 and advancing the excellent exploration potential
to add to the resource base. The PEA base case, using our
January 31, 2022 resource, supports
an 8-year mining plan to produce 9,435 payable nickel tonnes at a
net AISC1 of A$16,946 per
tonne of nickel sold (US$12,371 per
tonne). On an average annual basis, production is forecasted to
increase considerably from the 450 – 550 tonnes we expect to
produce in 2022.
The total capital investment is estimated to be a very low
A$18.7 million, with just over
A$7 million deployed in the first
year, yielding a very robust IRR of 105% for the base case (pre-tax
and assuming a US$19,500 per tonne
nickel price) and 232% for the upside case (pre-tax and assuming
US$25,000 per tonne nickel price – in
line with consensus nickel pricing). On a by-product basis, our
gold AISC costs have the potential to be reduced by A$80 to A$100 per
ounce sold using the base case assumptions.
In my view, the PEA is an excellent starting point for realizing
the full potential for a revitalized nickel production plan at Beta
Hunt. I believe we are just scratching the surface of what I expect
will be a growing by-product credit contribution from nickel
production at Beta Hunt for many years to come.
It is important to remind ourselves that Beta Hunt was a Nickel
mine for over 40 years and produced over 60,000 nickel tonnes based
on a very large nickel resource system. With the 50C Trend and
Gamma Block discovery now part of our Mineral Resources, we are
looking forward to continued drill definition work along the ~2.6km
strike length to our property boundary. Of particular interest with
respect to potential resource expansion is historic surface
drill hole LD4022 which intersected 9.5 metres (downhole) of 11.4%
nickel, located 400 metres southeast along strike beyond the margin
of the January 31, 2022 Mineral
Resource (see Karora news release dated May
11, 2022). As we extend our BRI exploration drive south into
the Gamma block, we are very much looking forward to drill testing
what has the potential to be another very large system."
Highlights of the Beta Hunt Nickel
PEA:
- Strong Economics on Initial Resource: Base case
results (nickel price of US$19,500/t)
yields a pre-tax NPV5% of A$57
million and IRR of 105%. Upside case results, closer to
nickel consensus pricing of US$25,000/t yields a pre-tax A$111 million NPV5% and IRR of
232%.
- Leverage to Nickel Prices: A 20% increase in the
nickel price increases pre-tax NPV5% to A$95.2 million, or 66% compared to the Base
Case.
- Low-Cost: Nickel net C1 cash costs are expected
to be A$14,542/t. Base Case Net
AISC1 costs are expected to be A$16,946/t. On a per gold ounce produced basis,
this equates to an approximate annual average of $A80 to A$100 per
ounce.
- Upside Potential: The Beta Hunt Nickel Mineral
Resource occurs in two main blocks, the Beta Block and Gamma Block,
both of which have significant potential for Mineral Resource
additions, including the 50C nickel trend where continuous nickel
mineralization has been defined over 800 metres in strike length,
with the potential to extend up to 2.6 km in strike length. The
current PEA results are based on the current Beta Hunt Nickel
Mineral Resource, with significant expansion potential
remaining.
- Nickel drilling: Nickel-dedicated drilling for
the remainder of the year will comprise both resource definition to
upgrade the 40C and 50C Mineral Resource and exploration drilling
targeting the 44C and 90C nickel troughs. The 44C is the
interpreted position of the 40C trough, offset and north of the
Alpha Island Fault and west of the Western Flanks gold deposit. The
90C represents the interpreted offset extension of the Beta West
mineralization previously mined by Consolidated Minerals. Both
the 44C and 90C are untested by existing drilling.
1.
|
Non-IFRS: the
definition of these measures are included in the Non-IFRS Measures
section Karora's MD&A dated August 12, 2022.
|
Beta Hunt Mine PEA
Summary
The Beta Hunt Mine, located 600 km from Perth in Kambalda, Western Australia, is home to a deposit with
the very rare feature of hosting both gold and nickel resources in
adjacent discrete mineralized zones.
