Other Mining Stocks 2022

[MikeGold]

KRR rocks…

Karora Resources Announces Beta Hunt Second Decline Progressing Ahead of Schedule, the Discovery of a New Shear Zone and New Drilling Results Including 198.5 g/t over 4.5 metres

TORONTO, May 24, 2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) (“Karora” or the “Corporation”) is pleased to announce that development of the second decline at Beta Hunt is tracking on cost and ahead of schedule with the estimated completion date now brought forward to Q1 2023 from mid-2023. The second decline at Beta Hunt is integral to Karora’s production growth plan to double throughput at Beta Hunt to 2 Mtpa and increase gold production to between 185,000 and 205,000 ounces by 2024.

• 198.5 g/t over 4.5 metres (AW17LN-01AE);
• 18.6 g/t over 15.0 metres (AF-AZDDC1-11AE); and
• 18.3 g/t over 4.0 metres (AW-AZDDC1-02AR).

Interval lengths are downhole widths. Estimated true widths cannot be determined with currently available information

Results from the surface drilling program also supports the interpretation of a newly discovered shear zone named ‘Sorrenson’, located to the east and parallel to A Zone and Western Flanks. The discovery of the Sorrenson shear zone follows the success of the Larkin and Fletcher shear zone discoveries, adding to the rapidly expanding mineralized system at Beta Hunt.

Paul Andre Huet, Chairman & CEO, commented: "I am thrilled with the progress made to-date by our teams to significantly progress development of the second decline ahead of schedule at the Beta Hunt Mine. The efforts to secure the DMIRs permits followed by rapid execution of our decline development plan, all while tracking on budget, is a tremendous achievement in light of the current inflationary environment negatively impacting many operations and development projects across our sector. A job well done.

I am also extremely pleased with the drilling results at Western Flanks, A Zone North, Fletcher and the newly interpreted Sorrenson shear zone which further validates the tremendous growth potential of Beta Hunt. With our aggressive exploration drill program, we continue to identify new shear zones and, as exemplified with the success of Larkin, convert them into resource inventory. The continued discovery of these new shear zones is one of many reasons we are excited about the long-life potential of the Beta Hunt operation.

Overall, we continue to build upon the world class exploration potential of Beta Hunt, while our development teams execute on our second decline plans to double throughput to 2 Mtpa."

Exploration drilling at Western Flanks returned significant high grade results of 198.5 g/t over 4.5 metres in hole AW17LN-01AE in drilling designed to test the northern extension of the zone and 18.6 g/t over 15.0 meters in hole AF-AZDDC1-11AE and 18.3 g/t over 4.0 metres in hole AW-AZDDC1-02AR in drilling designed to support and expand the existing Mineral Resource.

Recent exploration drill results at A Zone North include a 20.3 g/t over 2.0 metres intercept in hole SAZ-002-AE supporting A Zone North’s extension. Importantly, this extension is proximal to the location of the second decline and is expected to provide early access to potential near-surface mining blocks in support of the growth plan.

Beta Hunt Second Decline Progress

Following final approvals received from Department of Mines, Industry Regulation and Safety (“DMIRS”) for the surface collaring and box cut development work, decline development from underground has advanced approximately 500 metres since commencement, with the main vent access drive on the 801 level being within 15 metres of completion. Surface portal construction is approximately 70% complete with surface decline development expected to commence Q3 2022.

Beta Hunt Drilling Update

From January 1, 2022 to April 30, 2022, a total of 49 gold resource definition and exploration holes were drilled at Beta Hunt for 10,647 metres. Drilling focused on testing A Zone North, extending and infilling Western Flanks and testing the down-dip position of the Fletcher Zone. Encouraging initial drilling results were received from the newly interpreted mineralized shear zone known as Sorrenson, which is located to the east and parallel to A Zone and Western Flanks. Figure 2 below summarizes significant drilling results and their location over this period.

Gold Focused Drilling

Western Flanks: As part of the program to upgrade the existing Inferred Mineral Resource, drilling targeted both Western Flanks Central and South. Results support, and in some cases expand, upon the existing interpreted mineralization. For example, hole AF-AZDDC1-11AE returned 18.6 g/t over 15.0 metres (See figure 3).

Drilling also tested the northern strike extension of Western Flanks with drill hole AW17LN-01AE returning 198.5 g/t over 4.5 metres. The intersection occurs in the footwall of Western Flanks and is associated with pyrrhotite-rich sediment and altered porphyry. Further follow-up drilling is planned for this area. Significant results1 from the Western Flanks resource definition and exploration drilling are listed below:

• AW17LN-01AE: 198.5 g/t over 4.5 metres
• AF-AZDDC1-11AE: 18.6g/t over 15.0 metres
• AW-AZDDC1-02AR: 18.3 g/t over 4.0 metres
• WW405DD-09AR: 2.5 g/t over 11.8 metres
• WW405DD-12AR: 9.2 g/t over 3.0 metres

1. Interval lengths are downhole widths. Estimated true widths cannot be determined with currently available information

A Zone North: Significant results were returned from A-Zone North and continue to provide encouragement for an extension to the current mineral resource and the opportunity to exploit mineralization from the new second decline. Significant results1. include:

• SAZ-002-AE: 20.3 g/t over 2.0 metres
• SAZ-008-AE: 2.1 g/t over 10.0 metres

1. Interval lengths are downhole widths. Estimated true widths cannot be determined with available information

Sorrenson: Initial results received from testing the interpreted Sorrenson shear zone support its existence including 1.5g/t over 7.6 metres (downhole) in drill hole SSOR-05-AE which validates the mineralization thesis. Drilling is being conducted on three, 400 metre spaced lines with additional results pending from the program.

