Highlights:
- At Beta Hunt, visible gold was observed in the Larkin Zone
drill core from the infill drilling program (hole number
EL-EA2-023E), further demonstrating the potential for a third gold
resource in addition to A Zone and Western Flanks. Initial assay
results1,2 include:
-
- EL-EA2-023E: 19.0 g/t over 9.0 metres, including 542 g/t
over 0.3 metres
- EL-EA2-023E: 6.4 g/t over 3.0 metres, including 16.2 g/t
over 1.0 metres
- EL-EA2-023E: 2.3 g/t over 9.7 metres
- EL-EA2-018E: 4.0 g/t over 3.0 metres
1. Downhole intervals. True widths
are estimated to be 90% of downhole widths.
2.
Tables showing complete results and drill holes can be found at
the end of this news release.
TORONTO, Feb. 1, 2021 /CNW/ - Karora Resources Inc.
(TSX: KRR) ("Karora" or the "Corporation") is pleased to announce
strong drill results from the Larkin Zone at its Beta Hunt Mine.
The results are part of an ongoing infill and step-out drilling
program designed to convert the Larkin Zone discovery, announced in
September 2020 (see Karora news
release dated September 10, 2020),
into Mineral Resources.
Paul Huet, Chairman and CEO of
Karora said, "Today's high grade gold drill results continue to
demonstrate the exciting potential in a new zone outside of the
current production centres of Western Flanks and A Zone. The
results reinforce our strong belief that the Beta Hunt mine has the
potential for significant gold resource growth and expansion beyond
the substantial increase in Reserves and Resources announced in
December 2020. We are excited by the
potential at Larkin and are keen to bring the zone into our Mineral
Resource this year.
The new high grade gold intercepts announced today, including an
intercept of 19.0 g/t over 9.0 metres and visible gold
mineralization observed in drill core EL-EA2-023E, build upon the
Larkin high grade gold discovery previously reported in our news
release of September 10, 2020, which
included 15.3 g/t over 3.5 metres in hole BE30-010 and a wall
sample of 5.0 g/t over 14.4 metres. We look forward to receiving
additional assay results from the Larkin Zone, which is open both
at depth and along strike to the southeast.
The Larkin Zone has an important infrastructure advantage as
development drifts were put in place historically to access
proximal nickel mineralization. Preliminary engineering work is
already underway to prepare this area as the next mining zone at
Beta Hunt."
Larkin Zone Drilling
Resource definition drilling aimed to confirm and delineate the
Larkin Zone for resource conversion commenced late last year as a
follow-up to 2020's discovery (see Karora news release dated
September 10, 2020). The discovery is
interpreted as the faulted southern offset of the Western Flanks
zone (Figure 1). The 30C nickel resource lies directly above the
gold mineralization associated with the Larkin Zone (See Karora
Technical Report, Feb. 1, 2021,
www.sedar.com). To date 3,540 metres of a planned 6,100 metre
program have been completed with the balance of the drilling due to
be completed in the first half of 2021. Over the past several
months, turn-around times on assay results have been adversely
impacted by industry-wide laboratory capacity issues resulting from
increased demand for their services and labour supply hurdles
related to COVID 19 restrictions.
Assay results have been received for two holes with significant
results detailed below:
- EL-EA2-023E: 19.0 g/t over 9.0 metres, including 542 g/t over
0.3 metres2
- EL-EA2-023E: 2.3 g/t over 9.7 metres
- EL-EA2-018E: 4.0 g/t over 3.0 metres
1. Downhole intervals. True widths are estimated to be
90% of downhole widths.
2. Repeat assays over this
interval (EL-EA2-023E, 277.16m –
227.42m) recorded grades up to 6,560
g/t Au highlighting the nuggety nature of the Larkin
mineralization.
Preliminary interpretation of results to date indicate the
Larkin Zone comprises two steep dipping, mineralized zones (Figure
2) of varying widths (3 metres to 10 metres). Observed
mineralization in the Larkin Zone is similar in style to the A Zone
and Western Flanks deposits with the standout intersection from
hole EL-EA2-023E associated with visible gold mineralization along
the quartz vein/altered basalt contact (Figure 3).
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. 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.
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
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 is anticipated to
begin mining in 2021. 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 timing for
the completion of technical studies, liquidity and capital
resources of Karora, commencement of production at the Spargos Gold
Project, 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: Beta Hunt, Larkin Zone drill holes - gold
assay results, January 2021
Hole
ID
|
Sub
interval
|
From (m)
|
To
(m)
|
Downhole
Interval
(m)
|
Estimated
True
Width
(m)
|
Au
(g/t)1.
|
EL-EA2-018E
|
|
143.0
|
144.0
|
1.0
|
0.7
|
1.84
|
|
163.3
|
166.3
|
3.0
|
2.1
|
3.96
|
|
194.0
|
195.0
|
1.0
|
0.7
|
1.02
|
EL-EA2-023E
|
|
140.6
|
142.3
|
1.7
|
1.6
|
2.61
|
|
164.0
|
173.7
|
9.7
|
9.3
|
2.29
|
|
186.0
|
188.2
|
2.2
|
2.1
|
2.22
|
|
221.0
|
230.0
|
9.0
|
8.6
|
18.95
|
including
|
227.16
|
227.42
|
0.26
|
0.25
|
542
|
and
|
229.42
|
229.56
|
0.14
|
0.13
|
95
|
|
248.9
|
251.0
|
2.1
|
2.0
|
4.36
|
|
233.0
|
236.0
|
3.0
|
2.9
|
6.42
|
including
|
234.0
|
235.0
|
1.0
|
1.0
|
16.18
|
|
264.9
|
267.0
|
2.1
|
2.1
|
1.28
|
|
271.6
|
272.6
|
1.0
|
1.0
|
1.7
|
1. Reported gold grades > 0.5 g/t over
1 metre.
Table 2: Beta Hunt, Larkin Zone drill holes - gold
assay results, January 2021
Hole
ID
|
Northing
|
Easting
|
mRL
|
AZI
|
DIP
|
Total Length
(m)
|
EL-EA2-018E
|
375483
|
542854
|
-420.6
|
285.9
|
16.6
|
240.1
|
EL-EA2-025E
|
375483
|
542854
|
-420.6
|
291.1
|
5.4
|
290.7
|
Note: Eastings and Northings in MGA, Zone 51.
SOURCE Karora Resources Inc.