The Mining Play

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I mentioned this company last summer. It has released far too much information since last summer to include all of it since I only mentioned it in passing. Wishing I had picked up a lot more shares since then. Below is a list of the PRs released since the beginning of the year. I think it will do very well for the near and long term investor. JMHO

June 4, 2021
Skeena Announces Share Consolidation


May 31, 2021
Skeena Discovers Additional High Grade Mineralization in Former Eskay Creek Waste Facility Including 13.09 g/t AuEq over 13.68 metres


May 25, 2021
Skeena Discovers High Grade Mineralization in Former Eskay Creek Waste Facility Including 6.89 g/t AuEq over 22.80 metres


May 21, 2021
Skeena Announces Filing of Eskay Creek Technical Report


May 20, 2021
Skeena Intersects 155.76 g/t Au over 3.22 metres at Snip Gold Project


May 17, 2021
Skeena Closes C$57.5 Million Public Offering


May 10, 2021
Skeena Announces C$50.0 Million Bought Deal Public Offering


May 4, 2021
Skeena Intersects 4.94 g/t AuEq over 8.20 metres at Eskay Creek in New Mineralized Corridor


April 27, 2021
Skeena Intersects 45.76 g/t Au over 5.60 metres at Snip Gold Project


April 16, 2021
Skeena Closes Previously Announced C$5 Million Investment From Tahltan Nation


April 16, 2021
Skeena Files Early Warning Report in Respect of QuestEx Gold & Copper Ltd.


April 13, 2021
Skeena Closes Final Tranche of Flow-Through Private Placement


April 8, 2021
Tahltan Land to be Protected in Partnership with Conservation Organizations, Skeena and the Province


April 7, 2021
Skeena Announces 5.3 Moz at 4.3 g/t AuEq Measured and Indicated Resources at Eskay Creek


March 31, 2021
Skeena Welcomes $5 Million Investment From Tahltan Nation


March 8, 2021
Skeena Closes First Tranche of Flow-Through Private Placement


March 2, 2021
Skeena Intersects 12.51 g/t AuEq over 19.15 metres in 21C Zone Infill Drilling at Eskay Creek


February 24, 2021
Skeena Announces C$20 Million Flow-Through Private Placement


February 17, 2021
Skeena Discovers New In-Pit Mineralization at Eskay Creek Including 4.80 g/t AuEq over 30.50 metres


February 10, 2021
Skeena Intersects 13.86 g/t AuEq over 25.27 metres in Hanging Wall Zone at Eskay Creek


February 3, 2021
Skeena Intersects Thick 58.50 metre Interval Grading 4.06 g/t AuEq within 21C Zone Development Buffer at Eskay Creek


January 28, 2021
Skeena Intersects Thick Intercepts Grading 5.67 g/t AuEq over 71.85 m and 9.15 g/t AuEq over 25.50 m within 21C Zone Development Buffer at Eskay Creek


January 26, 2021
Skeena Completes Positive Metallurgical Testwork Program in Support of Upcoming PFS for Eskay Creek


January 19, 2021
Skeena Intersects Thick Intercept Grading 9.12 g/t AuEq over 49.60 metres within the 21C Zone Development Buffer at Eskay Creek


January 6, 2021
Skeena Adds Near Surface Mineralization in 22 Zone With 6.00 g/t AuEq over 26.28 metres

Vancouver, BC (June 4, 2021) Skeena Resources Limited (TSX: SKE, OTCQX: SKREF) (“Skeena” or the “Company”) is pleased to announce that, in anticipation of pursuing a listing on the New York Stock Exchange (the “NYSE”), the Company will consolidate its common shares at a ratio of four pre-consolidation shares to one post-consolidation share (the “Consolidation”). Fractional shares of 0.5 or greater will be rounded up to the nearest whole number of common shares and fractional shares of less than 0.5 will be rounded down to the nearest whole number of Shares.
The Company currently has 243,810,333 common shares issued and outstanding. Upon completion of the Consolidation, the Company will have approximately 60,952,583 common shares issued and outstanding. Some slight variance is expected due to fractional rounding. As is customary, to reflect the Consolidation, all outstanding warrants and incentive stock options will be adjusted to increase their exercise price by a factor of four and to reduce the number of common shares issued upon exercise by dividing by four.
Subject to Skeena receiving all required approvals, including the approval of the Toronto Stock Exchange (the “TSX”), the Consolidation is expected to take effect on June 7, 2021. Notice of the Consolidation has been provided to the TSX, and the common shares are expected to begin trading on a post-Consolidation basis on the TSX on or about June 10, 2021.