Nickel was first discovered at Beta Hunt in 1970 by Western
Mining Corporation ("WMC"). The mine developed and operated by WMC
from 1974 to 1998 and was sold to Gold Fields in 2001. In 2003,
Reliance Mining Limited ("RML") acquired the nickel rights and
resumed production. Consolidated Minerals Limited acquired RML in
2005 and invested in both increasing resources and expanding
production. The mine operated continuously until the end of 2008,
when it was placed on care and maintenance due to the financial
crisis and associated collapse in metal prices. Nickel operations
were restarted in 2014. Initial gold production occurred in June to
July 2014, temporarily ceased and
then recommenced at the end of 2015 with continuous operation
since. Karora acquired 100% of Beta Hunt in 2016 including both
gold and nickel rights.
In May 2022, Karora announced an
updated nickel Measured and Indicated Resource for Beta Hunt of
19,600 nickel tonnes (22% increase over prior) and Inferred Mineral
Resource of 13,200 nickel tonnes ounces (52% increase over
prior).
Key outcomes of Karora's first PEA on nickel resources at Beta
Hunt are outlined below in Tables 1 and 2.
Table 1: PEA Base Case and Upside Case Operating
Summary
Category
|
Item
|
Units
|
Base
Case
(Nickel Price
US$19,500/t)
|
Upside
Case
(Nickel Price
US$25,000/t)
|
Production
|
Mineralization
Mined
|
'000 t
|
862
|
862
|
Payable
Nickel1
|
t
|
9,435
|
9,435
|
Opex
|
Revenue/ore
tonne2
|
A$/t
|
$292
|
$375
|
Total Operating
Costs
|
A$/t
|
$159
|
$159
|
Ni Net C1
Costs
|
A$/t
Ni1
|
$14,542
|
$14,542
|
Capex & Total
Costs
|
Total Capital
Investment3
|
A$M
|
$18.67
|
$18.67
|
Ni Net
AISC4
|
A$/t
Ni1
|
$16,946
|
$17,624
|
Valuation
5,6
|
NPV 5%
(US$19,500/t Ni)
|
A$M
|
$57.4
|
$110.6
|
IRR
|
%
|
105 %
|
232 %
|
1.
|
Payable nickel
recovered to concentrate (payability x Ni to
concentrate)
|
2.
|
Revenue includes
deductions for payability
|
3.
|
Capital investment
excludes closure costs
|
4.
|
AISC: all-in sustaining
cost includes site costs, offsite costs, royalties and sustaining
capital
|
5.
|
NPV includes operating
cash flow and capital investment
|
6.
|
Pre-tax NPV and
IRR
|
|
|
Table 2: Base Case LOM Summary
Macro-
Economic
|
Units
|
Total
|
Year
1
|
Year
2
|
Year
3
|
Year
4
|
Year
5
|
Year
6
|
Year
7
|
Year
8
|
Ni
|
US$/t Ni
|
|
$19,500
|
$19,500
|
$19,500
|
$19,500
|
$19,500
|
$19,500
|
$19,500
|
$19,500
|
Exchange
Rate
|
US/AUS
FX
|
|
0.73
|
0.73
|
0.73
|
0.73
|
0.73
|
0.73
|
0.73
|
0.73
|
Payable
t Ni
|
t Ni
|
9,435
|
267
|
1,604
|
2,090
|
2,077
|
1,337
|
974
|
708
|
379
|
Gross
Revenue
|
A$k
|
$252,031
|
$7,129
|
$42,835
|
$55,834
|
$55,473
|
$35,715
|
$26,019
|
$18,904
|
$10,122
|
Operating
Costs
|
A$k
|
$137,201
|
$10,529
|
$26,137
|
$28,488
|
$26,150
|
$18,304
|
$12,869
|
$9,559
|
$5,165
|
Net C1 Costs -
Ni
|
US$/t Ni
|
$10,615
|
$28,799
|
$11,899
|
$9,949
|
$9,192
|
$9,994
|
$9,645
|
$9,861
|
$9,951
|
Net C1 Costs -
Ni
|
A$/t Ni
|
$14,542
|
$39,451
|
$16,299
|
$13,629
|
$12,592
|
$13,690
|
$13,213
|
$13,508
|
$13,631
|
Royalties
|
A$k
|
$22,683
|
$642
|
$3,855
|
$5,025
|
$4,993
|
$3,214
|
$2,342
|
$1,701
|
$911
|
Net AISC
(Payable Ni)
|
A$/t Ni
|
$16,946
|
$41,855
|
$18,704
|
$16,033
|
$14,996
|
$16,094
|
$15,617
|
$15,912
|
$16,035
|
Pre-Tax Cash
OCF
|
A$k
|
$92,147
|
-$4,041
|
$12,843
|
$22,321
|
$24,330
|
$14,197
|
$10,807
|
$7,643
|
$4,046
|
Capital
|
A$k
|
$18,672
|
$7,126
|
$6,973
|
$4,072
|
$337
|
$0
|
$93
|
$71
|
$0
|
The nickel PEA is preliminary in nature and is based on a
mineral resource estimate that includes inferred mineral resources
that are considered too speculative geologically to have the
economic considerations applied to them that would nickel enable
them to be categorized as mineral reserves, and there is no
certainty that the nickel PEA will be realized.
