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Karora Resources Inc T.KRR

Alternate Symbol(s):  KRRGF

Karora Resources Inc. is a Canada-based multi-asset mineral resource company. The Company’s portfolio includes the Beta Hunt Underground Mine, Higginsville Gold Operations and Lakewood Mill. It owns 100% of Beta Hunt, a gold-producing mine located approximately 600 kilometers from Perth in Kambalda, Western Australia. It owns and operates HGO, which is located approximately 75 kilometers south of the Beta Hunt Mine in Higginsville, Western Australia. HGO has a mineral gold resource and reserve and prospective land package totaling approximately 1,900 square kilometers. The operation includes a 1.6 million tons per annum (Mtpa) processing plant, 192 mining tenements, including the Aquarius, Hidden Secret, Mousehollow, Two Boys, Baloo, Pioneer, Fairplay North, Mitchell, Wills, Challenge and Mount Henry deposits. The Lakewood Gold Mill is located just outside Kalgoorlie, Western Australia and approximately 60 kilometers from the Beta Hunt Mine, has a processing capacity of 1.0 Mtpa.


TSX:KRR - Post by User

Comment by Farquaron Nov 28, 2023 4:31pm
163 Views
Post# 35757247

RE:RE:According to the LBMA Q3 average gold price = 1928$US

RE:RE:According to the LBMA Q3 average gold price = 1928$USWell first off we need to know how much ore those 2 mills can handle in a quarter ( 91 days) when they arr operating at maximum capacity...Krr was supposed to have installed that ball mill at Lakeview mill to add another 200k tons/ year of capacity... Of course they don't communicate anything to shareholders about many things but I am going to assume that that ball mill is functional now... So the 2 mills can handle 700,000 tons of ore per quarter ( 2.8 million tons/year ÷ 4 = 700 k...

If they shut down both mills for 14 days each , that means they are losing about 15% of capacity , so 700k X 15% = 595 k.....

In Q3 the mills processed only 516 k  tons ,  wheras 536 k
tons of ore went tbrough the mills in Q2...

Because of the big drop in Q3 ore tonnage compared to Q2 , It looks like  they already did a shut-down but I don't know...

But getting back to whether they shut down for 2 weeks or not, the mill capacity would still be about 595k.  They did 516 k in Q3 , so there is plenty of excess mill capacity to be utilized..

Another point I want to make is that the ore grade of Beta Hunt was only 2.1 g/t in Q3... I think the norm is usually 2.6 g/t so if they go back to the normal grades they should produce a lot more gold out of Beta Hunt in Q4... 


The 2 ramps should be providing access to 500 k tons of Beta Hunt ore  330k from ramp #1 and 170k from ramp #2..

500 k x 2.6g/t net = 41,800 gold ounces + 17,200 from HGO = 59,000 ounces in Q4 or 236,000 annual pace

So KRR management is sort of sticking to their 2023 guidance which is 160 k ounces on the top end even though I am showing a plausable potential production amount of 59,000 ounces..

So, we know that ramp #1 can take 330 k tons of ore, but why is ramp #2 not able to take more ore than they are projecting?

Anyways lots of questions but no answers at this point... But if they do only produce 40,000 ounces in Q4 , for whatever reason, that just conserves the gold for next year when gold prices should be  higher...

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