(https://skeenaresources.com/news)

This is looking very positive for this company. If you have not yet had a look at what this company is doing, you might like to visit the above company link. I think this summer bodes well for those investing in the gold and silver miners at the present time. Keep an eye on all PRs. There are so many companies posting positive developments this year it presents a multitude of possible big gainers. GLTA

Very nice pickup mrbubba!
Labrador Gold Daily

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Well, I have to give all the glory to Rick and Mike, who turned me onto Quinton Hennigh, the brains behind Novo Resources (struggling right now) and New Found Gold.

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Novo Resources may not look so attractive right now, but by the end of the year I’m anticipating it wil be hitting on multiple targets. It has disappointed many of it’s early investors by not producing results much quicker, but it’s Exploration Update last week shows it has a busy season ahead (NOVO Resources Corp. - Display) that will be pleasing investors for many years. It is one of my larger positions.

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Quinton Hennigh really has a knack (er…brilliance) for spotting geological opportunities, explaining them in simple terms and ultimately moving them forward. I don’t have to look for new mining investments…he brings them to me merely by his involvement.

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Interesting reference to Novo in Inventus’ latest PR:

As with almost all paleoplacers, assays from drilling alone do not provide enough information about gold grade because of the uneven gold distribution and small sample size. Therefore, it is crucial to collect an adequate size sample to correctly measure the grade.

An instructive example of this type of sampling was carried out by Novo Resources at their Beatons Creek paleoplacer project in Australia, which is currently starting commercial gold production. It included 45 samples averaging two tonnes each at regular intervals across the mineralized horizon.

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Just an update :

Skeena Confirms Completion of Share Consolidation June 10, 2021

Vancouver, BC (June 10, 2021) Skeena Resources Limited (TSX: SKE , OTCQX: SKREF ) (“Skeena” or the “Company”) is pleased to confirm that, pursuant to its news release dated June 4, 2021, the Company’s common shares have been consolidated at a ratio of four pre-consolidation shares to one post-consolidation share (the “Consolidation”). The common shares will begin trading on a post-consolidation basis on the TSX at market open today, June 10, 2021.

The Company now has 60,952,631 common shares issued and outstanding and all outstanding warrants and incentive stock options have been adjusted to increase their exercise price by a factor of four and to reduce the number of common shares issued upon exercise by dividing by four.

About Skeena
Skeena Resources Limited is a Canadian mining exploration company focused on revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden Triangle of northwest British Columbia, Canada. The Company released a robust Preliminary Economic Assessment in late 2019 and is currently focused on infill and exploration drilling to advance Eskay Creek to full Feasibility by Q1 2022. Additionally, Skeena continues exploration programs at the past-producing Snip gold mine.

I believe there is a needed correction in this release, however.
It appears there is a new trading symbol on the OTC that may have caused some initial confusion in the US market. Fidelity shows the new ticker post reverse split as SKRED. Although I did not pick up the bid this morning, I did add to my position the last couple of days. I think we’ll see some very positive updates on this one throughout the summer.

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Is this anywhere near the bottom, or as Basel III is scheduled to be enacted at the end of the month have any effect at all? Physical Gold changes from a Tier 3 (which includes paper contracts) asset to a Tier 1 (physical allocated gold) asset for banks. Here is an excerpt from a much longer article that has a very clear explanation of what Basel III is all about.

Some changes called for in Basel 3 were so extreme that some revisions were made and implementation was repeatedly delayed. As it now stands, some of the impact of Basel 3 takes effect at the end of June this year, while all changes become effective on Jan. 1, 2023.

The goal of the forthcoming Basel regulations is to limit the levels of risk that banks take on in the pursuit of profits, which would hopefully prevent a major worldwide financial crisis if markets turn negative. It’s a wonderful idea in theory. However, in practice, some changes could be so disruptive to the actions of some governments, central banks and financial institutions that there is already pushback.

Part of the Basel 3 regulations that could be especially disruptive are those involving bank trading of precious metals.

This is a very good article. I don’t think we’ll have to wait until 2023 to see some sensational moves upwards in the POG and resulting moves in the miners. The aftermath effects of Basel III may explain a lot of the volatility I expect to see in the PM mining sector. I expect some spectacular returns over the next several years in many of the producing and streaming stocks. There are a number of speculative drillers in both gold and silver that are likely to be targeted for M & A by the majors. I’m long on many of my core holdings, but expect to swing trade incrementally as opportunities arise.

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Hochschild starts trading on the OTC today

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Added to NOVO and KRR today. Thinking both might be positioned for a bit of a run especially if gold improves. Some significant news on KRR might happen soon.

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Both at bargain levels.

