Highlights:
- Initial drill results1 within 100 metres of the
surface have intersected new high grade gold intercepts at the
Spargos Project. These include:
-
- SPRC0026: 29.8 g/t over 19.0 metres, including 99.5 g/t over
5.0 metres
- SPRC0012: 27.3 g/t over 15.0 metres, including 168.0 g/t
over 1.3 metres
- SPRC0019: 8.0 g/t over 19.0 metres, including 20.6 g/t over
2.0 metres
- SPRC0028: 29.8 g/t over 3.0 metres
- SPRC0032: 8.7g/t over 16.0
metres
1. Downhole intervals.
Estimated true widths are approximately 70% of the downhole
interval.
- Two RC drill rigs now actively drilling at
Spargos
- A new Spargos Mineral Resource is expected to be included in
the upcoming fourth quarter mineral resource and reserve
update
TORONTO, Nov. 18, 2020 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Corporation") is pleased to announce a
very strong start to its 12,000 metre drill program at the
Spargos Project, with several high grade gold intercepts over broad
widths intercepted in mineralization located within and on the
margins of the interpreted high grade main zone. The new drill
results reported are all within approximately 100 metres of surface
and could potentially be included in an expanded open pit
scenario.
Paul Andre Huet, Chairman &
CEO, commented: "Our exploration drilling program at Spargos is off
to a tremendous start. I am thrilled to share our new drill results
with the market.
Our first pass exploration drilling aimed at following up on the
broad, high grade historical drill intercept
19SPRRC0042 (37.1 g/t over 18.0 metres) has
returned outstanding results that have exceeded our internal
expectations. It is not often that these kinds of grades are
drilled over such widths this close to surface. I am very much
looking forward to our exploration team continuing to test the
area.
The results announced today are within and along strike of the
main high grade zone already included in the open pit planned by
the previous owners of Spargos. The new mineralization we have
encountered has identified a potential new plunging shoot which
remains open both along strike and down-plunge. We currently have
two drills turning on the project with one focused on exploration
and one focused on resource definition drilling ahead of our
upcoming resource and reserve estimate in December, which will form
the basis of an initial mine plan. I look forward to providing
additional drill results from Spargos as they become available from
our ongoing programs"
_______________________
|
2
|
Historical
drill information for hole 19SPRRC004, as provided in Corona
Resources Limited news release (www.coronaresources.com.au),
December 6, 2019.
|
Strong Initial Drill Results
The first four lines of the Spargos drill program have now been
completed and results received. Drilling to date totals 21 holes
for 1,608 metres (Figure 2 highlights the location of recently
completed Karora drill holes and historic drill holes). Holes
targeted extensions to the southern near-surface margin of the
historical mineral resource and successfully confirmed the very
high grades intersected in drill hole 19SPRRC004 - 37.1 g/t over 18
metres (62 metres to 80 metres), including 93.1 g/t over 2 metres
from 78 metres downhole.
Highlights from the drilling3,4 are listed in order
below:
- SPRC0012: 27.3 g/t over 15.0 metres, including 168.0 g/t over
1.3 metres
- SPRC0013: 5.7 g/t over 8.0 metres
- SPRC0019: 8.0 g/t over 19.0 metres, including 20.6 g/t over 2.0
metres
- SPRC0026: 29.8 g/t over 19.0 m,
including 99.5 g/t over 5.0 metres
- SPRC0028: 29.8 g/t over 3.0 metres
- SPRC0030: 6.9 g/t over 8.0 metres
- SPRC0032: 8.7g/t over 16.0 metres
3. Downhole intervals. Estimated true widths are
approximately 70% of the downhole interval.
4.
Tables showing complete drill results and drill hole locations
can be found at the end of this news release.
Drilling is ongoing, with the balance of the 12,000 metre
Spargos drill program to be completed before the end of the year.
Figure 1 illustrates the collar locations of the recent drilling
and highlights the potential new north plunging shoot. Further
drilling and analysis will be undertaken to validate this theory
which could lead to additional parallel shoots.
