Karora Resources posts record gold production in Australia in 2021
(Kitco News) - Karora Resources (TSX: KRR) today announced record annual consolidated gold production of 112,814 ounces for 2021 from its Beta Hunt and Higginsville mines in Western Australia, at the upper end of annual guidance range of 105,000 – 115,000 ounces.
The company's 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.
According to the company's statement, initial work on the second decline at Beta Hunt - an integral component of its growth plan - is underway. In addition, Karora said it expects the contractor selection process for the second portal and upper portion of the second decline to be completed in the first quarter.
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Importantly, Karora also noted that 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.
Chairman and CEO Paul Andre Huet commented, "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."
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 in Western Australia.