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Factbox: ESG targets of big mining companies

April 30 (Reuters) - With mining responsible for 4-7% of greenhouse gas (GHG) emissions globally, the sector is under pressure from environmental activists and shareholders and faces the possible withdrawal of financing and insurance for mines viewed as contributing to climate change.

Glencore (GLEN.L) plans to become a net-zero emission company by 2050, including emissions from the use of the products it sells.

Rivals such as Anglo American (AAL.L), BHP (BHPB.L), Rio Tinto (RIO.L) and Vale SA (VALE3.SA) have set similar GHG reduction targets.

However, such plans are difficult to compare, due to a varied mix of commodities produced and the challenge to track customers’ emissions.

Direct emissions from miners representing 60% of total gold mine supply accounted for 0.2% of total global carbon emissions in 2019, but more action is required if the gold industry is to meet the most ambitious targets in the Paris climate accord, consultancy Wood Mackenzie said. …

Added as well, and moved some NSRPF into my ROTH, FWIW. I anticipate some extended patience may be needed for Egina to come to fruition.

With a mind on silver plays, I began a small starter position in Gogold Resources yesterday and today (GGD.TO, GLGDF). I’m also adding to my Blackrock Silver position incrementally. I sat in on the June 15 Virtual Silver Investor Forum for Gogold Resources which moved quite rapidly through many companies. The company name appears to be a real misnomer, (Gogold is mainly a silver play), but this short 20 minute presentation shown below caught my eye with similar info. Not able to post the investor forum, but this is a fairly recent presentation by the company.

World Gold Forum Presentation | GoGold Resources Inc.

This Explorer/Developer has some very impressive properties with outstanding grades, and a well-funded $20M budget for a 100,000 M drilling campaign this summer. It appears well managed, IMO. The company keeps shareholders informed to progress with frequent PRs. I plan on acquiring a greater position as funds allow.

GoGold Drills 1,213 g/t AgEq over 1.9m within 33.6m of 164 g/t AgEq at Casados in Los Ricos North
Jun 16, 2021

GoGold Drills 1,007 g/t AgEq over 4.2m within 58.0m of 168 g/t AgEq at El Orito in Los Ricos North
Jun 09, 2021

GoGold Drills 1,243 g/t AgEq over 1.3m within 56.1m of 105 g/t AgEq at El Favor in Los Ricos North
Jun 02, 2021

GoGold Drills 2,835 g/t AgEq over 0.8m on New Vein at Casados in Los Ricos North
May 26, 2021

GoGold Drills 1,729 g/t AgEq over 1.8m and 53.4m of 145 g/t AgEq at El Orito in Los Ricos North
May 19, 2021

Parral Generates $6.3M US of Free Cash Flow for Quarter Ending March 31, 2021
May 12, 2021

GoGold Announces Closing of C$28.75 Million Bought Deal Financing
May 07, 2021

GoGold Announces C$25 Million Bought Deal Financing
Apr 21, 2021

GoGold Drills 1,320 g/t AgEq over 1.5m within 16.8m of 306 g/t AgEq, Extending Mineralized Zone 200m to East at Casados in Los Ricos North
Apr 21, 2021

GoGold Drills 1,676 g/t AgEq over 3.4m within 69.3m of 145 g/t AgEq from Surface at El Favor in Los Ricos North
Apr 14, 2021

Parral Reports Ninth Consecutive Quarter of Positive Cash Flow on Production of 551K AgEq Oz
Apr 07, 2021

GoGold Drills 1,126 g/t AgEq over 1.8m within 11.4m of 275 g/t AgEq and 48.6m of 164 g/t AgEq at El Orito in Los Ricos North
Mar 31, 2021

GoGold Announces Results of Annual Meeting 2021
Mar 24, 2021

GoGold Drills 7,616 g/t AgEq over 0.8m within 49.1m of 291 g/t AgEq at Casados in Los Ricos North
Mar 17, 2021

GoGold Drills 845 g/t AgEq over 3.5m within 84.6m of 125 g/t AgEq at El Orito in Los Ricos North
Mar 10, 2021

GoGold Drills 2,245 g/t AgEq over 2.3m and 70.5m of 115 g/t AgEq including 10.1m of 478 g/t AgEq at El Favor in Los Ricos North
Feb 24, 2021

GoGold Announces New Discovery at Casados in Los Ricos North Including 2,740 g/t AgEq over 1.3m Contained Within 56.5m of 171 g/t AgEq
Feb 17, 2021

Parral Generates $6.7M US of Free Cash Flow for Quarter Ending December 31, 2020
Feb 11, 2021

GoGold Drills 1,233 g/t AgEq over 0.8m within 511 g/t AgEq over 3.2m at La Trini in Los Ricos North
Feb 03, 2021

