TORONTO, Feb. 1, 2021 /CNW/ - Karora Resources Inc. (TSX:
KRR) ("Karora" or the "Corporation") today announced that the
Corporation has filed on SEDAR a technical report prepared in
accordance with National Instrument 43-101 - Standards of
Disclosure for Mineral Projects ("NI 43-101") supporting the
mineral resource and reserve statement for Beta Hunt and
Higginsville operations in Western
Australia previously reported in Karora's news release dated
December 16, 2020.
The full technical report, titled "Technical Report
Higginsville-Beta Hunt Operation, Eastern Goldfields, Western Australia", can be found under the
Corporation's issuer profile at www.sedar.com.
As previously reported, the new consolidated gold Proven and
Probable Mineral Reserves increased 334% to 1.33 million ounces for
Karora's Beta Hunt and Higginsville operations in Western Australia. The updated Mineral
Resource and Reserve estimate is effective as of September 30, 2020. The new consolidated Measured
and Indicated ("M&I") gold Mineral Resource of 2.52 million
ounces, is an increase of 167% compared to the prior estimate. This
Mineral Resource update does not include the high grade Spargos
Reward Project, which is expected to be completed in the first half
of 2021.
The Mineral Reserve and Mineral Resource estimates as at
September 30, 2020 are presented in
the tables below.
Consolidated Mineral Resource and Reserve Summary for
Higginsville and Beta Hunt
Karora Consolidated Gold Mineral Reserves as at 30 September, 2020
Sept-2020
Mineral
Reserve
|
Proven
|
Probable
|
Proven &
Probable
|
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Beta Hunt
|
329
|
2.4
|
25
|
5,451
|
2.6
|
456
|
5,780
|
2.6
|
482
|
Higginsville
|
8,503
|
1.3
|
362
|
9,249
|
1.6
|
483
|
17,752
|
1.5
|
845
|
Total
|
8,832
|
1.4
|
387
|
14,700
|
2.0
|
940
|
23,531
|
1.8
|
1,327
|
See below Detailed Footnotes relating to Mineral Reserve
Estimates as at September 30,
2020.
Karora Consolidated Gold Mineral Resources as at 30 September, 2020
Sept-2020
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
|
630
|
2.4
|
49
|
11,369
|
2.8
|
1,006
|
11,999
|
2.7
|
1,055
|
6,146
|
2.7
|
537
|
Higginsville
|
13,362
|
1.4
|
604
|
16,633
|
1.6
|
862
|
29,994
|
1.5
|
1,466
|
4,581
|
2.1
|
310
|
Total
|
13,992
|
1.5
|
653
|
28,001
|
2.1
|
1,868
|
41,994
|
1.9
|
2,521
|
10,727
|
2.5
|
847
|
See below Detailed Footnotes relating to Mineral Resource
Estimates as at September 30,
2020.
Karora Consolidated Nickel Mineral Resources as at
30 September, 2020
Sept-2020
Mineral Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Beta
Hunt
|
-
|
-
|
-
|
561
|
2.9%
|
16,100
|
561
|
2.9%
|
16,100
|
314
|
2.8%
|
8,680
|
Nits refers to contained nickel tonnes
See below Detailed Footnotes relating to Mineral Resource Estimates
as at September 30, 2020.
Higginsville
Higginsville Gold Mineral Reserves as at September 30, 2020
Sept-2020
Mineral
Reserve
|
Proven
|
Probable
|
Proven &
Probable
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
HGO
Central
|
340
|
2.2
|
24
|
3,016
|
2.0
|
194
|
3,357
|
2.0
|
218
|
HGO
Greater
|
7,988
|
1.3
|
333
|
5,454
|
1.5
|
268
|
13,442
|
1.4
|
602
|
Stockpiles
|
175
|
0.8
|
5
|
778
|
0.8
|
21
|
953
|
0.8
|
25
|
Total
|
8,503
|
1.3
|
362
|
9,249
|
1.6
|
483
|
17,752
|
1.5
|
845
|
See below Detailed Footnotes relating to Mineral Reserve
Estimates as at September 30,
2020.
Higginsville Gold Mineral Resources as at September 30, 2020
Sept-2020
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
|
953
|
3.0
|
91
|
3,266
|
2.8
|
291
|
4,219
|
2.8
|
382
|
1,455
|
3.1
|
145
|
HGO
Greater
|
12,234
|
1.3
|
508
|
12,094
|
1.4
|
540
|
24,328
|
1.3
|
1,048
|
3,126
|
1.6
|
165
|
Stockpiles
|
175
|
0.8
|
5
|
1,273
|
0.7
|
30
|
1,448
|
0.7
|
35
|
-
|
-
|
-
|
Total
|
13,362
|
1.4
|
604
|
16,633
|
1.6
|
862
|
29,994
|
1.5
|
1,466
|
4,581
|
2.1
|
310
|
See below Detailed Footnotes relating to Mineral Resource
Estimates as at September 30,
2020.
Beta Hunt
Gold
Beta Hunt Gold Mineral Reserves as at September 30, 2020
Sept-2020
Mineral
Reserve
|
Proven
|
Probable
|
Proven &
Probable
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Western
Flanks
|
245
|
2.4
|
19
|
4,411
|
2.7
|
381
|
4,657
|
2.7
|
400
|
A Zone
|
84
|
2.5
|
7
|
1,039
|
2.3
|
75
|
1,123
|
2.3
|
82
|
Total
|
329
|
2.4
|
25
|
5,451
|
2.6
|
456
|
5,780
|
2.6
|
482
|
See below Detailed Footnotes relating to Mineral Reserve
Estimates as at September 30,
2020.
