Highlights:
- Beta Hunt Gold Measured and Indicated Mineral Resources
increased by 7% to 1.12 million ounces and Inferred Mineral
Resource increased by 46% to 786,000 ounces
- Significant Beta Hunt additions include:
-
- Maiden Larkin Mineral Resource comprising Measured and
Indicated 1.44 million tonnes @ 2.6g/t for 119,000 ounces and
Inferred 2.17 million tonnes @ 2.3g/t for 162,000 ounces
- On a consolidated basis Karora's Gold Measured and Indicated
Mineral Resource inventory increased by 8% to 2.71 million ounces
net of mining depletion
- On a consolidated basis, Karora's Gold Inferred Mineral
Resources increased by 43% to 1.21 million ounces
- The expanded Mineral Resource further supports Karora's
Growth Plan to increase production to a targeted 185,000 - 205,000
ounces per annum by 2024
TORONTO, April 7,
2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX:
KRRGF) ("Karora" or the "Corporation") is pleased to announce its
Consolidated Gold Measured and Indicated ("M&I") Mineral
Resource, net of depletions, has increased by 8% and the
Consolidated Inferred Mineral Resources have increased by 43%. The
update is highlighted by the addition of the maiden Larkin Zone
Mineral Resource at Beta Hunt which contributed 1.44 million tonnes
@ 2.6 g/t for 119,000 ounces in the M&I category and 2.17
million tonnes @ 2.3 g/t for 162,000 ounces in the Inferred
category.
Paul Andre Huet, Chairman &
CEO, commented: "We are very pleased to announce robust increases,
net of mining depletion, to our Consolidated Gold Mineral Resource
in the M&I category to over 2.7 million ounces and over 1.2
million ounces in the Inferred category.
In particular, the addition of the maiden Mineral Resource for
the Larkin Zone at Beta is exciting as it demonstrates how quickly
we were able to move from the initial discovery of the zone
announced in September 2020 (see
Karora news release dated September 10,
2020) to the development of our first Mineral Resource of
119,000 ounces in the M&I category and a further 162,000 ounces
in the Inferred category. The Larkin Zone has been delineated to a
strike length of over 1,000 metres and a depth of 150 metres and
remains open along strike and at depth providing significant
potential for further expansion as our drill program at Beta Hunt
continues. Our ability to rapidly convert new discoveries at Beta
Hunt bodes well for future Mineral Resource updates as we continue
to drill at our other recent discoveries at the mine – the Fletcher
Shear Zone and the Gamma Block.
Our success in expanding the Beta Hunt Mineral Resource is a
critical component of our growth plan to increase production to our
guided range of 185,000-205,000 ounces annually by 2024.
Approximately 80% of our mill feed will come from our flagship Beta
Hunt mine once operations are fully expanded to the schedule
outlined in our growth plan."
Gold Mineral Resource
Summary
Table 1: Gold– Consolidated Mineral Resources as at
January 31, 2022
Jan-2022
Mineral
Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Beta Hunt
|
628
|
2.3
|
46
|
12,583
|
2.7
|
1,079
|
13,210
|
2.6
|
1,124
|
9,426
|
2.6
|
786
|
Higginsville
|
15,449
|
1.3
|
657
|
16,262
|
1.8
|
930
|
31,711
|
1.6
|
1,587
|
6,372
|
2.1
|
428
|
Total
|
16,077
|
1.5
|
703
|
28,845
|
2.1
|
2,009
|
44,921
|
1.9
|
2,712
|
15,798
|
2.5
|
1,214
|
Note: Refer to
detailed footnotes below
|
Updated Consolidated Measured and Indicated ("M &I") Gold
Mineral Resource totals 2.71 million ounces, an increase of 8% over
September the 30, 2020 estimate. Updated Consolidated Inferred Gold
Mineral Resource now totals 1.21 million ounces, representing a 43%
increase. The result continues the trend of increasing Mineral
Resources (Figure 1) in support of the Company's Growth Plan (see
Karora news release, June 28, 2021).
Major contributors to the increase in Mineral Resources are the
Larkin Zone at Beta Hunt, and the Spargos Deposit at Higginsville,
both detailed below:
-
-
- Maiden Larkin Mineral Resource comprises Measured and Indicated
1.44 million tonne @ 2.6 g/t for 119,000 ounces and Inferred 2.17
million tonnes @ 2.3g/t for 162,000 ounces
- Spargos Reward Mineral Resource comprises Measured and
Indicated 1.01 million tonnes @ 3.0 g/t for 105,000 ounces and
Inferred 0.40 million tonnes @ 3.5g/t for 45,000 ounces added to
the Consolidated Mineral Resource (previously report in Karora news
release dated June 28, 2021)
Beta Hunt
Summary
Table 2: Beta Hunt Gold Mineral Resources as at 31 January, 2022
Jan 2022
Mineral
Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Western
Flanks
|
315
|
2.4
|
25
|
8,446
|
2.8
|
747
|
8,762
|
2.7
|
772
|
4,959
|
2.7
|
437
|
A Zone
|
312
|
2.1
|
21
|
2,696
|
2.5
|
212
|
3,008
|
2.4
|
233
|
2,297
|
2.5
|
187
|
Larkin Zone
|
0
|
0
|
0
|
1,441
|
2.6
|
119
|
1,441
|
2.6
|
119
|
2,170
|
2.3
|
162
|
Total
|
628
|
2.3
|
46
|
12,583
|
2.7
|
1,079
|
13,210
|
2.6
|
1,124
|
9,426
|
2.6
|
786
|
Note: Refer to
detailed footnotes below
|
Exploration and resource definition activities at Beta Hunt in
2021 were concentrated on the newly discovered Larkin Zone and
infill and extensional drilling of the A Zone and Western
Flanks.
The Larkin Zone was discovered in late 2020 as part of a drill
program targeting the 30C nickel trough which lies directly above
the gold mineralization. The Larkin Zone is Karora's first gold
Mineral Resource south of the Alpha Island Fault (AIF) and is
interpreted as the southern fault off-set extension of the Western
Flanks. The Larkin Zone remains open along strike to the south and
down-dip.
The A Zone drilling tested both the northern up-plunge and
down-dip extensions of the Sept 2020
Mineral Resource. The Western Flanks drilling, both along strike
and down-dip, upgraded and extended both the northern and southern
margins of the September 2020
Inferred Mineral Resource. Both the A zone and Western Flanks
remain open down-dip with the A Zone still open to the north.
Targeted drilling at Beta Hunt continues to grow the Gold
Mineral Resource inventory in support of the Karora Growth Plan
which is underpinned by an expansion to 2.0 Mtpa mine production
from Beta Hunt by 2024. At January 31,
2022, Measured and Indicated Mineral Resources totaled 13.21
million tonnes grading 2.6 g/t for 1,124,000 ounces, an increase of
69,000 ounces, or 7% compared to the 2020 Measured and Indicated
Mineral Resource estimate. At January 31,
2022, Inferred Mineral Resources totaled 9.43 million tonnes
grading 2.6 g/t for 786,000 ounces, an increase of 249,000 ounces,
or 46%, compared to the 2020 Inferred Mineral Resource estimate.
The new Mineral Resource incorporates updates to both A Zone and
Western Flanks with the bulk of the increased resources due to the
addition of the Larkin Zone which makes up 11% (119,000 ounces) of
the Beta Hunt Measured and Indicated Mineral Resource and 21%
(162,000 ounces) of the Inferred Mineral Resource. The Beta Hunt
Mineral Resource estimate is net of mine production depletion of
1.16 million tonnes grading 2.9 g/t for 108,000 ounces over the
period October 1, 2020 to
January 31, 2022.
For 2022, drilling at Beta Hunt will continue to extend and
upgrade the Western Flanks, A Zone and new Larkin Zone resources.
In addition, exploration drilling will test the along strike
continuity of the Fletcher Zone, target parallel mineralized zones
to the Larkin Zone in the Beta Block as well as new mineralization
identified in the Gamma Block.