GoGold Announces New Discovery at El Orito in Los Ricos North Including 43m averaging 323 g/t AgEq
Jan 27, 2021

GoGold Announces NPV of US$295M for Los Ricos South PEA
Jan 20, 2021

GoGold Reports Record Quarterly Production of 614K AgEq Oz at Parral
Jan 13, 2021

GoGold Drills 2.0m of 928 g/t AgEq at El Favor in Los Ricos North within 15.3m of 174 g/t AgEq
Jan 06, 2021

KRR’s growth plan/discussion to happen Monday.

https://mailchi.mp/1dfd8786984a/event-invite-growing-gold-production-in-western-australia-one-of-the-worlds-best-mining-jurisdictions-4948762?e=daf82362dc

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Karora Resources Announces Partnership With The Net Zero Company To Develop Pathway To Become One Of The World’s First Net Zero GHG Junior Gold Mining Companies
Highlights

  • Karora is announcing a partnership with The Net Zero CompanyTM in order to commit to, and implement, a pathway to become one of the world’s first net zero junior gold mining companies.
  • Karora will work with The Net Zero CompanyTM to seek to ensure its approach to setting and achieving GHG reduction targets is inline with best practices based on available science to achieve the aspirations of the Paris Agreement. As the program is further outlined and targets are identified, updates will be provided to the market.
  • Karora’s initial focus will be on Scope 1 and 2 emissions reductions, followed by Scope 3 emissions reductions to work toward its goal of reaching True Net Zero (Scope 1, 2 and 3) status.
  • Progress on the GHG reduction program will be included in Karora’s inaugural ESG Report which is expected in early 2022.

Karora Resources Partners With The Net Zero Company For “True Net Zero” Blueprint

Karora Resources, an ASX-listed gold mining company, is partnering with The Net Zero Company to develop a pathway and set targets towards a True Net Zero mining future covering Scope 1, 2 and 3 greenhouse gas (GHG) emissions.

Based on a science-based methodology, the maiden ESG report from the partnership will be received in early 2022.

The joint effort will build upon the ESG program already underway at Karora and, in the near term, analyze GHG emission reduction opportunities in Karora’s operations. This will include assessment and implementation of alternative or renewable energy sources.

The immediate focus will be on Scope 1 and 2 emissions, to be followed by evaluation and reduction of Scope 3 emissions.

“Mining is a carbon intensive industry, and we view this partnership as an opportunity to take a proactive approach in reducing our carbon footprint,” said Paul Huet, Chairman and CEO of Karora, in a statement. “We are setting the stage to be a sector leader in the junior gold mining space with the goal to ultimately become a Net Zero business.”

“We have already begun work on several parallel cost positive initiatives with Karora aimed towards rapidly achieving True Net Zero status that is anchored in science,” said Andre Fernandez, CEO of The Net Zero Company.
(Karora Resources Partners With The Net Zero Company For “True Net Zero” Blueprint – Energy And Mines)

Karora Announces Three Year Production Guidance and Organic Growth Plan to Double Gold Production to 185,000 - 205,000 oz by 2024

Highlights:

  • Three-year production and cost guidance doubling consolidated gold production to 185,000 – 205,000 ounces by 2024 at AISC of US$885-US$985 per ounce.
  • Significant expansion of Karora’s primary asset, Beta Hunt, will see underground production increased to 2.0 Mtpa by 2024 through the addition of a second decline.
  • Phase II expansion of Higginsville processing plant, increasing throughput to 2.5 Mtpa by 2024. Phase I expansion to 1.6 Mtpa from 1.4 Mtpa currently underway.
  • Growth plan is organically funded through operating cash flows and current cash balance (end of Q1 2021 - C$76.7 million).
  • Multiple upside projects identified that are expected to enhance growth profile beyond the current plan. These include the high grade Larkin Zone and high grade 30C & 50C nickel troughs at Beta Hunt as well as district scale potential at Higginsville.
  • New, higher confidence Spargos Mineral Resource estimate, focused on near-term open pit mining. Measured and Indicated Mineral Resource estimate of 1.08 Mt at 3.0 g/t (105,000 ounces) and 0.4 Mt at 3.2 g/t (45,000 ounces) of Inferred Mineral Resource.
  • Spargos deposit remains open at depth, both along strike and down-dip with significant exploration potential identified by a recent Karora geological review.
  • Potential for valuation re-rating as Karora transitions into the next tier of gold producers with increased scale, margins and potential investor interest.

TORONTO, June 28, 2021 /CNW/ - Karora Resources Inc. (TSX: KRR) (“Karora” or the “Corporation”) is pleased to announce its multi-year consolidated growth plan to double gold production from 99,249 ounces in 2020 to a range of 185,000 – 205,000 ounces in 2024 at an All-in Sustaining Cost (“AISC”) of US$885 – US$985 per ounce.