Mining
Access to the main zones of nickel mineralization considered in
the nickel PEA for the operating Beta Hunt Mine (Gamma, Beta
Central, SW and 40, and East Alpha zones – see Figure 1 below) is
via the existing main decline, with only limited additional
development required. The most significant additional primary
development required includes an exploration incline and return air
drive system to access the Gamma Block Mineral Resources. This
development will serve the dual purpose of providing access to the
Gamma nickel resources and for the continuation of the gold
exploration in this area of the mine.
In areas where nickel mineralization is a narrow trough and flat
lying, mining is conducted with handheld airleg drills using the
room-and-pillar method, whereas in areas that are more steeply
dipping, nickel mineralization mining is conducted with small scale
mechanised equipment using a cut-and-fill method.
In areas where the resource is thinner than 2.3 metres wide in
the cut-and-fill sections, ore grades will be improved through
split-firing techniques, and wider than 2.3 metres full development
face cuts are taken. Room-and-pillar layouts will target an initial
extraction ratio of 60% with secondary pillar extraction on a
retreat basis, increasing the overall extraction to 75%.
Design criteria used in the development of the nickel sections
production schedule are based on current operating performance as
summarized in Table 3 below.
Table 3 PEA Base Case Nickel Mining Production Plan
Item
|
Units
|
Total
|
Year
1
|
Year
2
|
Year
3
|
Year
4
|
Year
5
|
Year
6
|
Year
7
|
Year
8
|
Exploration
|
m
|
2,380
|
682.1
|
1,593.0
|
104.7
|
-
|
-
|
-
|
-
|
-
|
Twin Boom
Jumbo
|
m
|
2,128
|
849.8
|
817.2
|
461.5
|
-
|
-
|
-
|
-
|
-
|
Single Boom
Jumbo
|
m
|
11,312
|
2,621.5
|
3,834.8
|
2,847.6
|
1,905.8
|
102.6
|
-
|
-
|
-
|
Nickel Mineralization
Mined
|
kt
|
862
|
35.1
|
159.5
|
175.8
|
150.5
|
99.6
|
96.0
|
96.2
|
49.7
|
Nickel Grade
Mined
|
% Ni
|
1.98 %
|
1.93 %
|
1.90 %
|
2.10 %
|
2.42 %
|
2.27 %
|
1.85 %
|
1.43 %
|
1.35 %
|
Contained
Nickel
|
t
|
17,145
|
677.7
|
3,037.8
|
3,700.1
|
3,643.6
|
2,257.5
|
1,779.1
|
1,376.7
|
673.0
|
Operating Costs
Total operating costs outlined in the PEA are A$154 per tonne for the criteria outlined in the
PEA. The nickel mining operations are costed either directly or
indirectly through pro rata cost allocations based upon tonnes for
the activity, as summarized in Table 4 below.
Table 4: PEA Operating Cost Estimate
Item
|
Units
|
Base Case
Nickel
|
Mineralization Mined
Mech C/F1
|
kt
|
586
|
Mineralization Mined R
& P2
|
kt
|
277
|
Total Mineralization
Mined
|
kt
|
862
|
Nickel Mining Mech
C/F1
|
A$/t ore
|
$139
|
Nickel Mining
R&P2
|
A$/t ore
|
$86
|
Average
Mining
|
A$/t ore
|
$103
|
Processing and
Haulage
|
A$/t ore
|
$50.18
|
Grade
Control
|
A$/t ore
|
$0.83
|
Total Operating
Costs
|
A$/t
ore
|
$154
|
Total Operating
Costs
|
A$
'000
|
$137,000
|
1.
|
Mechanised Cut-and-fill
inclined access development
|
2.
|
Handheld
room-and-pillar inclined operating development
|
Capital Cost
Beta Hunt is an operating gold mine with access infrastructure
already in place adjacent to existing and proposed nickel mining
areas. However, there is a requirement to excavate additional waste
development to provide access and ventilation returns to service
the new nickel mining areas. Capacity of the existing mining fleet
is assumed to be allocated to the production of gold
mineralization, therefore the additional development activity
requires additional personnel and equipment.