Larkin Zone
The first-ever Gold Mineral Resource was completed for the
Larkin Zone (see table 2) and comprises Measured and Indicated,
1.44 million tonnes grading 2.6 g/t (119,000 ounces) and Inferred
2.17 million tonnes grading 2.3 g/t (162,000 ounces). The Mineral
Resource is located south of the Alpha Island Fault (AIF) in the
Beta Block and represents Karora's first resource south of this
Fault. The Larkin Zone is interpreted as the southern off-set
extension to the Western Flanks deposit.
The Larkin Mineral Resource incorporates both historical nickel
holes and more recent drilling targeted at the Larkin Zone and the
overlying 30C nickel Mineral Resource (see Karora's Technical
Report, February 1, 2021 at
www.sedar.com). Through calendar 2020 and 2021, Karora completed
126 exploration and resource definition holes totalling 16,504
metres to define both gold and nickel mineralization in the Beta
Block. The maiden Larkin Mineral Resource includes the results of
286 holes.
Gold mineralization in the Larkin Zone is hosted in the Lunnon
Basalt below the 30C nickel trough and comprises a series of
mineralized sheared, veined and altered zones steeply dipping to
the west, and striking north north-west. The exception to this is a
western footwall mineralized pod which strikes west-northwest in
contrast to the general Beta Hunt mineralized trend. Mineralized
lenses vary in thickness from 1 metre to 15 metres wide. The Larkin
Zone is mineralized over approximately 1.1 kilometres of strike
length with the northern part containing the higher grade and
greater thickness in multiple lenses.
Mineralized zones are associated with shearing, biotite-pyrite
alteration, albite alteration and quartz veining and broadly follow
the nickel mineralized troughs at the top of the basalt. At the
Larkin Zone's northern end there are up to eight subparallel gold
mineralized zones interpreted beneath the nickel mineralization.
Mineralization generally dips steeply west with thrusting close to
the basalt-ultramafic contact, producing shallower dips nearer the
contact.
A block model was created using Studio RM software using a
parent block size of 5 metres x 5 metres x 5 metres vertical with
sub-blocking to 1 metre by 1 metre by 2.5 metres. Ordinary kriging
(OK) with dynamic anisotropy was used for the grade estimation. The
final gold grade was made using the top-cut drill composites only.
The model was depleted for mine voids.
The deposit was classified as Indicated or Inferred Mineral
Resource based on a combination of quantitative and qualitative
criteria which included geological continuity and confidence in
volume models, data quality, sample spacing, lode continuity, and
estimation parameters.
Higginsville
Summary
Resource definition drilling in 2021 was focused on infilling
and extending near-mill resources. Additional drilling was also
undertaken to upgrade the Spargos deposit. Results from the
drilling were used to update existing mineral resources and produce
two new resources at Aquarius and Spargos. The Spargos Mineral
Resource was previously reported in Karora news release,
June 28, 2021.
Reporting for the Higginsville Mineral Resource inventory is
split into two main areas – Higginsville Central and Higginsville
Greater. The former covers Mineral Resources within a radius
approximately 10 kilometres of the Higginsville mill while
Higginsville Greater covers all Mineral Resources that fall outside
the Higginsville Central area.
At January 31, 2022, Measured and
Indicated Gold Mineral Resources at Higginsville totaled 31.71
million tonnes grading 1.6 g/t for 1,587,000 ounces, an increase of
121,000 ounces, or 8%, compared to the September 30, 2020 Measured and Indicated
Resource of 1,466,000 ounces. This increase mainly reflects a
successful drilling campaign which supported the upgrade of the
Historical Spargos Mineral Resource into Karora's Consolidated
Mineral Resource. At January 31,
2022, Inferred Mineral Resources totaled 6.37 million tonnes
grading 2.1 g/t for 428,000 gold ounces, an increase of 118,000
ounces, from the September 2020
Inferred Mineral Resource estimate of 310,000 ounces. The
consolidated Higginsville Mineral Resource is net of mine
production depletion of 0.6 million tonnes grading 2.1 g/t for
41,000 ounces over the period October 1,
2020 to January 31, 2022.
For 2022, exploration and resource definition drilling at
Higginsville is planned to upgrade and extend short-term mining
production targets (0 – 2 years) complemented by a strong
commitment to greenfields exploration targeting significant new
discoveries. The initial drilling focus for 2022 resource
definition includes extensional and infill drilling to potentially
support an underground mine at Spargos and ongoing extensional
drilling around the existing underground mines at Two Boys and
Aquarius within the Higginsville Central area.
Table 4: Higginsville Gold Mineral Resources as of
31 January 2022
January-2022
Mineral Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
HGO Central
|
847
|
3.1
|
85
|
3,380
|
2.8
|
307
|
4,227
|
2.9
|
392
|
1,724
|
3.1
|
172
|
HGO Greater
|
12,224
|
1.3
|
514
|
12,882
|
1.5
|
624
|
25,106
|
1.4
|
1,137
|
4,647
|
1.7
|
256
|
Stockpiles
|
2,378
|
0.8
|
58
|
|
|
|
2,378
|
0.8
|
58
|
|
|
|
Total
|
15,449
|
1.3
|
657
|
16,262
|
1.8
|
930
|
31,711
|
1.6
|
1,587
|
6,372
|
2.1
|
428
|
Note: Refer to
detailed footnotes below
|
Looking Ahead
An updated Nickel Mineral Resource estimate is expected to be
released in the second quarter of 2022 and Karora's Annual Mineral
Reserves and Resource Statement is planned to be announced in Q4
2022 in conjunction with the Corporation's annual budgeting
cycle.
Compliance Statement (JORC 2012
and NI 43-101)
Mr. Stephen Devlin is Group Geologist for Karora, a full
time employee of Karora and a Fellow of the AusIMM. Mr Devlin has sufficient experience that is
relevant to the style of mineralization and type of deposit under
consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the JORC Code, 2012 Edition, and
fulfils the requirements to be a "Qualified Person" for the
purposes of NI 43-101. Mr Devlin
has reviewed and approved the disclosure of the technical
information for the Beta Hunt and Higginsville Gold Mineral
Resource included in this news release.
The "JORC Code" means the Australasian Code for Reporting of
Mineral Resources and Ore Reserves prepared by the Joint Ore
Reserves Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Mineral
Council of Australia. There are no material differences
between the definitions of Mineral Resources under the applicable
definitions adopted by the Canadian Institute of Mining, Metallurgy
and Petroleum (the "CIM Definition Standards") and the
corresponding equivalent definitions in the JORC Code for Mineral
Resources.
Detailed Footnotes relating to
Mineral Resource Estimates as at January
31,2022
- Mineral Resources are not Mineral Reserves and do not have
demonstrated economic viability. There is no certainty that all or
any part of the Mineral Resources estimated will be converted into
Mineral Reserves.
- The Measured and Indicated Mineral Resources are inclusive of
those Mineral Resources modified to produce Mineral Reserves.
- The Mineral Resource estimates include Inferred Mineral
Resources that are normally considered too speculative geologically
to have economic considerations applied to them that would enable
them to be categorized as Mineral Reserves. There is also no
certainty that Inferred Mineral Resources will be converted to
Measured and Indicated categories through further drilling, or into
Mineral Reserves once economic considerations are applied.
- The Gold Mineral Resource are estimated using a long term gold
price of US$1,600/oz with a US:AUD
exchange rate of 0.70.
- Gold Mineral Resources were estimated using variable cut-off
grades taking into account variable operational costs: Beta Hunt
and Higginsville Underground (Chalice, Trident and Aquarius) -
1.3g/t, Higginsville Open Pits (excluding Mt Henry Project) –
0.5g/t, Mt Henry Project – 0.4g/t, Spargos uses a 0.5 g/t Au
cut-off grade above 300mRL and 1.6g/t below 300mRL.
- To best represent "reasonable prospects of eventual economic
extraction" the mineral resource for open pits has been reported
within optimized pit shells at A$2,285 (US$1,600)
and, for underground resources, areas considered sterilized by
historical mining are depleted from the Mineral Resource.
- Mineral Resource tonnage and contained metal have been rounded
to reflect the accuracy of the estimate, and numbers may not add
due to rounding.
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 of
technical studies 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.
SOURCE Karora Resources Inc.