As detailed in this news release, the growth plan will be driven by an expansion of Beta Hunt underground mine production to 2.0 Mtpa by 2024, from 0.8 Mtpa recorded in 2020. Increased production from Beta Hunt will be complemented by the Spargos Reward and Higginsville Central areas, with Spargos expected to begin mining ore in Q3 2021. This tonnage will be processed by the Higginsville mill, which will be expanded to a capacity of 2.5Mtpa by 2024 (Phase II), an increase from the current Phase I expansion to 1.6Mtpa from 1.4Mtpa that is currently underway.

Table 1 – Consolidated Multi-Year Guidance to 2024

Production & Costs 2021 2022 2023 2024
Gold Production Koz 105 - 115 120 – 140 150 – 170 185 - 205
All-in sustaining costs US$/oz 985 - 1,085 900 – 990 890 – 990 885 - 985
Capital Investments
Sustaining Capital A$ (M) 5 - 6 8 – 13 11 – 16 18 - 23
Growth Capital A$ (M) 40 - 46 45 – 55 47 – 57 30 - 40
Exploration & Resource
Development A$ (M) 20 - 23 21 – 24 22 – 25 20 – 23
  1. 2021 Guidance, which was announced in January 2021 (see Karora news release dated January 19, 2021), is unchanged. This production guidance through 2024 is based on the 2020 year-end Mineral Reserves and Mineral Resources announced on December 16, 2020.
  2. The Capital Investment amounts listed above, which the Corporation expects to fund with cash on hand and cashflow from operations, includes the capital required during the applicable periods to expand the capacity of the Higginsville mill to 2.5 Mtpa. See below for further detail regarding this expansion.
  3. The material assumptions associated with the expansion of Beta Hunt mining production rate to 2.0 Mtpa in 2024 include the addition of a second ramp decline system driven parallel to the ore body, ventilation and other infrastructure that is required to support these areas, and an expanded trucking fleet. The Capital Investment amounts listed above, which the Corporation expects to fund with cash on hand and cashflow from operations, include the capital required during the applicable periods to fund this production expansion. See below for further detail regarding this expansion.
  4. The Corporation’s guidance assumes targeted mining rates and costs, availability of personnel, contractors, equipment and supplies, the receipt on a timely basis of required permits and licenses, cash availability for capital investments from cash balances, cash flow from operations, or from a third-party debt financing source on terms acceptable to the Corporation, no significant events which impact operations, such as COVID-19, nickel price of US$16,000 per tonne, as well as an A$ to US$ exchange rate of 0.78 and A$ to C$ exchange rate of 0.91. Assumptions used for the purposes of guidance may prove to be incorrect and actual results may differ from those anticipated. See below “Cautionary Statement Concerning Forward-Looking Statements”.
  5. Exploration expenditures include capital expenditures related to infill drilling for Mineral Resource conversion, capital expenditures for extension drilling outside of existing Mineral Resources and expensed exploration. Exploration expenditures also includes capital expenditures for the development of exploration drifts.
  6. Capital expenditures exclude capitalized depreciation.
  7. AISC guidance includes general and administrative costs and excludes share-based payment expense.
  8. See “Non-IFRS Measures” set out at the end of this news release.
  9. See “Risk Factors” described on page 29 of the Corporation’s MD&A dated March 19, 2021.

Figure 1: 2021 to 2024 Growth and Cost Profile

Figure 1: 2021 to 2024 Growth and Cost Profile (CNW Group/Karora Resources Inc.)

Paul Huet, Chairman and CEO of Karora commented, "I am extremely pleased to announce our organic growth plan, which includes a three-year ranged guidance profile that is based on Karora’s 2020 year-end Mineral Reserves and Mineral Resources announced on December 16, 2020.

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. 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.

This growth plan to increase gold production from 99,249 ounces in 2020 to a range of 185,000 to 205,000 ounces in 2024 is, importantly, driven via the expansion of our primary asset - Beta Hunt. Over the past two years, we have optimized, improved and executed extremely well across our operations, with Beta Hunt leading these efforts. During this period, we have delivered seven consecutive quarters of reliable and robust production despite operational, weather and pandemic-related challenges. I am extremely proud of our operational accomplishments during this period, and as an operator at heart myself, I am very confident in our ability to deliver on this growth plan.

In addition to the Beta Hunt underground expansion and Higginsville mill expansion to 2.5Mtpa, we have several exciting projects that we expect will provide upside beyond the growth plan we are announcing today. If we are able to unlock the value in these projects, and I am confident we will, they will significantly enhance what is an already impressive path forward for Karora.

These additional opportunities include our plan to deliver a maiden resource estimate of the Larkin Zone, which will form part of our 2021 consolidated Mineral Resource and Mineral Reserve update. Based on drilling results to date, Larkin has the potential to increase grades above and beyond the current growth plan numbers. Furthermore, the potential future by-product nickel credits associated with the Beta Hunt 30C and high grade 50C nickel trough discoveries provide further upside opportunity, the latter having the potential to be higher grade than our current nickel Measured and Indicated Mineral Resource of 561 kt at 2.9% for 16,100 tonnes of nickel. We now have an exploration team dedicated to these high priority nickel areas at Beta Hunt. As we will continue to drill these zones and receive assays, we will update the market with developments.

On the subject of drilling, our 2021 program continues to deliver on the untapped exploration potential across our land package including Beta Hunt, Higginsville Central, Spargos and Lake Cowan. To date in 2021 we have completed 57,968 metres of our planned 68,500 metre exploration drilling program. In the first half of the year, drilling at Beta Hunt was focused on resource definition while drilling at Higginsville was more directed towards greenfields exploration, the bulk of which is associated with the Lake Cowan reconnaissance program. We are currently compiling and analyzing these results ahead of targeting our next phase of drill targets.

Lastly, I would like to acknowledge the very hard work of our entire team required to deliver this growth plan on time and on budget despite numerous external challenges. I know they are as excited as I am to get to work on executing this plan. Together we are confident it’s going to be an exciting journey ahead."

Higginsville Mill Expansion

Central to Karora’s growth plan is the expansion of the Higginsville mill as part of the Corporation’s hub and spoke model. The Phase I expansion of the mill from 1.4 million tonnes per annum (Mtpa) to 1.6 Mtpa is well under way, for relatively modest capital expenditure of approximately A$3 million.

The Phase II mill expansion is expected to reach a throughput rate of 2.5 Mtpa by 2024 at a total capital expenditure of A$50 million, as noted in our existing technical report dated January 29, 2021. It is expected that this A$50 million spend will be incurred from mid-2022 through mid-2023.

The key areas included in the Phase II mill expansion are the installation of a new semi-autogenous grinding (SAG) mill and motor and the associated extension of the conveyor system. The existing quaternary crusher will be repurposed as a pebble crusher in the SAG mill circuit while the existing ball mill, recently upgraded gravity circuit and elution columns will be reused in the expanded plant. Additional trash screens for filtering wet media, carbon in leach (CIL) tanks and a new thickener will be installed on the back end of the mill.

Once completed, the mill expansion would provide optionality to blend Paleo channel material with material from the Corporation’s other operating mines.

Beta Hunt Mine Expansion

The Beta Hunt Mine expansion represents the backbone of Karora’s growth plan and is expected to approximately double the production capacity of the mine from the current rate of approximately 75,000-85,000 tonnes per month (tpm) to 160,000 – 170,000 tpm by the end of 2024.

Karora commissioned Hatch Ltd. to investigate materials handling options for increased production rates at Beta Hunt. After extensive review of each option, and Karora’s significantly improved mining and hauling efficiencies, the Corporation selected the addition of a second decline and expanded trucking fleet to increase mining throughput at Beta Hunt. The addition of a second decline will best leverage the significant experience of the Beta Hunt underground mining team which have delivered outstanding operational improvements since the restart of operations in 2019.

The new decline will duplicate the current single access into the mine intersecting the existing workings 240 vertical metres below the surface. The decline is positioned adjacent to the up plunge extensions of current mining zones which will allow for gold mining operations concurrently with driving the decline – a distinct advantage. Increased mine development rates and expansion of the underground mining fleet will support the decline construction along with primary ventilation upgrades.

Figure 2: Beta Hunt Mine – Oblique Long section looking Northeast highlighting position of second decline

Figure 2: Beta Hunt Mine – Oblique Long section looking Northeast highlighting position of second decline (CNW Group/Karora Resources Inc.)

Note: Mineral Resources as of September 30, 2020. For scale, Mineral Resources shown cover a strike length of 2.5 kilometres.

Higginsville Central and Spargos Gold Project

The Higginsville Central “high grade core” and Spargos Gold Project are expected to provide a stable source of mill feed including a mix of feed from open pit and underground operations. Both brownfields restarts and new projects including Two Boys, Aquarius and Trident will complement the feed from the Spargos open pit and underground.