Fletcher: Drilling on the Fletcher Shear Zone continues to support a continuous mineralized shear zone with an intersection of 1.5 g/t over 4.0 metres (downhole) in drill hole AF-AZDDC1-11AE, over 130 metres down dip from the nearest intersection, extending the mineralized zone at depth. Further drilling is planned at Fletcher to test continuity of the zone and its potential as another major shear zone at Beta Hunt.

Nickel and Sampling Update

Nickel drilling re-commenced in the Beta Block targeting the 30C and 25C (south of the 30C), with an update to be provided once results are received and interpreted.

A re-sampling program of historical holes is underway at Beta Hunt, yielding additional impressive intersections in the Mason shear zone compared to those previously recorded (located to the West of the Larkin zone, see Figure 2). The results1. include:

• Historic drill hole BE19-296: 2.6g/t over 9.8 metres (previously 3.5g/t over 0.8 metres)
• Historic drill hole BE19-285: 1.2 g/t over 17.5 metres, including 2.4g/t over 3.8 metres (previously 2.0g/t over 6.5 metres)

1. Interval lengths are downhole widths. Estimated true widths cannot be determined with currently available information

Compliance Statement (JORC 2012 and NI 43-101)

The disclosure of scientific and technical information contained in this news release has been reviewed and approved by Stephen Devlin, FAusIMM, Group Geologist, Karora Resources Inc., a Qualified Person for the purposes of NI 43-101.

At Beta Hunt all drill core sampling is conducted by Karora personnel. Samples for gold analysis are shipped to SGS Mineral Services of Kalgoorlie for preparation and assaying by 50 gram fire assay analytical method. All gold diamond drilling samples submitted for assay include at least one blank and one Certified Reference Material (“CRM”) per batch, plus one CRM or blank every 20 samples. In samples with observed visible gold mineralization, a coarse blank is inserted after the visible gold mineralization to serve as both a coarse flush to prevent contamination of subsequent samples and a test for gold smearing from one sample to the next which may have resulted from inadequate cleaning of the crusher and pulveriser. The lab is also required to undertake a minimum of 1 in 20 wet screens on pulverised samples to ensure a minimum 90% passing at -75µm. Samples for nickel analysis are shipped to SGS Australia Mineral Services of Kalgoorlie for preparation. Pulps are then shipped to Perth for assaying. The analytical technique is ICP41Q, a four acid digest ICP-AES package. Assays recorded above the upper detection limit (25,000ppm Ni) are re-analyzed using the same technique with a greater dilution (ICP43B). All samples submitted for nickel assay include at least one Certified Reference Material (CRM) per batch, with a minimum of one CRM per 20 samples. Where problems have been identified in QAQC checks, Karora personnel and the SGS laboratory staff have actively pursued and corrected the issues as standard procedure.

About Karora Resources

Karora is focused on increasing gold production to a targeted range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations (“HGO”) in Western Australia. The Higginsville treatment facility is a low-cost 1.6 Mtpa processing plant, expanding to a planned 2.5 Mtpa by 2024, which is fed at capacity from Karora’s underground Beta Hunt mine and Higginsville mines. At Beta Hunt, a robust gold Mineral Resource and Reserve are hosted in multiple gold shears, with gold intersections along a 4 km strike length remaining open in multiple directions. HGO has a substantial Mineral gold Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. The Company also owns the high grade Spargos Reward project, which came into production in 2021. Karora has a strong Board and management team focused on delivering shareholder value and responsible mining, as demonstrated by Karora’s commitment to reducing emissions across its operations. Karora’s common shares trade on the TSX under the symbol KRR and also trade on the OTCQX market under the symbol KRRGF.

[taff]

TORONTO, May 24, 2022 (GLOBE NEWSWIRE) – Karora Resources Inc. (TSX:KRR; OTCQX:KRRGF) (“Karora” or the “Corporation") is pleased to announce that it has entered into an agreement with Haywood Securities Inc. (“Haywood”), to act as co-lead underwriter and sole bookrunner, and Cormark Securities Inc. (together with Haywood, the “Co-Lead Underwriters”), to act as co-lead underwriter, on their own behalf and on behalf of a syndicate of underwriters (together with the Co-Lead Underwriters, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a bought deal basis, 10,417,000 common shares in the capital of the Corporation (the “Common Shares”) at a price of C$4.80 per Common Share (the “Issue Price”) for gross proceeds to the Corporation of C$50,001,600 (the “Offering”).

In addition, the Corporation has agreed to grant the Underwriters an option to purchase up to an additional 15% of the number of Common shares sold under the Offering at a price per Common Share equal to the Issue Price, on the same terms and conditions as the Offering, exercisable at any time, in whole or in part, until the date that is 30 days following the closing of the Offering.

The Corporation intends to use the net proceeds received from the Offering to fund a portion of the cash consideration due at a closing of the Lakewood Mill acquisition as further described in the Corporation’s news release dated today (which transaction is subject to the satisfactory completion by the Corporation of its due diligence and other applicable closing conditions), advancement of the Corporation’s nickel exploration and development program at Beta Hunt, and for working capital and general corporate purposes.

The Common Shares will be offered by way of a short form prospectus to be filed in all provinces of Canada (other than Quebec). The Common Shares will also be sold to U.S. buyers on a private placement basis pursuant to an exemption from the registration requirements in Rule 144A of the United States Securities Act of 1933, as amended, and other jurisdictions outside of Canada provided that no prospectus filing or comparable obligation arises.

