Highlights:
- New mineralized setting intersected beneath the 50C nickel
trough has returned an initial diamond drill intersection of 40.5
g/t over 4.0 metres in hole
G50-22-007NE1,3. The intersection is
associated with a basalt breccia, different to what has previously
been observed in the A Zone and Western Flanks Mineral Resources.
Interpretation of this new host mineralization is underway.
- A second new gold discovery hole intersected the widest ever
mineralized interval drilled by Karora at Beta Hunt. The
intersection of 1.5 g/t over 90 metres1,3 includes 50.9
g/t over 0.4 metres and occurs approximately 250 metres west of the
Larkin Zone. Results of the two holes drilled to date west of the
Larkin Zone include1,3:
-
- EL-EA2-004AE: 1.5 g/t over 90.5 metres including 3.2 g/t over
13.1 metres (includes 50.9 g/t over 0.4 metres) and 2.7 g/t over
6.0 metres
- EL-EA2-005AR: 1.2 g/t over 30.3 metres, including 2.2g/t over
4.3 metres
- Recent infill drilling of the Larkin Zone continues to
support continuity of the gold mineralization defined to date.
Highlights include2,3:
-
- EL-EA2-004AE: 4.7 g/t over 5.0 metres
- BL-19-17AR: 7.6 g/t over 2.1 metres
- BL-19-20AR: 74.0 g/t over 1.0 metre
1.
|
Interval lengths
are downhole widths. True estimated widths cannot be determined
with available information.
|
2.
|
Interval lengths
are estimated true widths
|
3.
|
Tables showing
complete results and drill holes can be found at the end of this
news release.
|
TORONTO, Nov. 15, 2021 /CNW/ - Karora Resources Inc. (TSX:
KRR) (OTCQX: KRRGF) ("Karora" or the "Corporation") is pleased to
announce new exploration drilling results from the Beta Hunt Mine.
The new drilling results include the discovery of high grade gold
mineralization approximately 50 metres below the interpreted
extension of the 50C nickel trough in the Gamma Block (see Karora
news releases dated April 6, 2021 and
October 8, 2021 and Figure 1 below
for an outline of block areas at Beta Hunt).
Underground exploration drilling has returned an initial
intersection of 40.5 g/t over 4.0 metres in diamond drill hole
G50-22-007NE. The new discovery is associated with a basalt
breccia. This association of gold mineralization with brecciation
is not generally observed in current gold Mineral Resources at Beta
Hunt.
Exploration drilling to the west of the Larkin Zone has also
intersected what appears to be a parallel zone of gold
mineralization. The discovery hole of 90 metres grading 1.5
g/t is approximately 250 metres west of the Larkin Zone and
returned individual grades as high as 50.9 g/t over 0.4 metres.
Paul Huet, Chairman and CEO of
Karora said, "I am excited by the new exploration drill results
which continue to demonstrate the tremendous growth potential at
the Beta Hunt Mine.
Our first drill hole south of the 50C nickel discovery in the
Gamma Block area intersected 40.5 g/t gold over 4.0 metres (hole
G50-22-007NE) as part of the drill program targeting the southern
extent of the nickel trough and highlights the further potential of
this area to host significant gold mineralization.
We also drilled Karora's widest ever +1 g/t intersection at Beta
Hunt. In the Beta Block, a campaign is underway to upgrade the 30C
nickel trough and underlying Larkin Gold
Zone. As part of this campaign an exploration drillhole was
extended 250 metres past the Larkin Zone and returned a very wide
gold mineralized intercept of 1.5 g/t over 90.5 metres, including
3.2 g/t over 13.1 metres and 2.7 g/t over 6.0 metres (hole
EL-EA2-004AE). Infill drilling below the 30C nickel trough
intersected gold mineralization supporting our Larkin Zone
interpretation of three steep dipping zones ranging between 3 to 12
metres in width. The new drilling results from this area include
4.7 g/t over 5.0 metres (hole EL-EA2-004AE), 7.6 g/t over 2.1
metres (hole BL19-17AR) and 74.0 g/t over 1.0 metre (hole
BL19-20AR).
It is important to understand that Beta Hunt's current gold
Mineral Resources are entirely contained within the northern Hunt
Block, with both the Beta and Gamma Blocks remaining at very early
stages of gold exploration. As Karora continues to develop the mine
toward the south, opportunities to add to the current resource from
these southern blocks is very encouraging as highlighted by the
recent drill intersections from our exploration program."