Aquarius

Pre-production works for the Aquarius mine commenced in the second quarter of 2021 with the final box cut, portal establishment and commencement of decline development to occur in the third quarter of 2021. The box cut has been positioned to provide most economical and practical access to the underground ore blocks and to intersect supergene ore close to the surface. These blocks will be mined as the box cut advances and will help offset overall development costs. Development of the decline will continue throughout the third and fourth quarter with initial level development ore expected late in the fourth quarter of 2021 and stope production starting shortly thereafter. The Aquarius deposit remains open along strike and at depth with follow up drilling to be carried out from the lateral underground development which will provide optimal drill bay locations.

Figure 3: Aquarius Mine box cut

Figure 3: Aquarius Mine box cut (CNW Group/Karora Resources Inc.)

Two Boys

Karora began mine re-entry works at Two Boys underground in the second quarter of 2021 following dewatering of the historical operations. Rehabilitation will continue throughout the third quarter of 2021 in conjunction with development to access remnant and new ore blocks. Initial conditions encountered at Two Boys have met, and in many places exceeded expectations. A revised development and stope production plan is currently being updated to include recent face samples (5-10 g/t), surface drilling and re-mapping of historic workings. Drilling is also underway into surface mineralization adjacent to Two Boys which could extend into the upper levels of Two Boys underground, previously not considered in the mine plan.

Spargos Gold Project Mineral Resource

Karora is also pleased to provide its initial Spargos Mineral Resource ahead of commencing mining in the third quarter. The new Resource presents a 15% increase in ounces but also a higher confidence basis from which to commence mining activities compared to the historic Corona Resources Mineral Resource estimate (Corona Resources news release “Resource Estimate Update for Spargos Reward Project Eastern Goldfields Western Australia’ dated on February 26, 2020”). The infill and resource definition drilling efforts completed by Karora, totalling 13,377 metres, were focused on delineating the near-term open pit mining opportunity for which initial pre- development activities have been underway since the first quarter of 2021. As such, significant step-out potential exists beyond the current estimate, particularly at depth where down-plunge and down-dip extensions remain virtually untested.

The initial Karora Spargos Mineral Resource includes the results of 138 Resource Definition holes and 375 surface grade control holes.

Table 2: Spargos Gold Deposit Mineral Resource Estimate as at June 24, 2021

Mineral Resource Measured Indicated Measured & Indicated Inferred
Kt g/t Koz Kt g/t Koz Kt g/t Koz Kt g/t Koz
Spargos 1.2.3.4.5 241 2.4 19 836 3.2 86 1,077 3.0 105 401 3.5 45

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 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. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding
3. Gold Mineral Resources are reported using a 0.5 g/t Au cut-off grade above 300mRL, and 1.6g/t Below 300mRL
4. Mineral Resources described here are based on information compiled by Graham de la Mare, Principal Resource Geologist for Karora Resources. Graham de la Mare is an employee of KRR and is a Fellow of the Australian Institute of Geoscientists (FAIG, 1056).
5. This Mineral Resource estimate may be materially affected by legal, political, environmental and other risks.
6. Mineral Resource Estimate as of June 24, 2021.

An extensive geological review completed by Karora exposed how little drill testing exists for underground mineralization below the 300mRL (150 m below surface) outside of the Mineral Resource. The northern margin is constrained by just three historic holes (including two wedges). These holes are considered to have missed the high grade plunging shoot positions which remain open at depth down plunge. The southern margin of the Mineral Resource is limited by a single historic hole and is considered virtually untested.

The northern and southern strike extensions of the Spargos Mineral Resource are also poorly tested by historic drilling and represent a significant underground growth opportunity. As such, the Resource remains open in both directions.

The next stage of exploration drilling will be focused on extending high grade gold mineralization outside the margins of the current Mineral Resource and at depth to further define the potential for a high grade underground operation at Spargos. High grade results announced in November 2020, including SPRC0026: 29.8 g/t over 19.0 metres, including 99.5 g/t over 5.0 metres, SPRC0012: 27.3 g/t over 15.0 metres, including 168.0 g/t over 1.3 metres and SPRC0019: 8.0 g/t over 19.0 metres, including 20.6 g/t over 2.0 metres (see Karora news release dated November 18, 2020), highlight the potential for the discovery of additional high grade shoots which have the potential to positively impact future mined grades.

Figure 4: Longsection looking west showing Spargos Mineral Resource represented by block model average grade across the width of the lode s

Figure 4: Longsection looking west showing Spargos Mineral Resource represented by block model average grade across the width of the lodes (CNW Group/Karora Resources Inc.)

