TORONTO, Oct. 14, 2020 /CNW/ - Karora Resources Inc. (TSX:
KRR) ("Karora" or the "Corporation") is pleased to
announce another strong quarter, with consolidated gold
production of 24,717 gold ounces during Q3 2020 from its Beta Hunt
and Higginsville mines in Western
Australia. Gold sales for the quarter were 22,912 ounces.
The difference in ounces sold vs. produced was due to timing of
gold deliveries to the Perth Mint.
Karora's consolidated cash balance increased to $67.3 million as at September 30, 2020, a 34% increase from
$50.2 million on June 30, 2020.
Paul Andre Huet, Chairman &
CEO, commented: "I am extremely pleased with our solid progress
during the third quarter both operationally and on the corporate
level. Our operations continued the now well-established trend of
consistent and reliable gold production against the backdrop of the
challenges we have all faced associated with the prudent
precautions in place during the COVID-19 pandemic. This is now our
fifth straight quarter of strong gold production results since
acquiring Higginsville in June of 2019. These results are a
testament to the dedication and talent of our operations team.
Production for the first three quarters of 2020 was 73,612
ounces, which is in line with our 2020 gold production guidance of
90,000-95,000 ounces and AISC1 of US$1,050-$1,200 per
ounce sold.
Most importantly we continue to add significant cash to our
balance sheet, with $17 million added
to our cash position during the quarter, bringing our total to
$67.3 million in cash as of
September 30, 2020.
On the corporate side, we completed a number of important
milestones during the quarter that position us well to continue our
positive momentum going forward. We completed a 4.5 to 1 share
consolidation, closed the Maverix Metals transaction to reduce the
Beta Hunt gold royalty by 37%, closed the acquisition of the
Spargos Reward High-Grade Gold Project, announced new gold and
nickel discoveries at the Beta Hunt Mine and, on the back of
ongoing drilling success at Higginsville and Beta Hunt, increased
our 2020 exploration budget across our Western Australia operations by 50% to
A$15 million.
We remain confident that we will reach our target of reducing
AISC cost to US$1,000 per ounce by
the end of 2020, despite the cost and disruption associated with
the temporary measures we've put in place to mitigate the risks of
the COVID-19 pandemic and the highly competitive market for mining
talent and services in Western
Australia.
Overall, I could not be happier with both the corporate
transformation and operational turnaround we have executed this
year. Heading into the final quarter with an aggressive drilling
program backed by strong free cash flow generating assets has us
excited to deliver on our remaining internal targets."
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section of Karora's MD&A dated August 10,
2020.
|
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
historical gold resource and highly prospective land package
totaling approximately 1,800 square kilometers. 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 potential
of the Beta Hunt Mine, Higginsville Gold Operation and Spargos
Reward 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.
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.