Recent Drilling Update
The description below covers new gold results for the drill
period between August 1 to October 31,
2021 for drillholes in the Beta and Gamma Blocks. Drilling
within these areas totalled 27 holes for 3,333 metres over the
period. The Beta Block is defined as the area between the Alpha
Island Fault and the Gamma Island Fault. The Gamma Block is defined
by that area south of the Gamma Island Fault. The area north of the
Alpha Island fault is defined as the Hunt Block (see Figure 1).
Turn-around times on assay results continue to be slow, up to 6
to 8 weeks for exploration samples, for reasons previously reported
(see Karora news release dated September 8,
2021). As restrictions ease, this situation is expected to
improve going forward.
Gamma Block Drilling
The first hole (G50-22-007NE) drilled south of the 50C nickel
trough discovery intersected high grade gold mineralization
comprising a downhole intersection of 40.5 g/t over 4.0 metres. The
intersection is hosted by quartz veined and brecciated basalt
within the Lunnon footwall basalt. This hole was part of a program
targeting the southern strike extension of the 50C nickel trough.
The mineralized breccia host rock is an unusual occurrence not
observed in current gold Mineral Resources at Beta Hunt. Work is
underway to determine the significance of the breccia, including
reviewing the geological logs of adjacent drill holes with the aim
of developing an interpretation for this new mineralized host.
The recent focus of drilling within the Gamma Block is to extend
the 50C and 10C nickel mineralization within these troughs. This
new high grade gold intersection highlights the potential for the
Gamma Block to also host significant gold mineralization. Further
drilling is planned to delineate the extent and continuity of the
mineralization outlined to date, including this most recent gold
intersection.
Beta Block Drilling
Drilling focused on upgrading the 30C nickel trough and
underlying Larkin Gold Zone
supplemented by a single exploratory drill hole designed to test
for mineralization below the Beta West historical nickel mine area
– the most western margin of known nickel mineralization at Beta
Hunt.
Exploratory hole, EL-EA2-004AE, successfully confirmed the
position of the known Larkin Zone, and intersected a further three
wide zones of shear and quartz veined mineralization not previously
reported west of the Larkin Zone. The widest mineralized zone, 1.5
g/t over 90.5 metres contains a quartz-feldspar porphyry associated
with stockwork quartz veining with silica and pyrite alteration
replacing the host basalt (see Figure 4).
Porphyry intrusives at Beta Hunt have been observed to replace
sections of the mineralized shear zone up to 5 to 6 metres in
width, however, in this instance, the main porphyry is 46 metres
wide. The full mineralized interval, including the adjacent basalt
is the widest (+1g/t) intersection reported in drilling completed
by Karora at Beta Hunt. This new zone has not been tested at depth
or along strike by drilling and potentially represents the faulted
southern offset of the Fletcher Zone (see Karora news release,
September 16, 2019) located on the
north side of the Alpha Island Fault and a new, significant
opportunity to expand the gold Mineral Resource at Beta Hunt.
The potential for steep, shear-related down-dip continuity
associated with the new zones west of Larkin is supported by
mineralization intersected in drill hole EL-EA2-005AR drilled below
EL-EA2-004AE. This resource development hole was designed to target
the Larkin Zone and the mineralization below the 40C nickel
trough.
Significant results1.from testing west of Larkin are
highlighted below:
- EL-EA2-004AE: 1.5 g/t over 90.5 metres including 3.2 g/t over
13.1 metres (includes 50.9 g/t over 0.4 metres) and 2.7 g/t over
6.0m; 1.2 g/t over 15 metres
- EL-EA2-005AR: 1.2 g/t over 30.3 metres, including 2.2 g/t over
4.3 metres
1.
|
Interval lengths
are downhole widths. True estimated widths cannot be determined
with available information.
|
In the central area of the Larkin Zone, infill drilling below
the 30C nickel trough intersected additional Larkin Zone
mineralization which continued to support the current
interpretation of two to three, steep dipping, mineralized zones of
varying widths (3 metres to 12 metres) with intersections
associated with biotite-albite-pyrite altered steep-dipping shear
zones and narrow, extensional quartz veins. Significant
results1. from the most recent drilling are shown
below:
- EL-EA2-004AE: 4.7 g/t over 5.0 metres
- BL19-17AR: 7.6 g/t over 2.1 metres
- BL19-20AR: 74.0 g/t over 1.0 metres
1.
|
Interval lengths
are estimated true widths
|
Compliance Statement (JORC 2012 and NI 43-101)
The disclosure of scientific and technical information contained
in this news release has been reviewed and approved by Stephen
Devlin, FAusIMM, Group Geologist, Karora Resources Inc., a
Qualified Person for the purposes of NI 43-101.
