Impact: Positive
Karora Resources released updated reserve and resource estimates for its Beta Hunt and Higginsville projects in Western Australia. The company reported an overall increase of ~97% in contained Au reserves (2P) from the previous estimates (including historical). Taking into account the sizeable increase, we now model an expansion of the Higginsville Mill from 3,600 to 6,000 tpd, resulting in our 2022E production increasing to ~143k oz Au (was ~106k oz Au). As a result of incorporating the updated reserves and mill expansion into to our model, we have increased our target to C$8.50/sh (was C$6.75/sh).