Karora Announces Record Annual Gold Production of 112,814 ounces and Gold Sales of 113,628 ounces for 2021
TORONTO, Jan. 26, 2022 – 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.
For further information: please contact: Rob Buchanan, Director, Investor Relations, T: (416) 363-0649, www.karoraresources.com