At Beta Hunt all drill core sampling is conducted by Karora
personnel. Drill core samples for gold analysis in this instance
were shipped to ALS Laboratories, Perth for preparation and assaying by 50gram
fire assay analytical method. All gold diamond drilling samples
submitted for assay include at least one blank and one Certified
Reference Material ("CRM") per batch, plus one CRM or blank every
20 samples. In samples with observed visible gold mineralization, a
coarse blank is inserted after the visible gold mineralization to
serve as both a coarse flush to prevent contamination of subsequent
samples and a test for gold smearing from one sample to the next
which may have resulted from inadequate cleaning of the crusher and
pulveriser. The lab is also required to undertake a minimum of 1 in
20 wet screens on pulverised samples to ensure a minimum 90%
passing at -75µm. Samples for nickel analysis are shipped to SGS
Australia Mineral Services of Kalgoorlie for preparation. Pulps are
then shipped to Perth for assaying. The analytical
technique is ICP41Q, a four acid digest ICP-AES package. Assays
recorded above the upper detection limit (25,000ppm Ni) are
re-analyzed using the same technique with a greater dilution
(ICP43B). All samples submitted for nickel assay include at least
one Certified Reference Material (CRM) per batch, with a minimum of
one CRM per 20 samples. Where problems have been identified in QAQC
checks, Karora personnel and the SGS and ALS laboratory staff have
actively pursued and corrected the issues as standard
procedure.
About Karora Resources
Karora is focused on doubling gold production to 200,000 ounces
by 2024 compared to 2020 and reducing costs at its integrated Beta
Hunt Gold Mine and Higginsville Gold Operations ("HGO") in
Western Australia. The
Higginsville treatment facility is a low-cost 1.6 Mtpa processing
plant, expanding to a planned 2.5 Mtpa by 2024, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. At Beta Hunt, a robust gold Mineral Resource and Reserve is
hosted in multiple gold shears, with gold intersections along a 4
km strike length remaining open in multiple directions. HGO has a
substantial Mineral gold Resource and Reserve and prospective land
package totaling approximately 1,800 square kilometers. The Company
also owns the high grade Spargos Reward project which is
anticipated to begin mining in 2021. Karora has a strong Board and
management team focused on delivering shareholder value and
responsible mining, as demonstrated by Karora's commitment to
reducing emissions across its operations. Karora's common shares
trade on the TSX under the symbol KRR and also trade on the OTCQX
market under the symbol KRRGF.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains "forward-looking information"
including without limitation statements relating to the growth
potential of the Beta Hunt Mine, the results of exploration and
development work, liquidity and capital resources of Karora,
production guidance and the potential of the Beta Hunt Mine,
Higginsville Gold Operation, the Aquarius Project and the Spargos
Gold Project.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Karora to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to Karora 's filings with
Canadian securities regulators, including the most recent Annual
Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Karora disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
Cautionary Statement Regarding the Higginsville Mining
Operations
A production decision at the Higginsville gold
operations was made by previous operators of the mine, prior to the
completion of the acquisition of the Higginsville gold operations
by Karora and Karora made a decision to continue production
subsequent to the acquisition. This decision by Karora to continue
production and, to the knowledge of Karora, the prior production
decision were not based on a feasibility study of mineral reserves,
demonstrating economic and technical viability, and, as a result,
there may be an increased uncertainty of achieving any particular
level of recovery of minerals or the cost of such recovery, which
include increased risks associated with developing a commercially
mineable deposit. Historically, such projects have a much higher
risk of economic and technical failure. There is no guarantee that
anticipated production costs will be achieved. Failure to achieve
the anticipated production costs would have a material adverse
impact on the Corporation's cash flow and future profitability.
Readers are cautioned that there is increased uncertainty and
higher risk of economic and technical failure associated with such
production decisions.
