Highlights:
- Further drilling to extend the 50C nickel trough discovery
has confirmed significant nickel mineralization over 200
metres in strike and up to 120 metres in width.
- New drilling north of the previously reported high grade 50C
discovery hole G50-22-005E (11.6% Ni over 4.6 metres downhole) has
intersected further high grade nickel mineralization, including
intersections1 of:
-
- G50-22-011NR: 3.2% Ni over 3.1 metres
- G55-22-006NR: 5.1% Ni over 2.1 metres
- G50-22-004NR: 2.1% Ni over 7.5 metres, including 4.0% Ni
over 3.0 metres
- Infill drilling of the 10C nickel trough, which lies
adjacent to the 50C trough, has returned encouraging results that
support the current Mineral Resource and include the following
intersections1.:
-
- G10-22-008NR: 3.8% Ni over 10.9 metres, including 5.2% Ni
over 3.8 metres
- G10-22-011NR: 4.2% Ni over 3.0 metres
- Nickel mineralization in the Beta Hunt Gamma Block remains
open to the southeast beyond the 10C and newly defined 50C nickel
troughs, with an encouraging historic drill intersection of 11.4%
Ni over 9.5 metres located 1 kilometre southeast of current Karora
drilling.
- Results from the 30C nickel trough drilling provide
encouragement for an extension of the current Mineral Resource and
include the significant results1:
-
- B30-19-008NR: 2.0% Ni over 8.9 metres
- B30-19-018NR: 2.4% Ni over 2.3 metres
- B30-19-020NR: 3.9% Ni over 1.3 metres
1.
Downhole intervals. True widths cannot be determined with
currently available information.
|
TORONTO, March 1, 2022 /CNW/ - Karora Resources Inc. (TSX:
KRR) (OTCQX: KRRGF) ("Karora" or the "Corporation") is pleased to
announce that new nickel exploration results from the 50C nickel
trough at Beta Hunt have extended the known strike length to over
200 metres (previously 150 metres, see Karora news release dated
October 8, 2021). The new results
include drilling along strike of the 50C discovery and the parallel
10C nickel trough.
Paul Andre Huet, Chairman &
CEO, commented: "We are very pleased with the latest results
received from our nickel drilling program at the 50C nickel
discovery and parallel 10C nickel trough. The new drilling supports
the extension of the 50C discovery to over 200 metres in strike
length and up to 120 metres in width, all delivered in just 10
months since discovery (see Karora news release dated April 6, 2021). A key feature of the Beta Hunt
Mine is the extensive existing mining infrastructure. This provides
us with the advantage of moving very rapidly from initial discovery
to Mineral Resource definition and, ultimately, with the goal of
mining.
Drilling results from the 10C nickel trough further support
our objective to upgrade and extend the existing 10C nickel Mineral
Resource, which forms part of the current Beta South Mineral
Resource. Our team is now working on a new nickel mineralization
model for the Gamma Block that will utilize the new drill results
from both 50C and 10C to enhance identification of drill-ready
targets. We will use this model to support an updated nickel
Mineral Resource incorporating the 50C discovery and 10C upgrade
and extension during the second quarter of 2022.
The potential growth of the 50C and 10C nickel mineralization is
not capped at the current strike length. A historic drill
intersection of 11.4% Ni over 9.5 metres is located approximately 1
kilometre southeast of our current drilling, supporting our
hypothesis that nickel mineralization may be significantly more
extensive – an exciting prospect.
With respect to the new 50C nickel discovery, which is
located just 140 metres from existing mine development, we expect
to move rapidly to grow our nickel production and, increase our
nickel by-product credits which would then further reduce our
overall AISC gold production costs in future years. Mine planning
for the Gamma Block is underway with a view to bring these new
nickel areas into production as soon as practicable with the goal
of first mining taking place in the first half of 2023.
Lastly, new drill results received from the 30C nickel trough,
located proximal to the Larkin Gold Zone, demonstrate the potential
to further extend the nickel Mineral Resource in this area. To
be able to move this quickly from discovery into production yet
again demonstrates the infrastructure advantage we enjoy at Beta
Hunt."
Gamma Block - 50C and 10C Nickel Troughs
The drill program designed to test and extend the recently
discovered 50C nickel trough and upgrade the 10C nickel Mineral
Resource was completed. Drilling totaled 40 holes for 6,505 metres.
All results have now been received. The original 50C discovery was
highlighted by the previously reported intersection of 11.6% nickel
over 4.6 metres (downhole) in drill hole G50-22-005E.
50C Drilling: Drilling both north and south along
strike from the discovery intersection (hole G50-22-005E) now
supports continuous nickel sulphide mineralization over 200 metres
in strike length (Figure 1). The new intersections are spaced
on drill fans targeted to intersect the trough on 30 to 50 metre
line spacings. Results from drill hole G55-22-002NE on the
discovery section were received and show the 50C trough to be up to
120 metres in width (Figure 2).
Assay highlights include:
- G50-22-011NR: 3.2% Ni over 3.1 metres1
- G50-22-004NR: 2.1% Ni over 7.5 metres1, including
4.0% Ni over 3.0 metres
- G55-22-006NR: 5.1% Ni over 2.1 metres
- G50-22-014NE: 3.7% Ni over 2.0 metres
- G50-22-010NR: 2.7% Ni over 3.2 metres
- G50-22-002NE: 1.3% Ni over 1.6 metres
1.
Downhole intervals. True widths cannot be determined with
currently available information.
|
Nickel mineralization on the targeted basalt/ultramafic contact
has been logged as massive, matrix-supported and disseminated
nickel sulphide and indicate an intact nickel trough.
As previously referenced (see Karora news release dated
October 8, 2021), porphyry intrusions
in the northern drill sections have replaced parts of the nickel
contact mineralization position as drilling moves north toward the
Gamma Island Fault. Overall, results show an extensive, wide and
continuous nickel trough supporting the discovery section (Figure
3).
10C Drilling: The 10C nickel trough is a parallel
trough east of the 50C and is part of the Beta South Mineral
Resource (see Technical Report Higginsville-Beta Hunt Operation,
Eastern Goldfields, Western
Australia dated January 29,
2021 available under Karora's profile at www.sedar.com). The
10C drill program is designed to upgrade the existing Inferred
Mineral Resource and extend known nickel mineralization. The 10C
results are highlighted by an intersection of 3.8% nickel over 10.9
metres, including 5.2% nickel over 3.8 metres in drill hole
G10-22-008NR (Figure 2). The atypical thickness in this
intersection is believed to be due to thrust-related stacking of
the nickel sulphide horizon. This is not an unusual geological
setting at Beta Hunt where this type of structural repetition is
evident from historical mining of these nickel deposits. Overall,
assay results to date support the current Mineral Resource.
Significant results1 returned to date from the 10C
drilling are highlighted below:
- G10-22-008NR: 3.8% Ni over 10.9 metres, including 5.2% Ni over
3.8 metres
- G10-22-011NR: 4.2% Ni over 3.0 metres
- G10-22-007NR: 3.3% Ni over 2.2 metres
- G10-22016NR: 3.3% Ni over 2.3 metres
1.
Downhole intervals. True widths cannot be determined with
currently available information.
|
The 50C and 10C recent drill results continue to reinforce the
potential for a significant nickel mineralized system similar to
the Beta Nickel Block which historically produced approximately
33,000 nickel tonnes.
With the new 50C area only 140 metres from existing mine
development, this represents a significant growth opportunity for
by-product nickel production at Beta Hunt. Mine planning is
underway to ensure sufficient ventilation, infrastructure and
resources are available to enable development to commence as soon
as possible.
All nickel assay results from the first stage of drilling the
Gamma Block have now been received and work has commenced on
producing a revised nickel mineralization model to assist in
designing a follow-up drill program planned for the second half of
2022. An updated nickel resource that includes the 10C and newly
defined 50C nickel trough is expected to be completed during the
second quarter of 2022.
30C Nickel Trough and Western Flanks Nickel
Outside of the Gamma Block drilling, nickel results were also
received for drill holes designed to extend and upgrade the 30C
nickel resource. This included dual purposing of drill holes
to upgrade the Western Flanks Gold resource by extending the
gold focused holes to also test for nickel mineralization on the
ultramafic/basalt contact.
Results from the 30C drilling provide encouragement for an
extension of the current Mineral Resource and include the
significant results1 listed below:
- B30-19-008NR: 2.0% Ni over 8.9 metres
- B30-19-018NR: 2.4% Ni over 2.3 metres
- B30-19-020NR: 3.9% Ni over 1.3 metres
1.
Downhole intervals. True widths cannot be determined with
currently available information.
|
The limited amount of gold-targeted drilling extended to test
for nickel mineralization above the northern end of the Western
Flanks Mineral Resource confirmed the presence of nickel sulphide
mineralization on the basalt/ultramafic contact.
Follow-up work, including reviewing of all historical drill
data, is planned to fully assess the nickel potential prior to the
next stage of follow-up drilling. The best result received from the
new Western Flanks extension drilling is shown below and highlights
the potential for a new nickel trough discovery at Beta Hunt by
Karora:
- AW17LN-17AR: 1.2% Ni over 2.0 metres1
1.
Downhole interval. True widths cannot be determined with
currently available information.
|
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. Samples for gold analysis are shipped to SGS Mineral
Services of Kalgoorlie for preparation and assaying by 50 gram 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 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 came into
production 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 timing for
the completion of technical studies, , the new nickel exploration
results at Beta Hunt, the timing of the updated resource estimate
and additional production of nickel, at Beta Hunt, 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 – Nickel –Significant Intersections –
Nickel1 (January 31,
2022)
Hole ID
|
Sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)
|
% Ni
2.
|
AW17LN-17AR
|
|
258.0
|
260.0
|
2.0
|
1.23
|
B25-20-010NE
|
|
26.9
|
27.5
|
0.6
|
1.1
|
B30-19-001NR
|
|
15.3
|
19.0
|
3.7
|
1.08
|
|
21.1
|
21.7
|
0.6
|
1.51
|
|
36.0
|
36.2
|
0.3
|
1.03
|
B30-19-008NR
|
|
26.6
|
27.0
|
0.4
|
1.7
|
|
31.7
|
32.0
|
0.3
|
1.09
|
B30-19-015NR
|
|
3.1
|
12.0
|
8.9
|
2.03
|
|
17.0
|
18.0
|
1.0
|
1.29
|
B30-19-018NR
|
|
50.0
|
52.3
|
2.3
|
2.37
|
B30-19-020NR
|
|
4.2
|
5.5
|
1.3
|
3.92
|
B30-19-022NR
|
|
48.3
|
49.5
|
1.2
|
1.87
|
|
54.2
|
54.6
|
0.4
|
6.96
|
BL19-17AR
|
|
88.0
|
91.0
|
3.0
|
1.5
|
BL19-20AR
|
|
51.8
|
52.3
|
0.5
|
1.11
|
G10-22-006NR
|
|
74.3
|
75.6
|
1.4
|
1.95
|
G10-22-007NR
|
|
88.8
|
91.0
|
2.2
|
3.28
|
G10-22-008NR
|
|
62.8
|
63.2
|
0.4
|
2.47
|
|
67.9
|
78.8
|
10.9
|
3.75
|
including
|
67.9
|
72.8
|
4.9
|
4.04
|
including
|
75.0
|
78.8
|
3.8
|
5.21
|
G10-22-010NR
|
|
95.9
|
96.2
|
0.4
|
1.06
|
G10-22-011NR
|
|
76.0
|
79.0
|
3.0
|
4.17
|
G10-22-012NR
|
|
102.4
|
103.0
|
0.6
|
6.41
|
G10-22-013NR
|
|
97.7
|
98.1
|
0.3
|
3.38
|
G10-22-016NR
|
|
108.8
|
111.1
|
2.3
|
3.30
|
|
113.9
|
114.1
|
0.2
|
9.42
|
|
173.4
|
174.8
|
1.4
|
1.85
|
|
188.0
|
189.0
|
1.0
|
1.02
|
G10-22-017NR
|
|
98.6
|
103.0
|
4.4
|
1.89
|
G10-22-018NR
|
|
81.0
|
81.5
|
0.5
|
1.11
|
|
92.3
|
95.9
|
3.6
|
1.43
|
|
98.0
|
98.6
|
0.6
|
1.02
|
|
102.0
|
103.4
|
1.4
|
1.14
|
G50-22-009NR
|
|
173.4
|
174.0
|
0.6
|
4.48
|
G50-22-010NR
|
|
153.6
|
156.8
|
3.2
|
2.73
|
G50-22-011NR
|
|
132.0
|
135.1
|
3.1
|
3.22
|
|
139.9
|
140.5
|
0.6
|
1.1
|
G50-22-012NE
|
|
172.6
|
172.8
|
0.2
|
3.37
|
G50-22-014NE
|
|
140.7
|
141.2
|
0.5
|
1.39
|
|
192.5
|
194.5
|
2.0
|
3.70
|
G55-22-002NE
|
|
91.0
|
92.3
|
1.6
|
1.3
|
G55-22-003NE
|
|
113.8
|
114.6
|
0.8
|
5.08
|
|
140.1
|
140.6
|
0.5
|
1.13
|
G55-22-004NR
|
|
103.5
|
111.0
|
7.5
|
2.05
|
including
|
103.5
|
106.5
|
3.0
|
4.00
|
G55-22-006NR
|
|
161.0
|
163.1
|
2.1
|
5.09
|
G55-22-005NE
|
|
112.9
|
113.7
|
0.8
|
9.84
|
G55-22-008NE
|
|
173.6
|
175.0
|
1.4
|
1.95
|
|
181.0
|
181.4
|
0.4
|
1.28
|
|
184.0
|
185.5
|
1.5
|
1.2
|
G55-22-009NE
|
|
198.7
|
199.6
|
0.9
|
1.14
|
G55-22-010NE
|
|
172.3
|
174.0
|
1.7
|
2.57
|
G50-22-008NE
|
|
155.0
|
156.7
|
1.7
|
1.01
|
|
163.5
|
164.0
|
0.5
|
1.4
|
|
196.5
|
197.0
|
0.5
|
1.03
|
1.
