Highlights:
- Development in the A Zone shear has intersected an
estimated1 2,000 ounces of coarse gold,
supporting the existing Beta Hunt Coarse Gold Geological
Model
- The existing Beta Hunt Coarse Gold model has been supported
in a number of development headings in A Zone and Western
Flanks
TORONTO, Nov. 2, 2020 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Corporation") is pleased to announce
that underground development at the Beta Hunt Mine has intersected
an estimated1 2,000 ounces of coarse gold. The coarse
gold occurrence was found in the same geological environment as
previously announced coarse gold occurrences and proximal to the
2018 Father's Day Vein discovery. The new gold occurrence provides
further support of Karora's existing Coarse Gold Geological Model
at Beta Hunt which could potentially apply to other areas in the
mine. The Coarse Gold Model attempts to identify areas with the
necessary geological setting for a higher likelihood of coarse gold
occurrences. However, as with all predictive geological models, the
model does not ensure an occurrence, nor the amount of coarse gold
potentially associated with each occurrence.
Note 1: The accuracy of this estimate at this stage is
considered to be +10%/-25% as it is based on the measurement of the
estimated gold content for each of the samples by specific gravity
determinations. This occurrence is not necessarily representative
of continued mineralization. Further, such estimates cannot be
interpreted with the same confidence as assay results.
Paul Andre Huet, Chairman &
CEO, commented: "We are excited to announce another coarse gold
occurrence at Beta Hunt, which supports our existing coarse gold
model used to identify the geological setting in which potential
coarse gold is expected to occur. As we have previously stated, we
do not include coarse gold in our reserves, nor do we incorporate
it into our mine plan. While these occurrences are certainly
welcome, they are best considered as a potential periodic
significant bonus on top of our ongoing economic mine production at
the base reserve grade.
During this year, we have demonstrated three consistent quarters
of highly profitable mining at Beta Hunt, with no coarse gold
occurrences, which is a testament to the evolution of our
operations and Karora as a business. Our recent track record of
reducing costs and improving efficiencies has led to Beta Hunt
providing a reliable and predictable contribution to our production
profile and has attracted strong institutional quality investor
interest in Karora. We will continue with our strategy to mine Beta
Hunt in a systematic, efficient manner based on our reserve grade
mine plan while ensuring, through our complete extraction of the
shear zone, that we do recover coarse gold occurrences in the
sediment-hosted zone where they are most likely to occur.
Additionally, over the course of this year we have proactively
enhanced security protocols at Beta Hunt associated with the
handling of coarse gold via immediate and secure transport for safe
storage until it is processed and sold.
Over the remainder of this year, we look forward to updating the
market on our ongoing drill programs, our third quarter financial
results, as well as a comprehensive reserve and resource update
across our operations."
Figure 1: Quartz rock containing coarse gold in the A
Zone.
Beta Hunt Coarse Gold Occurrence
As previously outlined, at Beta Hunt coarse gold mineralization
(> 1% Au) is associated with the basalt/ultramafic contact and
with an interflow sediment within the Lunnon Basalt where it
intersects the main shear zones. Based on more recent mining of the
A Zone, underground mapping and drill hole interpretation, Beta
Hunt geologists have confirmed the coarse gold mineralization to be
controlled by the intersection of the main mineralized shear zones
(A Zone and Western Flanks) and the Lunnon interflow sediment which
is a narrow, iron sulphide-rich unit that occurs approximately 150
metres stratigraphically below the ultramafic/basalt contact. The
intersection of the steep dipping shear zones with the shallow,
west- dipping Lunnon sediment is interpreted to produce a shallow,
north plunging zone that may contain "pockets" of coarse gold.
This model was applied to the sedimentary unit at A Zone which
intersected the interpreted north plunging potential "coarse gold"
zone (see Figure 2). Ore drives in the A Zone resource area have
intersected sediment associated coarse gold (an estimated 2,000
ounces – see Note 1 above), providing strong ongoing support and
reinforcement of the previously developed geological model. In
addition to being applied to A zone and Western Flanks, this model
is interpreted to apply to the other parallel mineralized shear
zones at Beta Hunt.
Figure 2: Face of ore drive in sedimentary horizon on A Zone
shear. Coarse gold is found on the margin of the shear-related
quartz vein in contact with the pyrite-rich Lunnon
sediment.
Note: Gold grades (g/t Au) in yellow represent rock-chip
sample assays over marked-up intervals (metres).
Qualified Person
The disclosure of scientific and technical information contained
in this news release has been approved Stephen Devlin, FAusIMM, Group Geologist, Karora
Resources Inc., a Qualified Person for the purposes of NI
43-101.
The recovered coarse gold quantities were determined and
compiled at the Beta Hunt mine site by Beta Hunt Mine staff who are
full time employees of Karora Resources Inc.
Gold content of rock specimens containing coarse gold was
determined using the non-destructive specific gravity method
according to the calculation shown in Figure 3.
Where Au_g is the contained gold weight of the rock
specimen in grams, Gold SG is the specific gravity of
gold and equals 19.3, Dry Weight_g is the dry weight in
air of the rock specimen measured via laboratory scale adjusted for
container mass, Water Mass ml is the mass of water
displaced by the rock specimen measured by placing the rock in
water and weighing the displaced water, Host Rock SG is
the estimated specific gravity of the host rock (gangue material in
the specimen) based upon interpreted relative proportions of quartz
and basalt in the host rock and in this case ranges from 2.7 to
2.8.
The error in this estimation method is primarily related to the
estimation of Host Rock SG. The values determined for
Au_g is considered to be accurate within a range
of +10% to -25% of the determined value.
Wall samples are collected as rock chips using a G-pick along a
horizontal sample traverse. Samples are shipped to SGS Mineral
Services of Kalgoorlie for preparation and assaying by 50 gram fire
assay analytical method. All rock chip samples are submitted with
at least one CRM (standard) 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. 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
KRRGF.
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; failure to discover
additional significant amounts of coarse gold; 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.
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SOURCE Karora Resources Inc.