Processing of nickel mineralization is performed offsite and by
third parties and no additional investment is required by Karora
for surface infrastructure such as a mill or tailings storage
facility.
Table 5 below summarizes the nickel project capital requirements
for the Base Case mine plan that depletes the current Measured,
Indicated and Inferred Resources.
Table 5: PEA Capital Cost Estimate
Item
|
Units
|
Base
Case
|
Capitalized
Development
|
A$M
|
$11.97
|
Vertical
Development
|
A$M
|
$0.52
|
Mining Fleet
|
A$M
|
$4.70
|
Misc
Equipment
|
A$M
|
$1.49
|
Nickel
Subtotal
|
A$M
|
$18.67
|
Sensitivity
Analysis was performed to test the +/- 20% NPV sensitivity to
the following key parameters and reported in Table 6. Importantly,
given the existing infrastructure in place and dual purpose use for
gold and nickel mining, the company has the real time ability to
respond in a flexible manner to any fluctuations in nickel pricing
– a unique feature of Beta Hunt.
-
-
- Grade of nickel mineralization
- Site operating costs
- Total capital costs
- Price of nickel.
Table 6: Beta Hunt Base Case Sensitivity Analysis
Base Case Pre-Tax
NPV Sensitivity Value
|
Change
-20%
|
Change
+20%
|
Grade of Nickel
Mineralization (%)
|
A$12.2M
|
A$102.4M
|
Site Operating Costs
(A$)
|
A$73.1M
|
A$41.9M
|
Total Capital Costs
($A)
|
A$60.9M
|
A$54.1M
|
Price of Nickel
(US$)
|
A$19.8M
|
A$95.2M
|
Nickel Mineral Resource
As shown in Table 7, the Measured and Indicated nickel Mineral
Resources as at January 31, 2022
totalled 692k tonnes grading 2.8% Ni
for 19,600 nickel tonnes an increase of 3,500 nickel tonnes, or 22%
compared to the September 2020
Measured and Indicated Mineral Resource estimate. As at
January 31, 2022, Inferred Mineral
Resources totalled 492k tonnes
grading 2.7% nickel for 13,200 nickel tonnes an increase of 4,500
nickel tonnes, or 52%, compared to the September 2020 Inferred Mineral Resource
estimate.
The new nickel Mineral Resource incorporated updates to the 10C
and 30C resources plus a small, new trough, the 40C. The bulk of
the increased resources is due to the addition of the 50C Trend in
the Gamma zone, which makes up 22% (4,300 nickel tonnes) of the
Measured and Indicated Mineral Resource and 29% (3,800 nickel
tonnes) of the Inferred Mineral Resource. The Beta Hunt Nickel
Mineral Resource estimate is net of mine production depletion of
7k tonnes grading 3.0% for 211 nickel
tonnes over the period October 1,
2020 to January 31, 2022. The
depletion is from the Beta Southwest resource.
Table 7: Beta Hunt Nickel Mineral Resources as at
January 31,
20221,2,3,5,6,7,8,9,10
January-2022
Mineral
Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
(kt)
|
Ni
(%)
|
Ni
(t)
|
(kt)
|
Ni
(%)
|
Ni
(t)
|
(kt)
|
Ni
(%)
|
Ni
(t)
|
(kt)
|
Ni
(%)
|
Ni
(t)
|
Beta Block
|
-
|
-
|
-
|
494
|
2.8 %
|
13,600
|
494
|
2.8 %
|
13,600
|
175
|
2.8 %
|
5,000
|
Gamma Block
|
-
|
-
|
-
|
197
|
3.0 %
|
6,000
|
197
|
3.0 %
|
6,000
|
317
|
2.6 %
|
8,200
|
Total
|
-
|
-
|
-
|
692
|
2.8 %
|
19,600
|
692
|
2.8 %
|
19,600
|
492
|
2.7 %
|
13,200
|
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 Measured and
Indicated Mineral Resources are inclusive of those Mineral
Resources modified to produce Mineral Reserves.
