Oliver Turner, VP of Corporate Development at Karora Resources (TSX:KRR – OTCQX:KRRGF) joins us to review the Q3 2022 operations and some guidance for 2023 as it relates to their gold and nickel operations in Western Australia. Third quarter 2022 consolidated gold production was a record 38,437 ounces, beating the previous record set in Q2 by 25%. Production for the first three quarters of 2022 was 96,578 ounces, placing Karora in a strong position to deliver on improved full year consolidated 2022 gold production guidance of 120,000 to 135,000 ounces. Adjusted earnings of $6.6 million, or $0.04 per share for the third quarter of 2022, increased by $2.0 million compared to the prior quarter and consolidated all-in-sustaining-costs (AISC) per ounce sold improved to US$1,069, a 10% decrease compared to second quarter 2022 AISC of US$1,190, and a 23% decrease over the first quarter AISC of US$1,396.

We review the aggressive growth plans for production over the next few years, as the company has now got a 2^nd mill in operations,  and has ongoing work developing it’s twin decline ramp into the Beta Hunt mine, which will allow more throughput through the mill, and projected guidance for 150,000 – 170,000 ounces for 2023, and then 185,000-205,000 ounces  by 2024.  80% of the producing operations will continue to come from the Beta Hunt gold-nickel mine, and the balance will come from the Higginsville Gold Operations and the new contributions from the Spargos deposit which just came online in Q4 of 2021.   One area that may positively impact cost estimates is the increasing value of the nickel as co-credit to the gold at Beta Hunt, and we spend some time reviewing the PEA put out for a “nickel mine within a gold mine” based on the exploration and development success at the 30C & 50C & 4C nickel showings being referred to as the Gamma Block, south of the Gamma Fault.

We wrap up having Oliver reviewing the exploration success at Beta Hunt and Higginsville from the $20 million exploration program in 2022, which was the largest drill program at all projects in over 12 years.  There were several new or developing key areas of interest at multiple properties as well as some as new discovery at the Mason Zone extending the mineralization around the Western Flanks area, that we dive into for more details.

Please email us with any questions for Oliver regarding Karora Resources.  Our email addresses are Fleck@kereport.com and Shad@kereport.com.

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