Karora Resources Inc (TSE:KRR) (OTCMKTS:KRRGF) (FRA:5RN1) announced plans to double its annual gold production from 99,249 ounces in 2020 to a range of 185,000 to 205,000 ounces in 2024 at an all-in sustaining cost (AISC) of between US$885 and US$985 per ounce.
The company said its growth will be driven by increased output from its Beta Hunt underground mine plus production from its Spargos Reward and Higginsville Central areas.
“Our new growth plan doubles our ounce output, reduces costs and increases margins over three years. We are in a very strong position to deliver this plan funded from our current cash balance of almost $80 million and cash flow from operations during this period,” Karora Resources CEO Paul Huet said in a statement.
READ: Karora Resources hails first-quarter performance, which sets miner up for further growth
“Based on this robust plan, we also intend to refinance our existing $30 million debt facility to provide us with further flexibility over the coming years along with materially reducing our interest costs,” Huet added.
Karora noted that it expects to begin mining ore at Spargos in 3Q 2021. It added that the deposit remains open at depth, both along strike and down-dip with significant exploration potential identified by a recent Karora geological review.
As well, the company reported that it has completed 57,968 metres (m) of its planned 68,500m exploration drilling program to date in 2021, with drilling at Beta Hunt focused on resource definition while drilling at Higginsville was more directed towards greenfields exploration.
Karora Resources is now a "top tier" junior gold producer in Western Australia, having started its transformation - when known as RNC Minerals - with its purchase in 2019 of the Higginsville Gold Operations (HGO).
The group is focused on growing gold production and reducing costs at the integrated Beta Hunt Gold Mine and the Higginsville mine and its associated treatment facility.
At Beta Hunt, a robust gold mineral resource and reserve is hosted in multiple gold shears, with gold intersections along a 4 kilometres strike length remaining open in multiple directions.
Contact Sean at sean@proactiveinvestors.com