Table 1(a): Beta Hunt Gold- Significant Results –
August 1, 2021 to October 31, 2021
(Beta & Gamma
Blocks only)
Target/Prospect
|
Hole
ID
|
Sub
interval
|
From (m)
|
To
(m)
|
Downhole Interval
(m)
|
Estimated True
Width
(m)
|
Au
(g/t)1.
|
30C/Larkin
|
BL19-17AR
|
|
117.0
|
120.2
|
3.2
|
2.1
|
7.57
|
BL19-20AR
|
|
45.3
|
49.0
|
3.8
|
3.6
|
2.77
|
|
60.0
|
61.0
|
1.0
|
1.0
|
73.97
|
B30-19-002NR
|
|
31.5
|
32.5
|
1.0
|
0.2
|
5.28
|
B30-19-008NR
|
|
38.0
|
39.5
|
1.5
|
0.1
|
18.89
|
|
46.0
|
48.1
|
2.1
|
0.1
|
3.11
|
B30-19-010NR
|
|
0.0
|
9.0
|
9.0
|
0.4
|
1.62
|
EL-EA2-002AR
|
|
48.0
|
49.0
|
1.0
|
0.9
|
4.95
|
Beta West
Gold
|
EL-EA2-004AE
|
|
102.0
|
105.4
|
3.4
|
3.1
|
2.97
|
|
131.0
|
136.6
|
5.6
|
5.0
|
4.70
|
|
230.0
|
245.0
|
15.0
|
-
|
1.19
|
|
250.0
|
251.0
|
1.0
|
-
|
4.53
|
|
267.7
|
273.4
|
5.8
|
-
|
2.30
|
|
283.0
|
286.0
|
3.0
|
-
|
2.35
|
|
297.5
|
299.6
|
2.1
|
-
|
4.27
|
|
324.5
|
415.0
|
90.5
|
-
|
1.46
|
including
|
329.1
|
339.1
|
10.0
|
-
|
1.84
|
341.2
|
354.3
|
13.1
|
-
|
3.19
|
349.7
|
350.2
|
0.4
|
-
|
50.88
|
357.8
|
360.6
|
2.8
|
-
|
1.96
|
368.8
|
370.7
|
1.9
|
-
|
1.56
|
379.0
|
383.1
|
4.1
|
-
|
1.27
|
389.0
|
398.0
|
9.0
|
-
|
1.28
|
401.0
|
407.0
|
6.0
|
-
|
2.70
|
410.0
|
415.0
|
5.0
|
-
|
2.42
|
|
440.0
|
442.0
|
2.0
|
-
|
1.13
|
50C/10C
|
G10-22-006NR
|
|
33.0
|
34.8
|
1.8
|
-
|
1.43
|
G50-22-010NR
|
|
153.6
|
156.0
|
2.4
|
-
|
1.88
|
|
173.7
|
177.0
|
3.3
|
-
|
1.43
|
G50-22-011NR
|
|
28.0
|
29.0
|
1.0
|
-
|
1.20
|
G55-22-003NE
|
|
6.0
|
7.0
|
1.0
|
-
|
1.93
|
|
10.8
|
12.05
|
1.25
|
-
|
1.05
|
G55-22-004NR
|
|
103.5
|
104.77
|
1.27
|
-
|
1.96
|
G50-22-007NE
|
|
133.4
|
133.9
|
0.5
|
-
|
26.65
|
|
190.0
|
194.0
|
4.0
|
-
|
40.51
|
including
|
193.0
|
194.0
|
1.0
|
-
|
72.01
|
|
293.7
|
296.2
|
2.9
|
-
|
3.02
|
|
G50-22-008NE
|
|
143.0
|
144.0
|
1.0
|
-
|
2.43
|
Larkin
|
EL-EA2-005AR
|
|
115.0
|
116.0
|
1.0
|
0.9
|
2.42
|
|
175.7
|
176.4
|
0.8
|
0.7
|
7.41
|
|
230.5
|
231.0
|
0.5
|
0.5
|
13.65
|
|
295.8
|
326.0
|
30.3
|
-
|
1.18
|
including
|
295.8
|
300.0
|
4.3
|
-
|
2.23
|
1.
|
Reported gold
grades > 1.0 g/t downhole.
|
2.
|
Gold grades are
uncut
|
3.
|
Estimated true
width only applicable to the Larkin Zone; All other drill
intersections are downhole widths - true estimated widths cannot be
determined with available information.
