Highlights:
- "Larkin Gold Zone" – New broad, high-grade gold discovery
south of Alpha Island Fault1.2.:
-
- BE30-003: 8.2 g/t over 3.9
m
- BE30-004: 3.3 g/t over 15.8
m
- BE30-007: 3.9 g/t over 11.0
m
- BE30-010: 15.3 g/t over 3.5
m
- BE30-011: 7.4 g/t over 8.9
m
- Wall Sample (BD40ACCLHW_002): 5.0 g/t over 14.4 m, including 22.7 g/t over 2.6 m
- "30C Nickel Trough" - First new nickel discovery at Beta
Hunt in 13 years1.2:
-
- BE30-007: 3.8% Ni over 2.3
m
- BE30-009: 7.7% Ni over 1.3
m
- BE30-010: 8.6% Ni over 1.0
m
1.
|
Result show
downhole thickness. True thickness cannot be estimated with
available information
|
2.
|
Tables showing
complete results and drill hole locations can be found at the end
of this news release.
|
- Increased Exploration Budget – As a result of drilling
success year to date and the multiple high quality
exploration targets at both Western Australian operations, the 2020
exploration budget has been increased by ~50% to A$15M from the previous A$9.5-A$10M
TORONTO, Sept. 10, 2020 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Corporation") is pleased to announce
the discovery of new high-grade gold and nickel zones – the Larkin
Gold Zone and 30C Nickel Trough – at its Beta Hunt Mine. The new
discoveries are located south of the Alpha Island Fault in what is
interpreted to be the southern extension of the Western Flanks
shear zone.
The new discoveries were the result of drilling targeting an
interpreted trough position known as the "30C" at the ultramafic /
basalt contact south of the Alpha Island Fault. These types of
shear related trough positions have historically been known to host
high-grade nickel mineralization at Beta Hunt and are frequently in
close proximity to shear hosted gold mineralization in the
underlying basalt. The new high grade gold mineralization
discovery, now named the Larkin Gold Zone ("Larkin"), sits
approximately 5 to 10 metres below the 30C nickel basalt /
ultramafic contact which is further confirmation of the
relationship between gold and nickel occurrences at Beta Hunt.
Karora is also pleased to announce that, as a result of strong
successes year to date in its 2020 exploration program, the
consolidated Western Australia
full year 2020 exploration expenditures will be increased to
A$15 million. The increased budget
will be entirely funded from internal cash flows and represents an
approximate 50% increase from previous 2020 guidance of
A$9.5 to A$10
million (see Karora news release dated January 23, 2020).
Paul Andre Huet, Chairman &
CEO, commented: "With two exploration drills now turning
underground at Beta Hunt, I am extremely pleased to announce that
we are seeing early successes following the delays and precautions
associated with COVID-19. The discovery of the new Larkin High Grade Gold Zone, located below the
new 30C nickel discovery, is a strong validation of our exploration
model at Beta Hunt and we are very excited to continue testing the
interpretation across the zone.
At the new Larkin High Grade Gold
Zone, drilling has returned some outstanding gold
mineralization results both in drill core and channel samples taken
from underground development in the zone. For example, wall sample
BD40ACCLHW_002 returned 5.0 g/t over 14.4 metres, including a 2.6
metre interval grading 22.7 g/t.
This gold mineralization discovery appears to be the fault
offset continuation of the Western Flanks shear zone and is open
both at depth and along strike to the southeast. At this stage the
Larkin gold mineralization is interpreted to occur over a 400 metre
strike length. We plan to follow-up on the drilling in this zone
over the remainder of 2020.
Adding to our nickel drilling success announced earlier this
week, the 30C high grade nickel discovery above the Larkin Zone
continues to highlight the excellent potential to add to the Beta
Hunt nickel resource and for nickel to be an increasingly important
by-product credit at Beta Hunt."
Larkin Gold Zone Discovery
Drilling (1,239 metres in 14 holes) targeting the 30C nickel
trough has intersected high grade gold mineralization below the 30C
nickel basalt/ultramafic contact. The mineralization is similar in
style to the A Zone and Western Flanks deposits north of the Alpha
Island Fault and was intersected from the two drill positions shown
in Figure 1 (1730 X-cut and 40 Access).
The new discovery is interpreted as the faulted southern offset
of the Western Flanks zone which has a Measured and Indicated
Mineral Resource of 710,000 ounces (see Technical Report on the
Western Australian Operations – Eastern Goldfields: Beta Hunt Mine
(Kambalda) and Higginsville Gold Operations (Higginsville), dated
February 6, 2020). This result also
puts into focus the potential for additional offsets associated
with the A Zone and Fletcher Zones south of the Alpha Island Fault.
