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Operations

Overview

Karora’s primary gold producing operations are its 100% interests in the  Beta Hunt Mine, the Higginsville Gold Operations (“HGO”) and Spargos Gold Mine, located in Western Australia approximately 60 kilometres from Kalgoorlie along the prolific Norseman-Wiluna Greenstone Belt.  

Karora is targeting gold production of 185,000 - 205,000 ounces annually by 2024 through its self-funded organic growth plan. The growth capital required (outlined below) is carefully phased over a three-year period to allow for consistent free cash flow generation during the expansion.

Karora acquired the HGO operations on June 10, 2019, which is comprised of a central 1.6 million tonnes per annum (“Mtpa”) gold treatment plant, a large historical resource inventory and a substantial portfolio of gold tenements, including open pit and underground mines. The treatment plant is fed by material from the Beta Hunt Mine, Higginsville mining operations and the Spargo's Gold Mine, which was brought into production in late 2021.

In July 2022, Karora acquired a second gold processing facility, the Lakewood Mill located near Kalgoorlie, Western Australia, approximately 60 kilometres from the Beta Hunt Mine. The addition of Lakewood increased Karora's nominal processing capacity to approximately 2.6 Mtpa (1.6 Mtpa at Higginsville and 1.0 Mtpa at Lakewood) and significantly de-risks our growth plan to increase gold production.

Karora continues to focus on enhancing the operational synergies between its operations as well as exploring additional opportunities in the region. 

Karora Consolidated Gold Mineral Resources as of January 31, 2022

Mineral resources Measured Indicated Measured & Indicated Inferred
  Kt g/t Koz Kt g/t Koz Kt g/t Koz Kt g/t Koz
Beta Hunt 628 2.3 46 12,583 2.7 1,079 13,210 2.6 1,124 9,426 2.6 786
Higginsville 15,449 1.3 657 16,262 1.8 930 31,711 1.6 1,587 6,372 2.1 428
Total 16,077 1.5 703 28,845 2.1 2,009 44,921 1.9 2,712 15,798 2.5 1,214

 

Karora Consolidated Mineral Reserves as at September 30, 2020

Mineral reserve Proven Probable Proven & Probable
  Tonnes
kt
Grade
g/t
Ounces
koz
Tonnes
kt
Grade
g/t
Ounces
koz
Tonnes
kt
Grade
g/t
Ounces
koz
Beta Hunt 329 2.4 25 5,451 2.6 456 5,780 2.6 482
Higginsville 8,503 1.3 362 9,249 1.6 483 17,752 1.5 845
Total 8,832 1.4 387 14,700 2.0 940 23,531 1.8 1,327

 

Detailed Footnotes relating to Mineral Resource Estimates as at January 31, 2022

  1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.
  2. The Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Mineral Reserves.
  3. The Mineral Resource estimates include Inferred Mineral Resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is also no certainty that Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves once economic considerations are applied.
  4. The Gold Mineral Resource are estimated using a long-term gold price of US$1,600/oz with a US: AUD exchange rate of 0.70.
  5. Gold Mineral Resources were estimated using variable cut-off grades considering variable operational costs: Beta Hunt and Higginsville Underground (Chalice, Trident and Aquarius) - 1.3g/t, Higginsville Open Pits (excluding Mt Henry Project) – 0.5g/t, Mt Henry Project – 0.4g/t, Spargos uses a 0.5 g/t Au cut-off grade above 300mRL and 1.6g/t below 300mRL.
  6. To best represent "reasonable prospects of eventual economic extraction" the mineral resource for open pits has been reported within optimized pit shells at A$2,285 (US$1,600) and, for underground resources, areas considered sterilized by historical mining are depleted from the Mineral Resource.
  7. Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.

Detailed Footnotes relating to Mineral Reserve Estimates as at September 30, 2020

  1. The Gold Mineral Reserves are estimated using a long-term gold price of US$1,400/oz with a US: AUD exchange rate of 0.70.
  2. Cut-off grades for open-pit mineral reserves vary from 0.50g/t to 0.85g/t. The cut-off grade takes into account dilution, mine recovery and operating mining, processing/haulage, sustaining capital and G&A costs. Dilution and recovery factors varied by deposit.
  3. At Beta Hunt, underground mineral reserves are reported at a 1.6g/t incremental cut-off grade.At Higginsville, underground mineral reserves cut-off grades vary between 1.6g/t (modified and diluted grade) to 2g/t (modified/diluted grade). The cut-off grade takes into account Operating Mining, Processing/Haulage and G&A costs, excluding capital.
  4. The Mineral Reserve is depleted for all mining to September 30, 2020.
  5. Mineral Reserve tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding.