https://seekingalpha.com/article/439684 ... ch-in-2021
Karora Resources is my no.1 for 2021. This Canadian mining company is focused on its West Australian gold assets. My followers are probably already familiar with Karora. But to sum it up, Karora, formerly known as RNC Minerals, was a tiny company on the verge of bankruptcy, when it discovered an ultra-high-grade Father's Day vein (picture below) at its Beta Hunt mine. From a very small area, around 30,000 toz gold were extracted. This occurred in September 2018. The company was on the verge of bankruptcy and it was considering the sale of the Beta Hunt mine, but the coarse gold discovery changed everything (an article can be found here). Several months later, the company changed its management team and acquired the Higginsville mill along with some old open-pit mines and a large land package. This helped Karora to expand production significantly and reduce production costs. This all, along with growing gold prices, enabled Karora to keep on drilling and discovering more resources, as well as to reduce royalties on its properties (an article can be found here) and acquire another project, Spargos Reward.
More than two years have passed since the Father's Day vein discovery and Karora has transformed itself into a completely new company. Its gold production has grown to approximately 100,000 toz per year, and the AISC was reduced to the $1,000-1,050/toz area, with an aim to push it below $1,000/toz. Also the production volumes should increase, several options including ore sorter and mill expansion are being considered. Given Karora's growing cash pile, even an acquisition of another mill cannot be excluded completely.
But Karora's potential is much larger than only growing production from 100,000 to 125,000 or 150,000 toz gold. Its land package is large and it includes numerous gold deposits and exploration targets. Karora keeps on drilling and the results are really impressive. Only two weeks ago, a new resource and reserve estimate was released. Karora's consolidated proven and probable reserves increased by 334% to 1.33 million toz gold. The consolidated measured and indicated resources increased by 167% to 2.52 million toz gold. And there are also inferred resources of 847,000 toz gold. Beta Hunt was originally a nickel mine, and the gold mineralization was discovered in its lower parts. And although Karora is interested especially in gold production, it prepared a new resource estimate also for the nickel deposit. It contains measured and indicated resources of 35.5 million lb nickel, and inferred resources of 19.1 million lb nickel.
It is also important to note that another new resource estimate is expected in H1 2021. It will focus on the newly acquired Spargos Reward project, where Karora discovered high-grade gold mineralization. Hole SPRC0026 intersected 29.8 g/t gold over 19 meters, and SPRC0012 intersected 27.3 g/t gold over 15 meters. These numbers are really great. Moreover, the intersections were made less than 100 meters below the surface. It means that Spargos has the potential to become an open-pit operation with gold grades, the majority of underground mines only dream about. The gold grades encountered by Karora are comparable to Kirkland Lake Gold's (KL) Fosterville mine. Of course, this is only a small part of the deposit and it would be too optimistic to expect the new Spargos Reward's reserves estimate to deliver gold grades around 30 g/t or even above 20 g/t gold. But even if the number reaches the 5-10 g/t gold area, Spargos Reward will become a highly profitable operation.
And there is also the ever-present wild card in the form of coarse gold. Karora developed a geologic model for its Beta Hunt mine that says that the coarse gold is situated in areas where the sediment zone intersects the four known shear zones. It means that the areas of potential coarse gold occurrence are more than 10 kilometers long. The coarse gold is not included in the resource estimates and Karora doesn't include it even in the production guidance. The presence of coarse gold is a fact, however, its distribution is uneven and hard to estimate. Therefore Karora decided to take it only as a nice bonus that will add to the standard production volumes from time to time. The latest coarse gold find was announced in early November. Karora estimated its volume at 2,000 toz.
Karora's market capitalization is $433 million. Its net debt is negative $20 million, so the enterprise value stands approximately at $413 million. Over the last four quarters, Karora generated an operating cash flow of nearly $60 million, which leads to a price-to-operating cash flow ratio of 7.2. It means that the current valuation doesn't reflect the near-term expansion potential and the fact that the operations are located in a safe and mining-friendly jurisdiction. The upcoming 2021 catalysts, including further drill results (not only from Spargos, but a big potential is also at Lake Cowan and other targets), an organic growth plan (release expected in Q1), and Spargos Reward resource estimate (expected in H1), have the potential to send the share price notably higher.
Happy and successful year 2021!
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Dit wordt een topper voor de Sprott-familie!!
https://www.youtube.com/watch?v=GrQN8dC ... e=emb_logo
Op naar de sterren met Karora!!
parabolische stijging van goud!!
The beast gaat uitbreken!!!
https://money.tmx.com/en/quote/KRR/news ... _Beta_Hunt
Naast goud nikkel als bijproduct!! Musk zal het graag horen!!