These positions, south of the Fault, are untested and represent
significant future growth opportunities for Beta Hunt (see Karora
Resources Technical Report, February 6,
2020 available for download under Karora Resources profile
on Sedar.com). Significant drill results include:
40 Access1.
- BE30-002: 11.9 g/t over 3.0
m
- BE30-003: 8.2 g/t over 3.9 m
- BE30-004: 3.3 g/t over 15.8
m
- BE30-007: 3.9 g/t over 11.0
m
- BE30-009: 2.4 g/t over 9.3 m
- BE30-010: 15.3 g/t over 3.5
m
- BE30-011: 7.4 g/t over 8.9 m
1730 X-cut1.
- BE30-022: 3.1 g/t over 10.1 m and
22.9g/t over 1.3 m
- BE30-024: 14.7 g/t over 2.3
m
- BE30-026: 2.5 g/t over 5 m
1.
|
Downhole
thickness. True thickness cannot be estimated with available
information
|
30C Nickel Trough
Drilling targeting the ultramafic/basalt contact in the
interpreted trough position intersected nickel sulphide
mineralization, both massive and the matrix texture typical of
adjacent mined nickel troughs (Figure 2). Drilling was conducted
from the 40 access and 1730 X-cuts with results indicating
potential for a mineralized trough over 400 metres of strike and 25
metres wide (Figures 1 and 4). There is further potential to extend
the trough 300 metres south for a total strike length of 700 metres
(Figure 1). Drill intersection highlights are listed below:
40 Access1.
- BE30-001: 2.1% Ni over 2.4 m
- BE30-002: 3.7% Ni over 0.8 m
- BE30-007: 3.8% Ni over 2.3
m
- BE30-009: 7.7% Ni over 1.3
m
- BE30-010: 8.6% Ni over 1.0
m
1730 X cut1.
- BE30-023: 2.9% Ni over 1.0
m
- BE30-026: 2.4% Ni over 2.2
m
1.
|
Downhole
thickness. True thickness cannot be estimated with 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.
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. Wall samples are collected as rock chips using a
G-pick along a horizontal sample traverse. All rock chip samples
are submitted with at least one CRM (standard) every 20 samples.
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 growing gold production 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
1.4 Mtpa processing plant which is fed at capacity from Karora's
underground Beta Hunt mine and open pit Higginsville mine. 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
historical gold resource and highly prospective land package
totaling approximately 1,800 square kilometers. Karora has a strong
Board and management team focused on delivering shareholder value.
Karora's common shares trade on the TSX under the symbol KRR.
Karora shares also trade on the OTCQX market under the symbol
KRRGD.
Cautionary Statement Concerning Forward-Looking
Statements
This news release contains "forward-looking information"
including without limitation statements relating to the potential
of the Beta Hunt Mine, Higginsville Gold Operation and Spargos
Reward 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): 30C Trough Drilling to 15th
June 2020 Significant results
(>1g/t Au over 1m)
Hole
|
Drill
Collar
Location
|
sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)
|
Estimated True
Width (m)
|
Au
(g/t)1.
|
BE30-001
|
40C
|
|
6
|
11.5
|
5.5
|
-
|
3.22
|
BE30-002
|
40C
|
|
3.43
|
13.47
|
10.04
|
-
|
2.71
|
|
30.12
|
33.1
|
2.98
|
-
|
11.9
|
including
|
30.12
|
31.4
|
1.28
|
-
|
26.26
|
BE30-003
|
40C
|
|
3
|
5.3
|
2.3
|
-
|
4.55
|
|
8.7
|
12.55
|
3.85
|
-
|
8.22
|
|
24.55
|
26.5
|
1.95
|
-
|
2.85
|
BE30-004