Note: All drilling (excluding surface grade control) is shown as pierce points. Interpreted north plunging high grade shoots remain open at depth

Potential to regionally grow the existing deposit outside of the immediate extensions of the Mineral Resource has also been identified. Interpretation completed by the Company’s site-based exploration team has targeted a mineralized position associated with a porphyry controlled dilational target (pressure shadow) 1.5 kilometres south of the Spargos deposit. This target is associated with historical, near surface downhole drill intersections including 14.1 g/t over 2 metres from 5 metres (SRC013), 7.7 g/t over 0.5 metres from 44 metres (SRB171) and 48.5 g/t over 1 metre from 2 metres (SR0988) reported by Corona Resources Limited. A qualified person of the Corporation has not completed sufficient work to verify such historic drill results. However, the Corporation believes that such drilling and analytical results were completed to industry standard practices. The information provides an indication of the exploration potential of the Spargos deposit but may not be representative of expected results.

Figure 5: Aeromag image covering eastern margin of the Spargos Project. Image shows interpreted position of prospective shears and structural target 1.5km south of the Spargos Reward deposit.

Figure 5: Aeromag image covering eastern margin of the Spargos Project. Image shows interpreted position of prospective shears and structural target 1.5km south of the Spargos Reward deposit. (CNW Group/Karora Resources Inc.)

Further Exploration and Development Potential

Beta Hunt

Drilling on the Larkin trend was recently completed with drilling totalling 47 holes for 9,362 metres. Assays remain pending for the latest holes. Resource modelling on the Larkin Zone is expected to commence in the third quarter, with an initial Larkin Mineral Resource expect to be included in Karora’s 2021 consolidated Mineral Resource and Mineral Reserve update. The 30C Nickel Trough -– the first new nickel discovery at Beta Hunt in 13 years - sits approximately 5 to 10 metres above the Larkin Gold Zone has returned some strong nickel grades such as 7.7% nickel over 1.3 metres (BE30-009) and 8.6% nickel over 1.0 metre (BE30-010) (See Karora news release dated September 10, 2020).

Drilling underground is active on four exploration targets – A Zone North, Western Flanks North, Fletcher and the 50C Nickel Trough (Figure 6). Three drill rigs are engaged to undertake the planned drilling: one surface multipurpose RC/diamond rig and two underground rigs. A fourth rig is due to commence drilling in the third quarter and will be dedicated to accelerating underground drilling for the 50C nickel trough where high grade nickel was recently discovered, including G50-22-005E which intersected 11.6% nickel over 4.6 metres, included 18.4% nickel over 2.2 metres (see Karora news release dated April 6, 2021). All four targets represent potential extensions to existing Mineral Resources or known mineralization and have potential to add significant value to the Beta Hunt operation.

Figure 6: Beta Hunt plan view showing active exploration drill targets

Figure 6: Beta Hunt plan view showing active exploration drill targets (CNW Group/Karora Resources Inc.)

Higginsville

Higginsville exploration is currently focused on assessing the results of drilling and interpretative work completed in the first half of 2021 before proceeding on the next stage of regional drilling.

At Lake Cowan, all aircore drilling results have now been received and are being analyzed for the next phase of targeting work. The highlight from the drilling was an intersection of 1.35 g/t over 50 metres, including 3.64 g/t over 16 metres, north of the existing Monsoon prospect (see Karora news release dated February 8, 2021). In 2016, intercepts of 11.4 g/t over 50 metres in hole SPBC0313 and 6.4 g/t over 38 metres in hole SPC0320 were reported at the Monsoon prospect by S2 Resources (see S2 Resources news release dated July 21, 2016). A qualified person of the Corporation has not completed sufficient work to verify such historic drill results. However, the Corporation believes that such drilling and analytical results were completed to industry standard practices. The information provides an indication of the exploration potential of this deposit but may not be representative of expected results.

Monsoon and Monsoon North are part of the Sleuth Trend which is interpreted as part of the Zuleika Shear Zone - a regionally prospective structure that, along with subsidiary faults, controls the bulk of the Higginsville Central gold deposits (2 million ounces)1, extending 55 kilometres north to Cave Rocks (0.5 million ounces)1, 70 kilometres north to Mount Marion (0.7 million ounces)1 and 110 kilometres north to Kundana (6 million ounces)1. CSA Global Mining Industry Consultants have been commissioned to undertake a 3D targeting desktop study focusing on the Sleuth Trend area of the Lake Cowan Project with the aim of producing high quality and prospectivity-ranked targets for follow-up drilling.

At Higginsville Central, the focus remains on resource definition with current drilling aimed at extending and upgrading existing Mineral Resources at the Two Boys and Aquarius deposits. Additional drilling is also planned for the Fairplay and Trident deposits later this year.

  1. Estimated gold production ounces
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The live Karora Growth Summit previously announced by MG is now beginning.

Karora Project Pipeline slide from the Webinar: