Karora Resources Inc (TSE:KRR) (OTCMKTS:KRRGF) (FRA:5RN1) has revealed 1Q production figures from its Beta Hunt and Higginsville mines in Western Australia that showed the operations produced 24,694 ounces of gold during the quarter.
The Canadian miner sold 25,547 ounces during the three-month period to end March 31, 2021, a figure that the company called “very strong.”
Karora’s gold output was in line with its 2021 production guidance of 105,000 to 115,000 ounces, it told shareholders.
The firm said it expects gold grades to increase over the year as higher-grade production from new mining areas in the Higginsville Central area come online, and the Spargos open pit project starts producing later in the year.
Karora said its 2021 gold production and grades will be higher in the second half of the year compared to the first half, with all-in-sustaining-cost guidance of between US$985 to US$1,085 per ounce for fiscal 2021.
CEO Paul Andre Huet told investors that the firm delivered a “strong quarter” of production that was in line with its budget and previous six quarters of production.
“First quarter production is directly on track with our budget and in line with our previous six quarters of consistent production of approximately 25,000 ounces per quarter, despite planned open-pit sequencing mining slightly lower grades during the quarter,” Huet said in a statement.
The firm ended the quarter with C$76.7 million in cash, down slightly from the $79.7 million it had in the previous quarter.
“During the first quarter we invested heavily in preparing new, higher grade mining areas at Higginsville Central and Spargos, along with increased resource definition, grade control and exploration drilling to set us up for a very successful year,” Huet added.
“We also made investments during the first quarter to improve productivity with substantial mining fleet replacements and additions at Beta Hunt and Higginsville.”
The Toronto-based firm also closed its royalty transaction with Maverix Metals after making its final US$2.5 million payment in 1Q 2021.
“The reduction of royalties at Beta Hunt has not only improved our mining cost profile, but has truly opened the mine up to the tremendous series of exploration discoveries we have delivered since September,” Huet said.
“These include the very exciting and higher grade Larkin Zone, the significant extension to Western Flanks North, the 30C high-grade Nickel trough as well as the recently announced very high-grade Gamma/50C Nickel zone. With these new discoveries, we are executing on our plan to continue to grow Beta Hunt into a very large operation.”
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Story by ProactiveInvestors
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