Highlights
- Karora is announcing a partnership with The Net Zero
CompanyTM in order to commit to, and implement, a
pathway to become one of the world's first net zero junior gold
mining companies.
- Karora will work with The Net Zero CompanyTM to
seek to ensure its approach to setting and achieving GHG reduction
targets is inline with best practices based on available science to
achieve the aspirations of the Paris Agreement. As the program is
further outlined and targets are identified, updates will be
provided to the market.
- Karora's initial focus will be on Scope 1 and 2 emissions
reductions, followed by Scope 3 emissions reductions to work toward
its goal of reaching True Net Zero (Scope 1, 2 and 3)
status.
- Progress on the GHG reduction program will be included in
Karora's inaugural ESG Report which is expected in early
2022.
TORONTO, June 14, 2021 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Company") is pleased to announce a new
partnership with The Net Zero CompanyTM focused on
developing a greener future across Karora's operations and
corporate offices.
The partnership will see Karora, together with The Net Zero
CompanyTM, develop a pathway and set targets towards a
True Net Zero mining future (covering Scope 1, 2 and 3 green
house gas emissions). The pathway will involve setting green house
gas ("GHG") emissions reduction targets based on science-based
methodologies. This partnership will build upon the robust ESG
program that is already underway at Karora, with the goal of
delivering its inaugural ESG report in early 2022.
Paul Huet, Chairman and CEO of
Karora said, "Mining is a critical part of the global response to
climate change not only with respect to the supply of key materials
required for the low carbon transition, but also with respect to
reducing greenhouse gas emissions at mine sites. At Karora, not
only are we already preparing to do our part, but we are setting
the stage to be a sector leader in the junior gold mining space
with the goal to ultimately become a Net Zero business. Mining is a
carbon intensive industry, and we view this partnership as an
opportunity to take a proactive approach in reducing our carbon
footprint.
Our near-term efforts will be focused on analyzing GHG emissions
reduction opportunities across our operations, including the
potential implementation of alternative and renewable power
sources. We will also be evaluating the potential for further
operational efficiencies, an initiative with which we have already
had tremendous success over the past two years as we aggressively
reduced our cost structure. While we are evaluating these potential
opportunities, we intend to complement this GHG emissions reduction
work with strategies to offset our current emissions.
At Karora, we are focused on working towards our True Net
Zero goal by using a science-based approach to setting our GHG
reduction targets. Scope 1 and 2 emissions will form the basis of
our initial focus – we will prioritize reductions in these directly
controlled areas first. Next, we will turn our focus to evaluating
and reducing our Scope 3 emissions which are critical to achieving
True Net Zero status.
After a tremendous two years of operational success since
acquiring the Higginsville Gold Operations, we are now squarely
focused on improving our carbon footprint, helping to drive a
greener future in the mining business."
Andre Fernandez, CEO of The Net
Zero CompanyTM stated, "Partnering with a top performing
gold mining company like Karora is a momentum builder for The Net
Zero CompanyTM. The operational and corporate turnaround
executed by Karora over the past two years has been best-in-class
and we are impressed by their pioneering attitude towards becoming
one of the world's first net zero junior gold miners: a sector
defining moment.
We have already begun work on several parallel cost positive
initiatives with Karora aimed towards rapidly achieving True Net
Zero status that is anchored in science. We offer a phased
approach to achieving Net Zero by analyzing and prioritizing
emission reduction opportunities as well as sequestration solutions
to transform companies into greener global citizens while driving
stakeholder returns.
We look forward to this journey towards mining a very profitable
and sustainable future together with Karora."
Net Zero Roadmap Work Underway
Karora's early efforts with regards to GHG emissions reductions
at site are underway. The phased replacement of the aged haul fleet
at Beta Hunt with new AD60 haul trucks has led to a reduction in
total GHG emissions, while improving productivity and output as
reflected by the operational deliveries over the last year.
The company intends to disclose the results of its GHG emissions
inventory assessment, including all Scope 1 and 2 emissions, on its
website. Once a pathway is developed, Karora aims to set interim
GHG reduction targets as part of its reduction program. The Company
will then report annually on progress towards reaching interim and
net zero GHG reduction targets.
Karora has engaged third party renewable power experts to
evaluate the use of solar and other renewable strategies to reduce
GHG emissions at its operations. If viable, these solutions have
the potential for multiple benefits including reduced exposure to
highly variable diesel prices, grid power pricing fluctuations as
well as potentially lowering overall average power costs.
The Company's strategy will focus initially on reaching Scope 1
and Scope 2 net zero emissions. Following this milestone, the
Company will turn its focus towards Scope 3 emissions to reach
True Net Zero status over the coming years. For reference,
Scope 1 involves direct emissions on Karora's properties, Scope 2
includes purchased electricity feeding Karora's operations, and
Scope 3 represents both upstream and downstream value/supply chain
emissions.
About Karora Resources
Karora is focused on growing gold production and reducing costs
in an energy conscious manner 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 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 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.
About The Net Zero Company
The Net Zero Company ("NZC") is focused on driving a cost
positive solution to reduce GHG emissions for the mining industry.
Recognizing a global shift in institutional investment criteria and
the near term opportunity for the mining sector to be a leader in
the global emissions reduction space, NZC has assembled a
experienced team of experts in the carbon markets, GHG reduction,
mining operations and capital markets sectors to help mining
companies deliver a Net Zero strategy that will both materially
impact emissions and potentially drive significant stakeholder and
shareholder returns.
Here's to a greener (and golden) future.
Contact us: info@thenetzeroco.com
www.thenetzerocompany.com
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains "forward-looking information"
including without limitation statements relating to the Company
achieving a True Net Zero mining future in line with Science Based
Targets, including the goals of reaching Scope 1 Scope 2 net zero
emissions, reducing the Company's carbon footprint, achieving net
zero GHG emissions across the business reducing exposure to diesel
prices, grid power pricing fluctuations and a source of additional
labour creation and the Company becoming world's first Net Zero GHG
junior mining company.
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.