|
3.
|
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.
|
4.
|
Mineral Resources are
reported within proximity to underground development and a nominal
1% Ni lower cut-off grade for the nickel sulphide
mineralization.
|
5.
|
Estimation for the
Mineral Resources is by ordinary kriging using an accumulation
method to account for narrow lodes.
|
6.
|
The Mineral Resources
assume an underground mining scenario and a high level of
selectivity.
|
7.
|
Classification is
according to JORC Code and CIM Definition Standards Mineral
Resource classification categories.
|
8.
|
The models are depleted
for underground mining to January 31, 2022.
|
9.
|
Totals may vary due to
rounded figures.
|
10.
|
Nickel Mineral Resource
Estimates were prepared under the supervision of Qualified Person
S. Devlin, FAusIMM (Group Geologist, Karora Resources).
|
Table 8: Key Assumptions
Item
|
Units
|
Base
Case
|
Nickel Price
|
US$/t
|
19,500
|
A$/US$ f/x
|
US$
|
0.73
|
Exploration Potential
Significant potential exists for the discovery of additional
nickel deposits at Beta Hunt along trend from known nickel shoots
and in poorly tested parallel structures north and south of the
Alpha Island Fault (Figure 2). This potential is supported by
the recent success in the discovery of the 30C nickel trough (see
Karora news release dated September 10,
2020) and the 50C nickel trend (see Karora news release,
April 6, 2021).
The 50C nickel trend discovery, located in the Gamma Block, was
announced in April 2021 and is now a
significant contributor to Karora's nickel Mineral Resources,
totaling approximately 22% of Measured and Indicated category
Resources and approximately 25% of Inferred category Resources. The
50C, along with the 10C nickel trend, has defined nickel
mineralization over an 800 metres strike length, and remains open
along strike to the southeast with potential to extend a full 2.6
kilometres of strike to the sub-lease boundary. This potential is
highlighted by historical surface drill hole LD4022 (Figure 2)
which intersected 9.5 metres (downhole) @ 11.4% nickel, 400 metres
southeast along strike of the new mineral resource (see KRR release
dated October 8, 2021 for more
information).
![Figure 2: Beta Hunt – Basalt/ultramafic geology highlighting nickel exploration targets (blue) and +1% Ni drill intersections (CNW Group/Karora Resources Inc.) Figure 2: Beta Hunt – Basalt/ultramafic geology highlighting nickel exploration targets (blue) and +1% Ni drill intersections (CNW Group/Karora Resources Inc.)](https://mma.prnewswire.com/media/1877011/Karora_Resources_Inc__Karora_Resources_Announces_Positive_Nickel.jpg)
Karora is continuing to drill test for new nickel troughs
encouraged by recent successes. Exploration drilling planned for
the remainder of 2022 will include testing the 44C and 90C targets
(Figure 2). The 44C is the interpreted northern offset extension to
the 40C trough and is located 200 metres west of the Western Flanks
gold deposit. The 90C is the interpreted offset extension to the
Beta West mine area. This target is supported by a coincident
trough/sulphide reflector on the ultramafic/basalt contact
interpreted from the 3-Dimensional seismic study completed by
previous owner, Consolidated Minerals in 2008. The 90C drilling is
a co-funded program with the Western Australian State Government
under their Exploration Incentive Scheme (EIS).
Drilling for extensions along strike of the 50C is planned for
2023 once the BRI development drive is extended by a further 300
metres, due to be completed by Q1 2023. The extended BRI will
provide drill access to undertake both resource definition and
extensional/exploration drilling.
Qualified Persons
The technical information in this news release has been prepared
or reviewed by, or under the supervision of Shane McLeay, B Eng Mining (Hons) FAusIMM AWASM
– Entech (Australia); and
Stephen Devlin, FAusIMM – Karora
Resources, both of whom are independent Qualified Persons as set
out in National Instrument 43-101 Standards of Disclosure for
Mineral Projects ("NI 43-101").