|
Table 2 Drillhole Collars – Beta Hunt from August 1, 2021 to October
31, 2021
Target/Prospect
|
Hole
ID
|
MGA_N
|
MGA_E
|
mRL
|
AZI
|
DIP
|
Total Length
(m)
|
Larkin/30C
|
BL19-09AR
|
6542602.4
|
375509.4
|
-385.5
|
22.5
|
18.5
|
125.7
|
Larkin/30C
|
BL19-13AR
|
6542601.7
|
375510.1
|
-385.4
|
51.5
|
21.6
|
113.8
|
Larkin/30C
|
BL19-17AR
|
6542529.0
|
375573.5
|
-386.5
|
9.9
|
19.2
|
134.7
|
Larkin/30C
|
BL19-20AR
|
6542528.8
|
375573.5
|
-387.8
|
34.7
|
-9.5
|
90.1
|
Larkin/30C
|
BL19-25AR
|
6542528.1
|
375574.0
|
-388.8
|
78.8
|
-61.4
|
164.7
|
Larkin/30C
|
B30-19-002NR
|
6542612.6
|
375569.4
|
-382.1
|
0.0
|
90.0
|
36.0
|
Larkin/30C
|
B30-19-003NR
|
6542618.4
|
375577.3
|
-381.4
|
0.0
|
90.0
|
65.9
|
Larkin/30C
|
B30-19-004NR
|
6542623.6
|
375586.1
|
-380.3
|
0.0
|
90.0
|
48.0
|
Larkin/30C
|
B30-19-006NR
|
6542614.4
|
375565.1
|
-382.2
|
314.0
|
53.0
|
47.3
|
Larkin/30C
|
B30-19-007NR
|
6542618.0
|
375573.5
|
-382.2
|
324.0
|
56.0
|
47.5
|
Larkin/30C
|
B30-19-008NR
|
6542622.7
|
375580.8
|
-381.9
|
339.0
|
59.0
|
65.7
|
Larkin/30C
|
B30-19-009NR
|
6542622.8
|
375580.5
|
-382.2
|
328.0
|
40.0
|
62.8
|
Larkin/30C
|
B30-19-010NR
|
6542611.8
|
375573.8
|
-383.1
|
136.0
|
31.0
|
59.6
|
Larkin/30C
|
B30-19-011NR
|
6542616.8
|
375581.6
|
-382.1
|
157.0
|
45.0
|
41.7
|
Larkin/30C
|
B30-19-012NR
|
6542617.1
|
375581.8
|
-382.1
|
126.0
|
52.0
|
47.6
|
Larkin/30C
|
B30-19-014NR
|
6542623.0
|
375589.2
|
-381.0
|
130.0
|
71.0
|
51.0
|
Larkin
|
EL-EA2-002AR
|
6542925.4
|
375514.4
|
-416.5
|
246.1
|
39.4
|
194.9
|
Beta West
|
EL-EA2-004AE
|
6542925.3
|
375514.5
|
-417.7
|
245.2
|
-6.1
|
463.0
|
10C
|
G10-22-006NR
|
6541836.2
|
376257.6
|
-330.5
|
101.0
|
67.0
|
107.8
|
10C
|
G10-22-008NR
|
6541862.2
|
376232.7
|
-330.4
|
229.0
|
80.0
|
101.5
|
50C
|
G50-22-006NE
|
6541840.1
|
376249.0
|
-333.1
|
215.0
|
33.0
|
176.6
|
50C
|
G50-22-010NR
|
6541847.8
|
376243.1
|
-333.3
|
223.0
|
25.0
|
200.8
|
50C
|
G50-22-011NR
|
6541847.8
|
376243.1
|
-333.2
|
223.0
|
33.0
|
152.8
|
50C
|
G50-22-013NE
|
6541860.9
|
376232.2
|
-334.6
|
229.0
|
22.0
|
212.6
|
50C
|
G50-22-014NE
|
6541860.9
|
376232.3
|
-334.7
|
229.0
|
15.0
|
218.7
|
50C
|
G55-22-003NE
|
6541840.0
|
376249.1
|
-333.4
|
192.0
|
27.0
|
176.8
|
50C
|
G55-22-004NR
|
6541848.5
|
376243.2
|
-331.8
|
223.0
|
44.0
|
125.2
|
Note:
Eastings and Northings in MGA, Zone 51.
|
|
|
|
|
SOURCE Karora Resources Inc.