Downhole widths. Estimated true widths cannot be determined with
available information. 2. Reported
nickel grades > 1%.
|
Table 2: Beta Hunt - Nickel Drill Hole Locations (for Results
Reported January 31, 2022)
Hole
ID
|
MGA N
|
MGA E
|
mRL
|
Azi
(degrees)
|
Dip
(degrees)
|
Total
Length
(m)
|
AW17LN-17AR
|
6544638
|
374511
|
-255
|
229
|
22
|
267.0
|
BL19-17AR
|
6542529
|
375573.7
|
-386
|
10
|
19
|
135.0
|
BL19-20AR
|
6542529
|
375573.7
|
-388
|
35
|
-10
|
90.0
|
B25-20-010NE
|
6542479
|
375816.5
|
-334
|
75
|
68
|
51.0
|
B30-19-001NR
|
6542609
|
375563.6
|
-381
|
235
|
80
|
48.0
|
B30-19-008NR
|
6542623
|
375581
|
-382
|
339
|
59
|
66.0
|
B30-19-015NR
|
6542663
|
375524.8
|
-380
|
241
|
73
|
33.0
|
B30-19-018NR
|
6542670
|
375523
|
-380
|
18
|
59
|
68.0
|
B30-19-020NR
|
6542644
|
375543.4
|
-382
|
240
|
42
|
63.0
|
B30-19-022NR
|
6542654
|
375538.9
|
-380
|
48
|
63
|
69.0
|
G10-22-006NR
|
6541837
|
376257.7
|
-330
|
101
|
67
|
108.0
|
G10-22-007NR
|
6541863
|
376232.6
|
-331
|
229
|
64
|
105.0
|
G10-22-008NR
|
6541863
|
376232.9
|
-330
|
229
|
80
|
102.0
|
G10-22-010NR
|
6541900
|
376203.8
|
-338
|
230
|
75
|
107.0
|
G10-22-011NR
|
6541901
|
376204.1
|
-337
|
50
|
89
|
114.0
|
G10-22-012NR
|
6541926
|
376184.8
|
-343
|
228
|
62
|
114.0
|
G10-22-013NR
|
6541926
|
376184.8
|
-343
|
228
|
73
|
119.0
|
G10-22-016NR
|
6541934
|
376178.4
|
-344
|
230
|
48
|
195.0
|
G10-22-017NR
|
6541934
|
376178.8
|
-344
|
230
|
66
|
126.0
|
G10-22-018NR
|
6541863
|
376232.9
|
-330
|
229
|
85
|
116.0
|
G50-22-009NR
|
6541848
|
376243.2
|
-333
|
223
|
19
|
222.0
|
G50-22-010NR
|
6541848
|
376243.2
|
-333
|
223
|
25
|
201.0
|
G50-22-011NR
|
6541848
|
376243.2
|
-333
|
223
|
33
|
153.0
|
G50-22-012NE
|
6541862
|
376232.2
|
-333
|
229
|
15
|
297.0
|
G50-22-014NE
|
6541861
|
376232.4
|
-335
|
229
|
15
|
219.0
|
G55-22-002NE
|
6541841
|
376249.3
|
-331
|
215
|
55
|
114.0
|
G55-22-003NE
|
6541840
|
376249.3
|
-333
|
192
|
27
|
177.0
|
G55-22-004NR
|
6541849
|
376243.4
|
-332
|
223
|
44
|
125.0
|
G55-22-006NR
|
6541900
|
376203.4
|
-338.6
|
230
|
37
|
197.7
|
G55-22-005NE
|
6541862
|
376232.4
|
-333
|
229
|
44
|
120.0
|
G55-22-008NE
|
6541925
|
376184.9
|
-343
|
230
|
48
|
210.0
|
G55-22-009NE
|
6541933
|
376178.4
|
-345
|
230
|
38
|
207.0
|
G55-22-010NE
|
6541900
|
376203.1
|
-338
|
230
|
45
|
183.0
|
G50-22-008NE
|
6541840
|
376249.3
|
-333.2
|
192
|
19
|
200.9
|
Note: Eastings and
Northings in MGA, Zone 51
|
SOURCE Karora Resources Inc.