(Kitco News) – Karora Resources (TSX: KRR) announced Thursday consolidated gold production of 24,694 ounces for the first quarter of 2021 from its Beta Hunt and Higginsville mines in Western Australia.
The company said that first quarter gold production is in line with consolidated 2021 production guidance of 105,000 to 115,000 ounces. Karora expects gold grades to increase over the course of 2021 as higher grade production from new mining areas in the Higginsville Central area come online and with the anticipated start-up of mining at the high grade Spargos open pit project by mid-year.
Karora added that as a result, 2021 gold production and grades will be higher in the second half of the year compared to the first half. For the full year 2021, all-in sustaining cost guidance of between US$985 to US$1,085 per ounce is maintained, the company noted.
Karora’s consolidated cash balance as at March 31, 2021 was $76.7 million, a slight decrease from $79.7 million on December 31, 2020 due to planned investment into Karora’s assets as part of 2021’s capital program as well as the second, and final, US$2.5 million (A$3.2 million) cash payment to Maverix Metals as part of the Beta Hunt royalty buy back agreement announced on June 30, 2020.
Karora is focused on growing gold production and reducing costs at its integrated Beta Hunt gold mine and Higginsville gold operations in Western Australia. The company also owns the high grade Spargos Reward project which is anticipated to begin mining in 2021.