The Offering is scheduled to close on or about June 15, 2022 and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.

[easymillion]

Note: Bolding is mine.

Karora Resources Announces Agreement to Acquire the Lakewood Gold Mill and Significantly De-Risk Growth Plan

TORONTO, May 24, 2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) (“Karora” or the “Corporation”) is pleased to announce that it has entered into a binding agreement to acquire the operating, fully permitted 1.0 Mtpa Lakewood Mill gold processing facility located near Kalgoorlie, Western Australia, approximately 60 kilometres from the Beta Hunt Mine. The acquisition price of A$80 million is comprised of A$70 million in cash and A$10 million in Karora shares. Karora successfully tolled Beta Hunt material through the Lakewood mill in Q1 2022, achieving 94% Au recovery.

The transaction is subject to, among other conditions, satisfactory completion by Karora of its due diligence, Toronto Stock Exchange approval and Australian regulatory approval. Closing will occur three business days following the satisfaction or waiver of such conditions. The A$10 million in Karora share consideration will be satisfied by the issuance of shares based on a 20-day volume weighted average share price on the TSX and applicable currency exchange rates. Karora has paid a A$500,000 deposit to the seller to be deducted from the cash portion of the purchase price due at closing.

Paul Andre Huet, Chairman & CEO, commented: "Closing the acquisition of the Lakewood Mill would be a transformational step forward for Karora, similar to the Higginsville mill acquisition in June 2019. Not only is the Lakewood mill closer to Beta Hunt than Higginsville, but the acquisition would provide several immediate strategic and operating benefits to Karora.

First and foremost, it is anticipated that the acquisition would immediately de-risk our growth plan to increase gold production to between 185,000 and 205,000 ounces by 2024, by eliminating the procurement, schedule and construction risks associated with a major expansion of Karora’s Higginsville Mill. In the current highly inflationary capital environment, which is negatively impacting many of our peers, we expect that this acquisition would take that risk completely off the table. We would also reduce our reliance and exposure to a single milling solution, further de-risking our future growth.

Secondly, upon closing, the addition of a second mill is anticipated to immediately increase our nominal processing capacity by over 60% from 1.6 Mtpa to approximately 2.6 Mtpa. In addition, a second ball mill is already in place at the Lakewood site that is expected to increase capacity to 1.2 Mtpa once commissioned. In the first quarter, we toll milled 60,000 tonnes of Beta Hunt material through the Lakewood mill yielding a 94% recovery rate. This provides us with a high degree of comfort regarding the metallurgical performance of our material through this mill.

The addition of a second operating mill brings with it significant potential toll milling capacity - we intend to fill short-term spare capacity through toll milling arrangements at one or both of the Higginsville Mill and Lakewood Mill until the Beta Hunt expansion is completed. Upon completion of acquisition of the Lakewood Mill, we will begin to evaluate mill optimization opportunities to maximize the efficiencies at both mills as a single, significantly de-risked business.

The expansion to double production from Beta Hunt to 2 Mtpa is well underway and, as previously announced this morning, the development of the second decline is tracking ahead of schedule and on budget.

Lastly, and certainly not least, the future potential to expand the Higginsville mill to 2.5 Mtpa on its own remains, should we find the requisite feed sources and once the current inflationary environment has passed. With this acquisition, we expect that our milling bottleneck days will be well and truly in the rear-view mirror. I am thrilled to be able to announce this transaction to our shareholders."

About Karora Resources

Karora is focused on increasing gold production to a targeted range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations (“HGO”) in Western Australia. The Higginsville treatment facility is a low-cost 1.6 Mtpa processing plant, expanding to a planned 2.5 Mtpa by 2024, which is fed at capacity from Karora’s underground Beta Hunt mine and Higginsville mines. At Beta Hunt, a robust gold Mineral Resource and Reserve are hosted in multiple gold shears, with gold intersections along a 4 km strike length remaining open in multiple directions. HGO has a substantial Mineral gold Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. The Company also owns the high grade Spargos Reward project, which came into production in 2021. Karora has a strong Board and management team focused on delivering shareholder value and responsible mining, as demonstrated by Karora’s commitment to reducing emissions across its operations. Karora’s common shares trade on the TSX under the symbol KRR and also trade on the OTCQX market under the symbol KRRGF.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains “forward-looking information” including without limitation statements relating to the Karora’s production guidance, the completion the acquisition of the Lakewood Mill gold processing facility, the de-risking of Karora’s growth plan, the anticipated benefits of the Lakewood Mill gold processing facility, the potential of the Beta Hunt Mine, Higginsville Gold Operation, the Aquarius Project and the Spargos Gold Project and the commencement of mining at the Spargos Gold Project.
(Karora Resources Announces Agreement to Acquire the Lakewood Gold Mill and Significantly De-Risk Growth Plan - May 24, 2022 )

I usually add incrementally while accumulating, and when trading around a core I like a strategy of “Add low, Trim High”, FWIW.

[easymillion]

Eloro Is Drilling Out An Exceptional Polymetallic Deposit At Iska Iska
by @Goldfinger on 25 May 2022, 13:21
Eloro Resources (TSX-V:ELO, OTC:ELRRF) continues to prove up a very large silver-tin polymetallic deposit at its Iska Iska Project in Bolivia. Hole DSBU-07 intersected wide intervals of polymetallic mineralization including 28.84 grams/tonne silver, 0.69% zinc, 0.62% lead, and 0.13% tin over 208.47 meters. The four holes reported this morning expand the higher grade mineralized zone at Santa Barbara to the south and southwest:

Dr. Osvaldo Arce commented on this morning’s results:

“Recent drill assay results from the Santa Barbara zone continue to expand a large and robust tin-silver polymetallic likely feeder zone located to the southeast of the Santa Barbara breccia pipe that is wide open at depth . Holes DSBU-4, DSBU-07 and DSBU-08 encountered numerous intervals of polymetallic oxide and sulphide mineralization that confirm multiple mineralizing events that occurred during the Miocene , which is an important feature of other large polymetallic deposits in the Eastern Andes of southern Bolivia.”

For the next 6-8 weeks, Eloro is focused on resource definition drilling to complete the drilling required to produce a maiden resource estimate for the Santa Barbara Area in Q3 of this year. Three drill rigs are at Santa Barbara and one rig is doing exploration drilling at the El Porco Area to the south of the main Santa Barbara Deposit Area.

The trend of drill results at Iska Iska is also encouraging with the 3 best holes drilled at the project to date reported in 2022:

Eloro is entering an important next few months that will include the following events (not particularly in this order):

• Metallurgical testing results
• Maiden Resource Estimate for the Santa Barbara Area
• Ongoing drill results

There is also the potential for Eloro to uplist from the OTC to an AMEX listing in the United States, however, there is no set timeline for an uplisting. The metallurgy test results will go a long way towards derisking Iska Iska and proving to the market just how much of the project’s massive metal endowment is recoverable. I also expect that the MRE will exceed the market’s current ~300 million tonnes consensus estimate.

Like many junior mining stocks today, Eloro’s chart is deeply oversold and shows a potential double-bottom at last week’s low ($3.09 vs. the December low at $3.08):

ELO.V (Daily)

Eloro is well funded after closing a C$9.8 million financing last week that gives the company ample capital for the remainder of 2022. I have been a buyer of ELO shares in recent weeks and I continue to view Iska Iska as an exceptional polymetallic deposit with potential world class scale.

Disclosure: Author owns ELO.V shares at the time of publishing and may choose to buy or sell at any time without notice. The author of this article has been compensated for marketing services by Eloro Resources Ltd.

DISCLAIMER: The work included in this article is based on current events, technical charts, company news releases, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.
(Eloro Is Drilling Out An Exceptional Polymetallic Deposit At Iska Iska, by @Goldfinger)

[easymillion]

Just curious how many are accumulating NFGC (NFG.CA) and have seen this review/assessment?

New Found Gold project PEA
The most important project issues are laid out in the attached document. Company website here has the share ownership details. = https://newfoundgold.ca/
THE life cycle of an exploration project reviewed. NOTICE the time frame for the discovery part of the cycle, 2 yrs more or less.
https://www.visualcapitalist.com/visualizing-the-life-cycle-of-a-mineral-discovery/
For those that want LOTS more project detail, click on the technical report on the web site, 220 pages…
I agree with Sprott that there is obvious “Potential” for 50 - 100,000,000 ounces eventually, BUT the following economic details are THE killer.
I wrote a couple of papers decades ago on “All Gold in the Ground is not created Equal”, but so long ago time has wiped them off the net.
The work was a multiple page Detailed summary of the industry factors of finding costs, development costs, operating costs on numerous producing properties at the time.
I need to preface the following information with a little background. I was taught how to audit ore reserves by my old associate mining engineer a couple decades ago.
I had the opportunity to do it on a 40 M. ton 2 gm. deposit in B.C. Canada, with him, and hired a great PHD geostatistical mathematician to evaluate it in house for me.
It had 100,000 ft. of drilling done, with a 5,000 ton bulk sample mined out to evaluate the calculated grade. I put four drills on it and did 30,000 ft. of drilling in 30 days for confirmation.
In order to make absolutely certain that his computer model was correct, I had the reserves calculated five other times by hand and with other computer guys.
We spent $15 Mill. on a bankable feasibility and two foot thick book EIS. Political risk in British Columbia killed it.
What NFG is doing with TEN drills and over a hundred people to process the core is the largest most aggressive effort I have ever seen.
What the project indicates, but the company cannot say, is what the likely economics are to be, THE MOST important factor!
My preliminary economic evaluation, "If the deposit is there as indicated and delineated with exploration, WHAT IS IT WORTH?

1. Open pitting of One Oz. (more or less), FREE gold has never been seen, as far as I recall. With no low grade disseminated indicated, NO CYANIDE CIRCUIT required.
   With power and water readily available, and the labor force 10 miles away at Gander, the production issues are non-existent. With no cyanide, permitting is a non issue also.
2. One Oz free gold is thus $1,800 / Ton.
3. Rough estimate of crushing, grinding, gravity circuit cost of LESS than $200 / ton.
4. The open pit mining waste Ore ratio on the Keats deposit, which is initially near the surface, can obviously, eventually be quite large, but initially along with the other discoveries so far,
   I guess may ultimately over time may be as large as 20 - 30 to One before going underground.

Waste rock look’s to be cheap, easy digging, maybe no blasting? Predict the price of diesel in Cdn. dollars a few years out???
5. The first million tons thus will generate an ESTIMATED: 1,000,000 tons X $1,600 / ton = $1,600,000,000 With an initial ten yr. life $160,000,000 / yr.
The mineable / diluted / recoverable numbers can of course cut the raw estimate here by 10 - 20%, but the net is still magnificent.
6. There is still $100 Million in the bank, and ten drills running so the momentum for adding more ounces on many more deposits is a certainty!! IMHO.
7. Their professional on site geologists no doubt have the Keats data loaded into a Leapfrog model, so dumping that into an ore reserve calculation program is soon to come.
As the economics are assured to be very very good, and CAPEX should be small, an attractive debt financing for CAPEX should be easy, thus no more share dilution.
Production will not be an issue, as hiring a contractor for the mining and a crew to run the mill with the Newfoundland workforce nearby is easy. No huge expensive remote camp required!!
8. The Canadian market legally allowed six plus short players to hit the stock almost every day to keep it pounded down off the old temporary high. Accumulation seems to be a good idea. IMHO.
9. ANY stock that has GOLD in its name will be pounded down all summer, but the Gold market has had a dramatic change recently, for the better, so maybe the BIS and pal’s pounding it down will get somewhat mitigated by the accumulators? See the red dotted line chart here. 321gold: 40 Year Gold Seasonal 1976-2015
“Be right and sit tight” applies.

[TradeRich]

NSRPF, ELO, & NFG
Thanks Easy

[Hurricane_Rick]

I bought back some KRR at $4.86 this week. These were shares that I sold > $7.00 a few weeks back (yay me!). The thing I love about KRR is that while I love the stock, I’m not obsessed with it and attribute artificial targets to where I think it’s going…a mistake I’ve made many times in other stocks. Not having that personal affinity to it makes it much easier to swing trade and let shares go while being more patient to get better prices when I buy back in.

[easymillion]

Excellent buy back Rick! My best recent buy back was higher at C$5.03 equivalent, but I put in my order weeks ago using KRRGF. So while I do buy replenishment shares to my core position, I use chart projections and I don’t monitor the price that closely. I don’t always catch the very lowest price possible, but I’m content to sell and buy at a comfortable margin whenever possible. I avoid being pushed out of long term holds by keeping a core position on some selected stocks. These are usually the cash flow positive stocks and some streamers. I was mostly pushed out selling on the way up with DeGrey. I sold way too many on the way up. I still have a small position in DGMLF that are “free” shares. That experience showed me the value of holding a core position on some stocks. Doesn’t always work out as we all well know! Use whatever strategy works well for you.

[taff]

I did the same at $4.76 couldn’t resist, I’ve been adding to many of my stocks slowly averaging down hoping sometime soon we hit the market bottom. Everything looks like a great buy but then the market drops even further. One thing I’ve learnt from many here is patience and thank you all for sharing especially the guys who have been here for many years, greatly appreciated.

[cornhuskergold]

Trillion receiving some PM market love via an interview of the CEO by TFMetals:
https://twitter.com/TrillionEnergy/status/1532450608845930520?s=20&t=LxVuotVwxB0DwEXJ3JW79g

[easymillion]

Value Play?

Mr. Vernon Baker reports:

TORONTO, ON / ACCESSWIRE / June 10, 2022 / Jaguar Mining Inc. (“Jaguar” or the “Company”) (TSX:JAG) announces that the Toronto Stock Exchange (the " TSX ") has accepted Jaguar’s notice to make a normal course issuer bid (the " Bid ") to purchase for cancellation up to 3,623,640 common shares in the capital of the Company (“Common Shares”) in total, being 5% of the issued and outstanding Common Shares as at the date of Jaguar’s notice to the TSX, to be transacted through the facilities of the TSX. The actual number of Common Shares that may be purchased pursuant to the Bid will be determined by management of the Company (“Management”). The Bid will commence on June 15, 2022 and will terminate on June 14, 2023, or such earlier time as the Bid is completed or terminated at the option of Jaguar.
(http://www.jaguarmining.com/)

[taff]

Any thoughts on this news from KRR?

TORONTO, June 9, 2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) (“Karora” or the “Corporation”) is pleased to announce it has agreed to refinance its current credit facility with a lower-cost senior secured $80 million Credit Agreement with Macquarie Bank Limited (“Macquarie”). The Credit Agreement provides for a $40 Million term loan and a $40 million revolving credit facility, both bearing an interest rate of Canadian Dealer Offered Rate +4.5% per annum on the drawn principal and standby fee of 1.5% per annum on the undrawn revolving credit facility. The term of the Credit Agreement is 24 months with an option for annual renewal thereafter. The proceeds of Credit Agreement will be used to refinance the Corporation’s existing $30 million credit facility which bears an interest rate of TD prime rate plus 6.05% per annum, and for general working capital purposes. Closing of the Credit Agreement is subject to conditions precedent, including payment of customary upfront fees that are typical for a financing of this nature. Karora expects closing to occur during June 2022.

[easymillion]

@taff

Any thoughts on this news from KRR?

It is a much better refinance replacing the existing $30 million credit facility which bears an interest rate of TD prime rate plus 6.05% per annum. Always good to have finance available to attend to any unforseen circumstances. It also confirms Karora is a very credit worthy Corporation in these very uncertain times.

[easymillion]

TORONTO, June 14, 2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) (“Karora” or the “Corporation”) is pleased to announce that it has closed its previously announced bought deal financing of 14,375,000 common shares of the Corporation (the “Common Shares”), at a price of $4.80 per Common Share (the “Issue Price”), for gross proceeds to the Corporation of $69,000,000 (the “Offering”), including the exercise in full of the Underwriters’ over-allotment option. The Offering was underwritten on a “bought deal” basis by a syndicate of underwriters, co-led by Haywood Securities Inc., as co-lead underwriter and sole bookrunner, and Cormark Securities Inc., as co-lead underwriter, and including Canaccord Genuity Corp., Desjardins Securities Inc., Red Cloud Securities Inc., and Stifel Nicolaus Canada Inc. (collectively, the “Underwriters”).

The Corporation intends to use the net proceeds received from the Offering to fund a portion of the cash consideration due at a closing of the Lakewood Mill acquisition as further described in the Corporation’s news release dated May 24, 2022 (which transaction is subject to the satisfactory completion by the Corporation of its due diligence and other applicable closing conditions), advancement of the Corporation’s nickel exploration and development program its Beta Hunt Mine, and for working capital and general corporate purposes.

The Corporation filed a final short form prospectus (the “Prospectus”) in all of the provinces of Canada, except Québec, pursuant to National Instrument 44-101 – Short Form Prospectus Distributions to qualify for distribution of the Common Shares offered pursuant to the Offering. Copies of the Prospectus and documents incorporated by reference therein are available electronically on SEDAR (www.sedar.com) under Karora’s issuer profile.

The securities offered in the Offering have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor will there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About Karora Resources

Karora is focused on increasing gold production to a targeted range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations (“HGO”) in Western Australia. The Higginsville treatment facility is a low-cost 1.6 Mtpa processing plant, expanding to a planned 2.5 Mtpa by 2024, which is fed at capacity from Karora’s underground Beta Hunt mine and Higginsville mines. At Beta Hunt, a robust gold Mineral Resource and Reserve are hosted in multiple gold shears, with gold intersections along a 4 km strike length remaining open in multiple directions. HGO has a substantial Mineral gold Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. The Corporation also owns the high grade Spargos Reward project, which came into production in 2021. Karora has a strong Board and management team focused on delivering shareholder value and responsible mining, as demonstrated by Karora’s commitment to reducing emissions across its operations. Karora’s common shares trade on the TSX under the symbol KRR and also trade on the OTCQX market under the symbol KRRGF.

Cautionary Statement Concerning Forward-Looking Statements

This news release contains “forward-looking information” including without limitation statements relating to the anticipated use of proceeds of the Offering and the completion of the acquisition of the Lakewood Mill.

[cornhuskergold]

Gold miners getting hit from:

1. Economy slowing so many commodity prices have fallen off the recent highs.
2. Inflation is causing margins to shrink even farther. Even with gold / silver prices being historically pretty high, miners are once again getting squeezed in terms of profit. This is exactly what happened after the 2011 commodity high up to about 2016. So miners are a “SELL”. Even the major producers are getting hit.

On the other hand, the GDXJ chart sort of looks to me like we are in a capitulation phase.

The FED is tightening. The economy is slowing. By fall / late 2022 it seems more and more probable that the FED will pivot and start cutting rates. This should start PM prices rising again and producers should respond. The risk is inflation, even if it slows due to the economy slows, will come back again with rate cuts and any other government stimmies. Will the PM prices keep up and exceed inflation? At some point they will but it is hard to say if they will during 2nd wave of inflation when it comes.

[easymillion]

A couple of my favorite holdings hit 52 week lows:

• Kinross Gold NYSE:KGC shares hit a yearly low of $3.83. The stock was down 0.38% on the session.

• New Found Gold AMEX:NFGC stock achieved a new 52-week low on Friday morning, hitting $4.68 and moving up 1.01%.

Also

• Seabridge Gold NYSE:SA shares moved up 2.24% on Friday to hit a new 52-week low of $12.75, drifting up 2.24%.

I do not presently hold Seabridge at the present time.

Update: Kinross Gold Edges Up in US, Canada Trading as Provides Updates On Great Bear,
Manh Choh, Curlew Projects

BY MT Newswires

— 10:17 AM ET 06/28/2022

10:17 AM EDT, 06/28/2022 (MT Newswires) – Kinross Gold Corp. (KGC) said Tuesday that it is on schedule to release a maiden resource estimate for the Great Bear project in Ontario as part of the company’s 2022 year-end results.

The company, which at last look rose 1.5% on the NYSE and gained 1.7% on the TSX in early Tuesday trading, expects the estimate to consist of mostly inferred resources with some indicated resources. It has drilled 83,000 meters on the project and is on track to complete 200,000 meters of drilling on the LP Fault zone in 2022.

Meanwhile, Kinross said it expects to release the feasibility study at its 70%-owned Manh Choh project in Alaska as part of its second-quarter results. Initial production is targeted for the fourth quarter of 2024.

Kinross said underground drilling at the Curlew Basin project in Washington State continues to produce positive results, targeting a total mineral inventory of 1 million ounces of gold by year-end 2022.

[easymillion]

Karora News out, FYI.

Karora Resources Discovers New High-Grade Coarse Gold Occurrence at Beta Hunt...

[easymillion]

Did anyone listen in on Karora’s presentation this morning?
It was done very well and informative! The new slide deck should be posted in the next few days on the Karora website. I particularly liked the direction this company is headed.

[Hurricane_Rick]

I’m buying more KRR under $3.00 (Canadian). Company is very solid, expanding, profitable and buying shares back…clicking on all cylinders. Share price is primarily affected by weak gold price. The nickel credits are an added bonus.

[Hurricane_Rick]

Karora Resources: Too Cheap To Ignore

Aug. 31, 2022 9:28 AM ET[Karora Resources Inc. (KRR:CA)] [Karora Resources Stock: Too Cheap To Ignore (TSX:KRR:CA) | Seeking Alpha]
(https://seekingalpha.com/article/4538132-karora-resources-too-cheap-to-ignore?source=all_articles_title)

Summary

• Karora released its Q2 results earlier this month, reporting quarterly production of ~30,700 ounces of gold, a nearly 3% increase from the year-ago period despite significant headwinds.
• Unfortunately, while costs were up due to increased productivity and higher tonnes milled, costs were up sharply year-over-year, leading to a share decline in the stock.
• However, while most producers are seeing costs rise and stabilize without the benefit of growth or by-product credits, I would expect Karora’s AISC to dip back below $950/oz next year.
• So, given Karora’s industry-leading growth, industry-leading margins (post-2022) and continued exploration success, I see this pullback in the stock below US$2.20 as a gift.
  The Q2 Earnings Season was mixed for the Gold Miners Index (GDX), with satisfactory operational performance overshadowed by cost creep and cost overruns on projects from a few producers. These headwinds were worst in Western Australia, where labor tightness caused misses for several producers. While Karora Resources (OTCQX:KRRGF) managed through the headwinds, it wasn’t immune from inflationary pressures and labor tightness, pushing costs higher in H1 2022.

While this is disappointing and might have caused some to scratch Karora off their watchlists, it’s important to note that Karora is arguably one of the best-positioned producers to deal with these inflationary pressures and claw back lost margins. Unlike most of its peers, it has an industry-leading growth profile, continues to see productivity gains, and benefits from by-product credits. So, while this has led to short-term pain on the bottom line, I would not be surprised to see costs decline to record levels next year. Given Karora’s industry-leading growth coming from safe jurisdictions, I see this pullback below US$2.20 as a gift.

Beta Hunt Coarse Gold (Company Presentation)

Q2 Production & Revenue

Karora Resources released its Q2 results earlier this month, reporting quarterly production of ~30,7000 ounces of gold, a 12% increase sequentially and a 3% increase from the year-ago period. The culprit for the only slight improvement in production was COVID-19-related headwinds in Western Australia that exacerbated an already tight labor market, coupled with lower grades mined in the period at Beta Hunt [BH]. The good news is that the worst of these headwinds appears to be over as of April; the company reported record tonnes mined of ~290,000 ounces from a single decline at BH in Q2 (~1.16 million tonnes annualized), and we should see a much stronger finish to the year due to higher grades.

Karora - Quarterly Production (Company Filings, Author’s Chart)

Looking at COVID-19 case counts confirms that the worst is behind us, with Australian case counts having peaked and down sharply and an even more pronounced decline in Western Australia. Combined with higher grades, this should lead to a significant improvement in production in H2, and Karora’s increased production guidance (midpoint of 127,500 ounces vs. 122,500 ounces) suggests that we could see H2 production of 70,000+ ounces. Given that Karora has historically been quite conservative with guidance, I would not be surprised to see the company come in above 130,000 ounces for the year, beating its guidance mid-point by 2% or more.

Western Australia COVID-19 Cases (JHU CSSE Covid-19 Data)

Moving to sales, gold ounces sold declined in the period due to difficult year-over-year comps (more ounces produced than sold in Q2 2021), but by less than 0.1%. Fortunately, Karora benefited from a higher gold price in the period, allowing it to report a record quarterly revenue figure of C$73.6 million [US$58.9 million], a 6% increase from the year-ago period. The gold price will not be a tailwind in Q3 (Q2 gold price: $1,860/oz), but the higher production should offset this in Q3 and Q4.

Finally, it’s worth noting that while head grades were much lower, this was partially due to toll-milling ~51,000 tonnes of lower grade ore (1.34 grams per tonne gold) from BH as part of its due diligence process to acquire Lakewood. Hence, grades were artificially low in Q2, and the grade drop year-over-year is not a red flag. In fact, if exploration success continues, BH could see 2.9+ gram per tonne head grades post-2024 (Q2 2022: 2.14 grams per tonne gold) as higher-grade zones are mined.

Karora - Quarterly Revenue (Company Filings, Author’s Chart)

Costs & Margins

Looking at costs, Karora did a great job of improving costs on a sequential basis ($1,190/oz vs. $1,396/oz) even though it was still a very difficult quarter for its operations from a labor standpoint. This is evidenced by the spike in COVID-19 cases in April (above chart) and relatively high case counts, with additional pressure due to higher diesel costs, increased materials costs, and higher prices for other consumables. However, on a year-over-year basis, all-in-sustaining costs [AISC] jumped 19%, which might disappoint some investors.

Karora - AISC, Gold Price & AISC Margins (Company Filings, Author’s Chart)

While it’s easy to be negative about this sharp increase in costs that were slightly above the industry average cost increase, it’s important to note that the benefit of working in a prolific mining jurisdiction (Western Australia) combined with the border opening worked against it in Q2. However, it still reported respectable AISC margins of $670/oz (36.0%), and this is despite Karora being a relatively small producer that isn’t benefiting from the economies of scale it will once its second decline is complete (Q2 2023). For those unfamiliar, this will double mine production at BH to 2.0+ million tonnes per annum, with the possibility of 2.1+ million tonnes mined if productivity rates are maintained.

The good news is that, unlike most producers, Karora has a very clear path to clawing back all of its lost margins and then some, with the potential to report record low costs in FY2023. This is because it is benefiting from higher nickel production (increased by-product credits), it’s steadily increasing gold production, and it’s now going to see lower diesel costs with 1/90th the trucking distance for nickel. The reason is that it’s now hauling material to the Kambalda Mill next door vs. a nearly 400-kilometer trek to Leinster. Finally, diesel prices appear to have peaked, pointing to lower costs for regular operations as long as things don’t worsen.

Annual Gold Production & Forward Estimates (Company Filings, Author’s Chart & Estimates)

This is important because it means that while the average producer has seen costs spike ~15% vs. FY2020 levels in line with Karora, these producers don’t have the tailwinds in place to claw back these margins. The point is best displayed by the below chart, which shows that Karora’s costs should decline to $945/oz in FY2023 and $930/oz in FY2024 while the industry average all-in sustaining costs should only dip marginally from the FY2022 peak and then begin to trend back up due to sticky labor inflation in FY2024/FY2025. So, while many producers will see a $70/oz dip in margins if the gold price stays at current levels, Karora will see a 10%+ increase in margins even at $1,750/oz gold.

This is based on assumptions of a $100/oz gold price decrease year-over-year if gold price stays at current levels, offset by a $155/oz decline in AISC ($945/oz vs. $1,100/oz).

Karora - Annual AISC & Forward Estimates vs. Industry Average (Company Filings, Author’s Chart)

Given this unique margin profile, I believe Karora should trade at a premium to its peer group, especially since it’s a top-10 growth story sector-wide. However, despite continuing to push out exciting news, including the appointment of a new Chief Operating Officer from the St. Ives Mine next door, Karora has found itself at lower prices than a month ago, a case of the baby being thrown out with the bathwater. Let’s dig into the valuation below:

Valuation

Based on ~178 million fully diluted shares (year-end 2023) and a share price of US$2.20, Karora trades at a market cap of $392 million or an enterprise value of approximately $300 million. If we compare this market cap figure to an estimated net asset value of $1.02 billion, Karora is currently trading at 0.38x P/NAV, a valuation typically reserved for early-stage developers or producers in jurisdictions one would prefer not to venture into from an investment standpoint (Guatemala, Venezuela, South Africa, etc.). However, buying at this valuation has been made possible due to a market environment where great news is sold into, good news is sold into, and bad news often leads to violent gaps lower.

In Karora’s case, it’s been consistently reporting great news, with the six most recent developments being as follows:

• a second mill to de-risk its growth plan
• news that the second decline is ahead of schedule & under its original budget
• a new coarse gold find, which could boost H2 production
• high-grade gold intercepts in zones parallel to Larkin (Mason/Cowcill)
• hiring a new COO, Bevan Jones, whose done an exceptional job next door at St. Ives
• a robust nickel PEA paving a path towards much higher by-product credits at Beta Hunt & lower trucking costs with BHP (BHP) restarting its Kambalda Mill

Given the irrational selling we’re seeing sector-wide, and in Karora, I see this as a rare opportunity for investors to buy the stock with more than 180% upside to fair value (18-month price target: US$6.30). This is based on what I believe to be a fair multiple of 1.10x P/NAV to account for the company’s industry-leading growth and Tier-1 jurisdictional profile, as well as the fact that it’s a top-10 exploration story among sub-million-ounce producers sector-wide. The valuation is just as attractive from a cash flow standpoint, with Karora trading at just ~2.2x FY2023 cash flow estimates ($1.02).

Karora Resources - Historical Cash Flow Multiple/Current Valuation (FASTGraphs.com)

While a significant upside case is important when considering stocks to purchase, what’s even more important is the risk profile and possible downside potential when considering that upside case. In my view, Karora has a very simple growth strategy, does not have jurisdictional risk, and is one of the best-positioned producers to deal with inflationary pressures. So, I don’t see much uncertainty regarding not meeting its plans or a jurisdictional risk standpoint, especially with a new COO and a new mill.

Karora - Market Cap vs. Peers (Company Presentation)

To summarize, while the upside case is extremely attractive, I see the downside as very limited from current levels. In my experience, this is what makes for the best investment opportunities. Given the attractive reward/risk setup, I recently added to my position, and I continue to see Karora as a top-10 producer sector-wide. It’s also worth noting that given the added mill capacity (2.8 million tonnes per annum in total if a small expansion completed at Lakewood), the current growth plan looks to be under-selling the true potential here. In an upside case, this could be a near doubling of production to 220,000+ ounces if we continue to see exploration success at Beta Hunt (2.90+ gram per tonne head grades). The current growth plan mid-point is 195,000 ounces.

Summary

In a sector where we’ve seen significant capex blowouts, and relatively poor cost controls among the industry laggards, the wheat has quickly been separated from the chaff. Some investors may prefer dumpster-diving for cheap names, but low-quality names are cheap for a reason, and they’re sure to deliver additional disappointments since it’s in their DNA. However, Karora has proven that it can under-promise and over-deliver under new leadership with CEO Paul Huet. Even with near unprecedented headwinds, the company is doing a phenomenal job tracking against its growth plan and keeping costs below the industry average (FY2022 estimate: $1,290/oz).

So, rather than dumpster diving for the Argonauts (OTCPK:ARNGF), Great Panthers (GPL), and Iamgolds (IAG) of the sector, I think it makes far more sense to focus on quality, and Karora easily makes the top-10 list from a quality standpoint. This is especially true given that while low-quality names often find themselves on the sale rack, high-quality companies rarely ever head to absurd valuation levels outside of violent bear markets, which is where Karora has found itself today (~0.40x P/NAV, ~2.2x cash flow). In summary, I remain very bullish on Karora despite the share price weakness, and I see it as one of the most attractive ways to get exposure to the gold price.below the industry average (FY2022 estimate: $1,290/oz).