Spargos Project – Background
The Spargos Reward project tenements cover 33 square kilometres,
located in the Eastern Goldfields of Western Australia, just 65km north of Karora's
Higginsville mill by road. The project contains an existing
historical (JORC (2012) Mineral Resource Estimate5. of
112,000 oz (785,800 tonnes @ 4.4 g/t) indicated resource and 19,000
oz (151,000 tonnes @ 4.0 g/t) inferred resource, There are also a
number of historic workings within the project, most notable of
which is the historic Spargos Reward Gold Mine which produced
105,397 tonnes at an average grade of 8.56 g/t Au in the 1930s and
1940s, with limited gold extraction since that time. Karora
acquired the Spargos Reward project in August 2020 (see Karora news release dated
August 7, 2020)
The Spargos gold mineralized system is positioned on the contact
between meta-greywackes to the east and strongly altered sodic
felsic volcaniclastics to the west along a major north trending
shear zone which dips steeply to the east. Gold mineralization is
hosted in a number of positions with the bulk of the identified
mineralization occurring as disseminations and stringer zones of
quartz-biotite-amphibole-pyrite-arsenopyrite alteration. The
deposit is characterised by the absence of quartz veining.
The gold mineralized zones can be broken down into two key zones
- Main Lode and a second West Zone. A review of the historical mine
mapping and data indicate high grade mineralization is associated
with shallow, north plunging shoots controlled by drag folds
recognized along the meta-greywackes and western
meta-volcaniclastics contact. The interpreted down-plunge position
of high grade mineralization is virtually untested by drilling and
represents significant exploration potential to grow the existing
historical mineral resource.
_____________________
|
5
|
See
www.coronaresources.com.au, Feb 26, 2020. A qualified person has
not done sufficient work on behalf of Karora to classify the
historical estimate as current mineral resources or mineral
reserves, and Karora is not treating the historical estimates as
current mineral resources or mineral reserves.
|
Spargos Reward - Resource Definition
As previously outlined in Karora's news release dated
November 9, 2020, a 12,000 metre
combined RC and surface diamond drilling program is underway to
increase confidence in the existing historical mineral resource and
extend known mineralization along strike with the aim of delivering
a NI 43-101 compliant mineral resource suitable for the production
of a mineral reserve. This reserve will form the basis of an
initial mine plan with initial ore expected to be mined at Spargos
in the second quarter of 2021.
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 RC drill sampling is conducted by Karora personnel. Samples
for gold analysis are shipped to Bureau Veritas Laboratories of
Kalgoorlie and Perth for
preparation and assaying by 40 gram fire assay analytical method.
All drilling samples submitted for assay include Certified
Reference Material ("CRM") and coarse blank every 25th
down hole metre. Duplicate samples are taken every 50th
metre. The lab is also required to undertake a minimum of 1 in 45
wet screens on pulverised samples to ensure a minimum 90% passing
at -75µm.
Where problems have been identified in QA/QC checks, Karora
personnel and the Bureau Veritas 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 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 Spargos Gold Project, the Beta Hunt Mine and Higginsville
