TORONTO, April 20,
2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX:
KRRGF) ("Karora" or the "Corporation") is pleased to announce
consolidated gold production of 27,489 ounces for the first quarter
of 2022 from its Beta Hunt and Higginsville mines in Western Australia. Gold sales for the quarter
were 26,286 ounces. Karora's consolidated unaudited cash
balance was $78 million as of
March 31, 2022 as the company
deployed capital into its growth plan.
Paul Andre Huet, Chairman &
CEO, commented: "I am extremely proud of our gold production during
the first quarter which was in line with our 2022 mine plan,
despite challenging conditions.
As with many of our peers in the mining business, the first
quarter of 2022 was impacted by lower labour availability and
higher costs associated with state-mandated COVID-19 protocols.
With Western Australia's
interstate border opening on March
3rd, the state has seen an elevated number of
COVID-19 cases which has led to increased worker absenteeism across
all sectors.
Our full-year 2022 guidance range for gold production of between
110,000 to 135,000 ounces and AISC1 of US$950 to US$1,050
per ounce sold remains unchanged. As previously indicated, we
expect the temporary cost and labour impacts of COVID-19 mandates
on operations to diminish as the year progresses resulting in full
year production being weighted to the second half of the year with
associated lower costs. It is important to note that we introduced
payable nickel production guidance for 2022 of between 450 to 550
tonnes. We assumed a conservative nickel price of US$16,000 per tonne (see Karora new release dated
February 14, 2022) in our
AISC1 by-product credit forecast, well below the current
spot price of over US$33,000 per
tonne.
1. Non-IFRS: the definition
and reconciliation of these measures are included in the Non-IFRS
Measures section of Karora's news release dated March 14, 2022 and
Karora's MD&A dated March 14, 2022.
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Our March 31, 2022 unaudited cash
balance of $78 million was
approximately $13 million lower than
our December 31, 2021 cash balance as
a result of increased capital expenditures related to our growth
plan to increase gold production to an anticipated range of 185,000
to 205,000 ounces by 2024. The major growth plan capital
expenditures for 2022 are related to advancing work on the second
decline at Beta Hunt and expanding the Higginsville Mill from 1.6
Mtpa to 2.5 Mtpa by 2024.
Overall, our performance in the first quarter of 2022 was in
line with our expectations as we anticipated COVID-19 related
pressures on production costs in the first half of 2022 and,
accordingly, factored this into our 2022 guidance. I am grateful to
our operating team in Western
Australia for their continued strong performance during
challenging times."
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, 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 1,900 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.