|
40C
|
|
9.4
|
25.18
|
15.78
|
-
|
3.25
|
|
41.2
|
41.71
|
0.51
|
-
|
6.22
|
BE30-005
|
40C
|
|
9.6
|
11.4
|
2.75
|
-
|
1.09
|
|
22.2
|
24.2
|
2
|
-
|
5.28
|
|
26.9
|
32.97
|
6.07
|
-
|
2.71
|
BE30-007
|
40C
|
|
9.8
|
20.8
|
11
|
-
|
3.89
|
|
35
|
36.24
|
1.24
|
-
|
4.81
|
BE30-008
|
40C
|
|
12.1
|
14.04
|
2.28
|
-
|
2.24
|
|
26.32
|
28.87
|
2.55
|
-
|
3.65
|
BE30-009
|
40C
|
|
5.33
|
15
|
9.29
|
-
|
2.39
|
|
25.8
|
29.37
|
3.57
|
-
|
3.87
|
BE30-010
|
40C
|
|
5.2
|
9.76
|
4.56
|
-
|
7.71
|
|
14.53
|
18
|
3.47
|
-
|
15.27
|
|
27.11
|
31.14
|
4.03
|
-
|
3.06
|
BE30-011
|
40C
|
|
13.86
|
22.8
|
8.94
|
-
|
7.44
|
BE30-022
|
1730 X-cut
|
|
126
|
136.1
|
10.1
|
-
|
3.07
|
|
142.1
|
149
|
6.9
|
-
|
2.35
|
|
172.3
|
173.6
|
1.3
|
-
|
22.85
|
BE30-023
|
1730 X-cut
|
|
43.4
|
49.2
|
5.8
|
-
|
2.14
|
BE30-024
|
1730 X-cut
|
|
118.94
|
121.25
|
2.31
|
-
|
14.71
|
BE30-026
|
1730 X-cut
|
|
143
|
148
|
5
|
-
|
2.54
|
|
159.95
|
161.5
|
2.55
|
-
|
1.41
|
|
1. Uncut gold assays
|
Note: True
width cannot be estimated with available information
|
Table 1(b): 30C Trough drilling to 15th
June 2020 Significant results (>1%
Ni)
Hole
|
Drill
Collar
Location
|
sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)
|
Est. True
Width (m)
|
Ni
pct1..(%)
|
BE30-001
|
40C
|
|
25.97
|
28.34
|
2.37
|
-
|
2.13
|
|
30.22
|
31.5
|
1.28
|
-
|
2.24
|
BE30-002
|
40C
|
|
30.12
|
30.96
|
0.84
|
-
|
3.72
|
BE30-003
|
40C
|
|
-
|
-
|
-
|
-
|
NSA
|
BE30-004
|
40C
|
|
-
|
-
|
-
|
-
|
NSA
|
BE30-005
|
40C
|
|
-
|
-
|
-
|
-
|
NSA
|
BE30-007
|
40C
|
|
28.12
|
30.44
|
2.32
|
-
|
3.77
|
BE30-009
|
40C
|
|
28.13
|
29.37
|
1.24
|
-
|
7.70
|
BE30-010
|
40C
|
|
27.11
|
28.11
|
1.00
|
-
|
8.55
|
BE30-023
|
1730 X-cut
|
|
128
|
129
|
1.00
|
-
|
2.85
|
BE30-022
|
1730 X-cut
|
|
-
|
-
|
-
|
-
|
NSA
|
BE30-024
|
1730 X-cut
|
|
-
|
-
|
-
|
|
NSA
|
BE30-026
|
1730 X-cut
|
|
165.3
|
167.5
|
2.15
|
-
|
2.44
|
|
1. Uncut Ni assays; NSA = <1%Ni
over 1m;
|
Note: True
width cannot be estimated with available information
|
Table 1(c): Larkin Zone Wall Sampling to
15th June 2020 Significant results (>1g/t Au over
1m)
Wall Sample
ID
|
sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)
|
Estimated
True
Width (m)
|
Au
(g/t)1.
|
BD40ACCLHW_002
|
|
0
|
14.4
|
14.4
|
-
|
4.96
|
including
|
11.8
|
14.4
|
2.6
|
-
|
22.70
|
|
1. Uncut gold
assays
|
Note: True
width cannot be estimated with available information
|
Table 2: 30C drilling to 15th June 2020
HOLE
ID
|
EASTING
|
NORTHING
|
mRL
|
AZI
|
DIP
|
Total
Length
(m)
|
BE30-001
|
375447.5
|
542683.8
|
-370.5
|
200
|
55
|
44.95
|
BE30-002
|
375447
|
542682.9
|
-371.5
|
201
|
36
|
53.3
|
BE30-003
|
375447.2
|
542682.8
|
-372
|
202
|
23
|
56.73
|
BE30-004
|
375443.3
|
542685.2
|
-370.4
|
280
|
64
|
53.8
|
BE30-005
|
375441.2
|
542686
|
-371.2
|
283
|
44
|
58.05
|
BE30-007
|
375445.3
|
542686.6
|
-370.4
|
247
|
60
|
45.1
|
BE30-008
|
375441.4
|
542684.9
|
-371
|
248
|
52
|
39.05
|
BE30-009
|
375446.9
|
542683.6
|
-370.5
|
196
|
44
|
42
|
BE30-010
|
375446.5
|
542683.7
|
-370.5
|
225
|
53
|
41.88
|
BE30-011
|
375448.2
|
542686.1
|
-369.4
|
224
|
64
|
43
|
BE30-022
|
375328.5
|
543176
|
-302.3
|
212
|
2
|
216
|
BE30-023
|
375328.8
|
543175.6
|
-302.2
|
235
|
2
|
161.8
|
BE30-024
|
375328.7
|
543175.6
|
-302.4
|
243
|
11
|
131.5
|
BE30-026
|
375328.8
|
543174.7
|
-302.4
|
202
|
1
|
251.9
|
SOURCE Karora Resources Inc.