TORONTO, Jan. 26, 2022 /CNW/ - Karora Resources Inc. (TSX:
KRR) ("Karora" or the "Corporation") is pleased to announce record
annual consolidated gold production of 112,814 ounces for 2021 from
its Beta Hunt and Higginsville mines in Western Australia. Gold sales were 113,628
ounces during 2021. For the fourth quarter of 2021 gold
production was 27,925 ounces and sales were 28,734 ounces.
Karora's unaudited consolidated cash balance as at December 31, 2021 was $91.0 million, an increase of $4.3 million compared to September 30, 2021 after capital deployment into
new mining operations at Higginsville and Spargos.
Paul Andre Huet, Chairman &
CEO, commented: "Record full year 2021 gold production of 112,814
ounces places us at the upper end our full year 2021 guidance range
of 105,000 – 115,000 ounces. We have continued to grow our strong
cash position while investing in the business and ended the fourth
quarter with a record cash balance of $91.0
million.
Initial work on the second decline at Beta Hunt, an integral
component of our growth plan, is underway. In addition, we expect
the contractor selection process for the second portal and upper
portion of the second decline to be completed in the first quarter.
Detailed engineering studies are well advanced for the HGO mill
expansion from 1.6 Mtpa to 2.5 Mtpa and orders for long lead
items are on schedule to be placed in the first half of 2022.
In my 35+ years of mining, I have never worked through such
significant challenges associated with labour availability and
supply chain disruptions as we all experienced in Western Australia due to the COVID-19 pandemic
in 2021. With these challenges extending into 2022 and affecting
all mining in Western Australia, I
am confident our team can rise to the challenge once again and, as
we all do in the industry, certainly welcome a return to a more
normal business environment.
Overall, I am very pleased with our performance in 2021 and wish
to congratulate and thank all of our hard working staff and
contractors at Karora. 2021 was a record year for Karora and I am
excited to be underway with this talented team in 2022."
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 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 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 the timing for
the completion of technical studies, liquidity and capital
resources of Karora, production guidance, the completion of the HGO
mill expansion 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.