Mr. Stephen Devlin is Group
Geologist for Karora, a full time employee of Karora and a Fellow
of the AusIMM. Mr Devlin has sufficient experience that is relevant
to the style of mineralization and type of deposit under
consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the JORC Code, 2012 Edition, and
fulfils the requirements to be a "Qualified Person" for the
purposes of NI 43-101. Mr Devlin has reviewed and approved the
disclosure of the technical information for the Beta Hunt Nickel
Mineral Resource included in this news release.
Shane McLeay is a mining engineer
and a Fellow of the AusIMM. Mr Mcleay is an employee of Entech Pty
Ltd of Perth, Western Australia, who were employed by Karora
to undertake a Preliminary Economic Assessment based on the Nickel
Mineral Resource for Beta Hunt. Mr McLeay has sufficient experience
that is relevant to the style of mineralization and type of deposit
under consideration and to the activity being undertaken to qualify
as a Competent Person as defined in the JORC Code, 2012 Edition,
and fulfils the requirements to be a "Qualified Person" for the
purposes of NI 43-101. Mr McLeay has reviewed and approved the
disclosure of the technical information relating to mining method,
overall design work, including cost estimates for the Beta Hunt
Nickel Preliminary Economic Assessment included in this news
release.
The "JORC Code" means the Australasian Code for Reporting of
Mineral Resources and Ore Reserves prepared by the Joint Ore
Reserves Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Mineral
Council of Australia. There are no
material differences between the definitions of Mineral Resources
under the applicable definitions adopted by the Canadian Institute
of Mining, Metallurgy and Petroleum (the "CIM Definition
Standards") and the corresponding equivalent definitions in the
JORC Code for Mineral Resources.
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. and Shane McLeay, B
Eng Mining (Hons) FAusIMM AWASM – Entech (Australia). Both Qualified Persons for
the purposes of NI 43-101.
Cautionary Note to U.S. Readers
Regarding Estimates of Resources
This news release uses the terms "measured" and "indicated"
mineral resources and "inferred" mineral resources. The Company
advises U.S. investors that while these terms are recognized and
required by Canadian securities administrators, they are not
recognized by the SEC. The estimation of "measured" and "indicated"
mineral resources involves greater uncertainty as to their
existence and economic feasibility than the estimation of proven
and probable reserves. The estimation of "inferred" resources
involves far greater uncertainty as to their existence and economic
viability than the estimation of other categories of resources. It
cannot be assumed that all or any part of a "measured", "inferred"
or "indicated" mineral resource will ever be upgraded to a higher
category.
Under Canadian rules, estimates of "inferred mineral resources"
may not form the basis of feasibility studies, pre-feasibility
studies or other economic studies, except in prescribed cases, such
as in a preliminary economic assessment under certain
circumstances. The SEC normally only permits issuers to report
mineralization that does not constitute "reserves" as in-place
tonnage and grade without reference to unit measures. Under U.S.
standards, mineralization may not be classified as a "reserve"
unless the determination has been made that the mineralization
could be economically and legally produced or extracted at the time
the reserve determination is made. U.S. investors are cautioned not
to assume that any part or all of a "measured", "indicated" or
"inferred" mineral resource exists or is economically or legally
mineable. Information concerning descriptions of mineralization and
resources contained herein may not be comparable to information
made public by U.S. companies subject to the reporting and
disclosure requirements of the SEC.
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. and Shane McLeay, B
Eng Mining (Hons) FAusIMM AWASM – Entech (Australia). Both Qualified Persons for
the purposes of NI 43-101.
About Karora Resources
Karora is focused on increasing gold production to a targeted
range of 185,000-205,000 ounces by 2024 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, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. Karora recently acquired the 1.0 Mtpa Lakewood Mill in
Western Australia. At Beta Hunt, a
robust gold Mineral Resource and Reserve are 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 Corporation
also owns the high grade Spargos Reward project, which came into
production 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 nickel
production guidance, costs, returns and other related information
based on the PEA. The PEA is preliminary in nature and is based on
a mineral resource estimate that includes inferred mineral
resources that are considered too speculative geologically to have
the economic considerations applied to them that would enable them
to be categorized as mineral reserves, and there is no certainty
that the PEA will be realized.
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.