Gold Operation.
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: Spargos Reward Drilling, October 2020 - Significant Results
Hole
ID
|
Sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval (m)1
|
Au
(g/t)2.
|
SPRC0011
|
|
21.0
|
27.0
|
6.0
|
2.49
|
SPRC0012
|
|
0.0
|
2.0
|
2.0
|
1.18
|
|
24.0
|
25.0
|
1.0
|
2.36
|
|
29.0
|
44.0
|
15.0
|
27.30
|
including
|
33.0
|
35.0
|
2.0
|
168.00
|
|
47.0
|
49.0
|
2.0
|
3.7
|
SPRC0013
|
|
0.0
|
1.0
|
1.0
|
1.03
|
|
27.0
|
30.0
|
3.0
|
3.86
|
|
40.0
|
48.0
|
8.0
|
5.71
|
SPRC0014
|
|
-
|
-
|
-
|
NSA
|
SPRC0015
|
|
89.0
|
90.0
|
1.0
|
1.19
|
SPRC0017
|
|
23.0
|
25.0
|
2.0
|
2.44
|
SPRC0018
|
|
28.0
|
33.0
|
5.0
|
1.91
|
|
40.0
|
46.0
|
6.0
|
4.24
|
SPRC0019
|
|
19.0
|
20.0
|
1.0
|
1.64
|
|
40.0
|
41.0
|
1.0
|
1.32
|
|
45.0
|
64.0
|
19.0
|
8.02
|
including
|
56.0
|
58.0
|
2.0
|
20.55
|
SPRC0020
|
|
77.0
|
81.0
|
4.0
|
1.27
|
|
90.0
|
94.0
|
4.0
|
0.86
|
SPRC0021
|
|
0.0
|
3.0
|
3.0
|
2.72
|
SPRC0023
|
|
0.0
|
1.0
|
1.0
|
1.38
|
|
9.0
|
17.0
|
8.0
|
1.84
|
|
21.0
|
22.0
|
1.0
|
6.49
|
|
29.0
|
30.0
|
1.0
|
1.81
|
SPRC0024
|
|
1.0
|
2.0
|
1.0
|
4.16
|
|
30.0
|
35.0
|
5.0
|
2.47
|
|
39.0
|
45.0
|
6.0
|
2.64
|
SPRC0025
|
|
46.0
|
47.0
|
1.0
|
2.16
|
|
55.0
|
56.0
|
1.0
|
2.47
|
|
63.0
|
64.0
|
1.0
|
1.04
|
SPRC0026
|
|
0.0
|
1.0
|
1.0
|
1.37
|
|
23.0
|
24.0
|
1.0
|
1.94
|
|
36.0
|
37.0
|
1.0
|
1.50
|
|
59.0
|
78.0
|
19.0
|
29.79
|
including
|
68.0
|
73.0
|
5.0
|
99.50
|
|
81.0
|
82.0
|
1.0
|
1.28
|
SPRC0027
|
|
0.0
|
1.0
|
1.0
|
1.95
|
|
78.0
|
80.0
|
2.0
|
2.12
|
|
88.0
|
89.0
|
1.0
|
1.03
|
SPRC0028
|
|
43.0
|
44.0
|
1.0
|
1.33
|
|
87.0
|
90.0
|
3.0
|
29.77
|
|
103.0
|
104.0
|
1.0
|
1.58
|
SPRC0029
|
|
17.0
|
18.0
|
1.0
|
1.48
|
|
26.0
|
27.0
|
1.0
|
1.31
|
SPRC0030
|
|
19.0
|
27.0
|
8.0
|
6.85
|
|
34.0
|
40.0
|
6.0
|
2.37
|
SPRC0031
|
|
29.0
|
32.0
|
3.0
|
1.11
|
|
37.0
|
38.0
|
1.0
|
1.2
|
|
57.0
|
58.0
|
1.0
|
1.4
|
|
66.0
|
70.0
|
4.0
|
2.12
|
SPRC0032
|
|
77.0
|
93.0
|
16.0
|
8.72
|
including
|
82
|
83
|
1
|
62.00
|
SPRC0033
|
|
104.0
|
108.0
|
4.0
|
4.80
|
|
111.0
|
112.0
|
1.0
|
1.03
|
|
120.0
|
121.0
|
1.0
|
8.33
|
|
|
1.
|
Downhole intervals.
Estimated true widths are approximately 70% of the downhole
interval.
|
2.
|
(>0.5g/t Au over
1.0 metres)
|
Table 2: Spargos Reward Drilling, October 2020
Hole
ID
|
Northing
|
Easting
|
mRL
|
AZI
|
DIP
|
Total
Length (m)
|
SPRC0011
|
6543040
|
354150
|
420
|
270
|
-56
|
32
|
SPRC0012
|
6543040
|
354160
|
420
|
270
|
-56
|
50
|
SPRC0013
|
6543039
|
354170
|
420
|
268
|
-55
|
60
|
SPRC0014
|
6543040
|
354188
|
420
|
270
|
-56
|
90
|
SPRC0015
|
6543039
|
354206
|
420
|
269
|
-56
|
120
|
SPRC0017
|
6543060
|
354160
|
421
|
270
|
-56
|
32
|
SPRC0018
|
6543060
|
354169
|
420
|
268
|
-56
|
50
|
SPRC0019
|
6543060
|
354180
|
420
|
270
|
-55
|
64
|
SPRC0020
|
6543060
|
354205
|
421
|
266
|
-56
|
105
|
SPRC0021
|
6543060
|
354217
|
421
|
270
|
-56
|
123
|
SPRC0023
|
6543080
|
354162
|
421
|
270
|
-56
|
30
|
SPRC0024
|
6543080
|
354177
|
421
|
269
|
-55
|
60
|
SPRC0025
|
6543080
|
354188
|
421
|
269
|
-56
|
74
|
SPRC0026
|
6543080
|
354198
|
421
|
269
|
-55
|
92
|
SPRC0027
|
6543080
|
354209
|
421
|
268
|
-56
|
108
|
SPRC0028
|
6543080
|
354219
|
421
|
269
|
-56
|
120
|
SPRC0029
|
6543100
|
354168
|
422
|
271
|
-56
|
30
|
SPRC0030
|
6543100
|
354177
|
422
|
267
|
-55
|
48
|
SPRC0031
|
6543100
|
354200
|
422
|
266
|
-55
|
78
|
SPRC0032
|
6543100
|
354213
|
422
|
267
|
-55
|
96
|
SPRC0033
|
6543100
|
354238
|
421
|
269
|
-54
|
146
|
SOURCE Karora Resources Inc.