TORONTO, March 11,
2024 /CNW/ - Karora Resources Inc. (TSX: KRR)
("Karora" or the "Corporation") is pleased to announce updated 2024
gold production guidance of 170,000 – 185,000 ounces and all-in
sustaining cost (AISC)1 cost guidance of US$1,250 – US$1,375
per ounce sold.
Table 1 – 2024 GUIDANCE
PRODUCTION &
COSTS
|
Gold
Production
|
koz
|
170 – 185
|
Payable Nickel
Production2
|
tonnes
|
200 - 300
|
All-in sustaining
costs (AISC) 1
|
US$/oz
|
1,250 –
1,375
|
|
CAPITAL
INVESTMENTS
|
Sustaining
Capital
|
A$M
|
11 – 16
|
Growth Plan Capital
(including Mine Development)
|
A$M
|
80 – 90
|
Exploration &
Resource Development Capital
|
A$M
|
18 – 23
|
1.
|
Non-IFRS: the
definition and reconciliation of these measures are included in the
Non-IFRS Measures section of Karora's MD&A dated November 10,
2023.
|
2.
|
Payable nickel
production guidance is treated as a by-production credit that is
reflected in AISC.
|
3.
|
See below for "Notes to
Table 1" for additional information.
|
Karora's updated guidance incorporates optimized 2024 mine and
development plans across its operations. At Beta Hunt, this
includes planned mine development required to bring the mine to
2.0Mtpa as well as accessing the new Fletcher zone by the end of
the year. The guidance also includes further equipment additions,
processing plant upgrades at both Higginsville and Lakewood,
tailings storage expansions and other growth-related expenditures.
By the end of 2024, Karora's three-year growth plan will have been
executed to deliver a 2.0Mtpa operation at Beta Hunt feeding two
upgraded mills alongside contributions from Higginsville Gold
Operations.
Paul Andre Huet, Chairman &
CEO, commented: "Following our record full year gold production of
160,492 ounces in 2023, gold production in 2024 is projected to be
another significant increase to between 170,000 – 185,000 ounces.
Our updated guidance incorporates our ramp up to an annualized
2.0Mtpa production rate at Beta Hunt by end of year as well as
contributions from Pioneer, Two Boys and stockpiles. The minor (5%)
trim to the top end of our gold production guidance reflects a
focus on prioritizing higher margin Beta Hunt ounces over slightly
lower margin smaller open pit options at Higginsville.
Given increased cost pressures experienced across the industry
since our last update in March 2023,
we have adjusted our AISC guidance for 2024 to reflect the
current operating environment and lower planned nickel by-product
credits.
At Beta Hunt we are in a position of unique operational
flexibility with respect to mining nickel. The mine leverages
shared infrastructure for both gold and nickel mining, driving a
very competitive cost structure per nickel tonne. However, with the
global pressure on spot nickel prices, we have made the decision to
reduce higher cost hand-held nickel mining to focus on mechanized
mining in our currently developed areas, trimming forecast payable
nickel production in 2024 to a range of 200-300 nickel tonnes. With
significant dual-purpose infrastructure in place, an enviable
feature of our operations is the ability to significantly ramp up
the new 50C/Gamma nickel blocks as market conditions warrant.
Capital guidance for our final year of the Beta Hunt 2.0Mtpa
growth plan, involves mine development, equipment additions and
growing the workforce to accommodate the higher production rates.
The 10% increase in midpoint capital guidance reflects, among other
things, the decision to move more aggressively in advancing the
compelling Fletcher Zone, an impressive new area proximal to our
Western Flanks and Larkin mining areas.
We look forward to continuing to deliver on our plan and extend
the Beta Hunt mine life via the drill bit. With the current mining
areas of Western Flanks and A Zone still growing, the Fletcher Zone
is poised to be the next exciting new gold production target area
joining Larkin, Mason and Cowcill. As we have stated before, the
exploration and resource expansion potential at Beta Hunt remains
wide open, which we look forward to drilling aggressively via
another A$18 - $A23M exploration and resource development budget
this year.
Overall, we are proud of the progress made to date on our growth
plan which has delivered an aggressive organic expansion schedule
through a challenging cost environment for the entire sector,
taking Karora from a production level of just 99k oz in 2020 to the targeted 170,000 - 185,000
oz in 2024."
Notes to Table 1
(1)
|
2024 guidance, which
was announced in March 2023 (see Karora news release dated March
23, 2023), is updated as detailed above in Table 1.
|
(2)
|
The Corporation's
guidance assumes targeted mining rates and costs, availability of
personnel, contractors, equipment and supplies, the receipt on a
timely basis of required permits and licenses, cash availability
for capital investments from cash balances, cash flow from
operations, or from a third-party debt financing source on terms
acceptable to the Corporation, no significant events which impact
operations, an A$ to US$ exchange rate of 0.67 and A$ to C$
exchange rate of 0.90. Assumptions used for the purposes of
guidance may prove to be incorrect and actual results may differ
from those anticipated. See below "Cautionary Statement Concerning
Forward-Looking Statements".
|
(3)
|
Exploration
expenditures include capital expenditures related to infill
drilling for Mineral Resource conversion, capital expenditures for
extension drilling outside of existing Mineral Resources and
expensed exploration. Exploration expenditures also includes
capital expenditures for the development of exploration
drifts.
|
(4)
|
Capital expenditures
exclude capitalized depreciation and leased equipment.
|
(5)
|
AISC calculations are
for the Australian operations only, and exclude non-cash
share-based payments expense, derivative settlements, and net
realizable value adjustments to prior period stockpiles. The
Company acquired the Lakewood mill in 2022 and embarked on an
expansion program to grow the Beta Hunt gold mine to 2Mtpa mining
rate during 2024. Mine development for projects with greater than 1
year mine life and equipment acquisition are being attributed to
growth capital during this growth phase
|
(6)
|
See "Risk Factors"
described in the Corporation's MD&A dated November 10,
2023.
|
About Karora Resources
Karora is focused on increasing gold production at its
integrated Beta Hunt Gold Mine and Higginsville Gold Operations in
Western Australia. Ore is
processed at two centralized plants: the 1.6 Mtpa Higginsville mill
and the 1.0 Mtpa Lakewood mill, both located near our mining
operations. At Beta Hunt, a robust gold Mineral Resource and
Reserve is hosted in multiple gold shears, with gold intersections
along a 5 km strike length remaining open in multiple directions.
Higginsville has a substantial Mineral gold Resource and Reserve
and prospective land package totaling approximately 1,900 square
kilometers. 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 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 liquidity
and capital resources of Karora, production guidance, full year
consolidated 2024 production guidance and the potential of the Beta
Hunt Mine and Higginsville Gold Operation, upgrades and expansions
at the Lakewood Mill, and Karora's future plans.
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.sedarplus.ca.
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.