Beta Hunt Gold Mineral Resources as at September 30, 2020
Sept-2020
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
|
451
|
2.4
|
35
|
8,816
|
2.8
|
800
|
9,267
|
2.8
|
835
|
4,133
|
2.7
|
360
|
|
A Zone
|
180
|
2.4
|
14
|
2,553
|
2.5
|
206
|
2,733
|
2.5
|
220
|
2,013
|
2.7
|
177
|
|
Total
|
630
|
2.4
|
49
|
11,369
|
2.8
|
1,006
|
11,999
|
2.7
|
1,055
|
6,146
|
2.7
|
537
|
|
See below Detailed Footnotes relating to Mineral Resource
Estimates as at September 30,
2020.
Nickel
Beta Hunt Nickel Mineral Resources as at September 30, 2020
Sept-2020
Mineral
Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Kt
|
%
Ni
|
Nits
|
Beta
|
-
|
-
|
-
|
286
|
2.6%
|
7,480
|
286
|
2.6%
|
7,480
|
216
|
2.7%
|
5,830
|
East Alpha
|
-
|
-
|
-
|
276
|
3.1%
|
8,620
|
276
|
3.1%
|
8,620
|
98
|
2.9%
|
2,850
|
Total
|
-
|
-
|
-
|
561
|
2.9%
|
16,100
|
561
|
2.9%
|
16,100
|
314
|
2.8%
|
8,680
|
See below Detailed Footnotes relating to Mineral Resource
Estimates as at September 30,
2020.
Compliance Statement (JORC 2012 and NI 43-101)
Shane McLeay is a mining engineer
and a Fellow of the AusIMM. Mr McLeay is an employee of Entech Pty
Ltd of Perth, Western Australia, who were employed by
Karora to undertake the Gold Mineral Reserve estimate for Beta
Hunt. Mr McLeay 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 McLeay has reviewed and approved the disclosure of the
scientific and technical information for the Beta Hunt Gold Mineral
Reserves included in this news release.
Anton von Wielligh is a mining engineer and a Fellow of the
AusIMM. Mr von Wielligh is an
employee of ABGM Pty Ltd of Perth, Western Australia, who
were employed by Karora to undertake the Gold Mineral Reserve
estimate for Higginsville (Central & Greater, excluding Mt
Henry). Mr von Wielligh 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 von Wielligh has reviewed
and approved the disclosure of the scientific and technical
information for the Higginsville (excluding Mt Henry) Gold Mineral
Reserves included in this news release.
Ross Cheyne is a mining engineer
and a Fellow of the AusIMM. Mr Cheyne is an employee and Director
of Orelogy Mine Consulting of Perth, Western Australia,
who were employed by Karora to undertake the Gold Mineral Reserve
estimate for the Mt Henry Project. Mr Cheyne 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 Cheyne has reviewed and approved
the disclosure of the scientific and technical information for the
Mt Henry Gold Mineral Reserves included in this news release. The
Mt Henry Gold Mineral Reserve is part of the Higginsville Greater
Mineral Reserve estimate.
Mr. Stephen Devlin is Group Geologist – Exploration &
Growth 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 scientific and technical information
for the Beta Hunt and Higginsville Gold Mineral Resource and the
Beta Hunt Nickel Mineral Resource included in this news
release.
Mr. Ian Glacken is a geologist and geostatistician and a
Fellow of the AusIMM. Mr Glacken is an employee of Optiro Pty Ltd,
of Perth, Western Australia, who were employed by Karora
to undertake the Gold Mineral Resource estimate for the Mt Henry
Project. Mr Glacken 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 Glacken has reviewed and approved the disclosure of the
scientific and technical information for the Mt Henry Gold Mineral
Resource in this news release. The Mt Henry Gold Mineral Resource
is part of the Higginsville Greater Mineral Resource estimate.
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 September 30,
2020
|
(1)
|
Mineral Resources
that are not Mineral Reserves 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.
|
(2)
|
The Measured and
Indicated Mineral Resources are inclusive of those Mineral
Resources modified to produce Mineral Reserves.
|
(3)
|
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.
|
(4)
|
The Gold Mineral
Resources are estimated using a long term gold price of US$1,600/oz
with a US:AUD exchange rate of 0.70.
|
(5)
|
Gold Mineral
Resources were estimated using variable cut-off grades taking into
account variable operational costs: underground - 1.3 g/t; open
pits, 0.4 g/t to 0.5g/t.
|
(6)
|
To best represent
"reasonable prospects of eventual economic extraction" the mineral
resource for open pits has been reported within an 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.
|
(7)
|
The Nickel Mineral
Resource is reported above a 1% Ni cut-off grade.
|
(8)
|
Mineral Resource
tonnage and contained metal have been rounded to reflect the
accuracy of the estimate, and numbers may not add due to
rounding.
|
Detailed Footnotes
relating to Mineral Reserve Estimates as at September 30,
2020
|
(1)
|
The Gold Mineral
Reserve are estimated using a long term gold price of US$1,400/oz
with a US:AUD exchange rate of 0.70.
|
(2)
|
Cut-off grades for
open-pit mineral reserves vary from 0.50g/t to 0.85g/t. The cut-off
grade takes into account dilution, mine recovery and operating
mining, processing/haulage, sustaining capital and G&A costs.
Dilution and recovery factors varied by deposit.
|
(3)
|
At Beta Hunt,
underground mineral reserves are reported at a 1.6g/t incremental
cut-off grade. At Higginsville, underground mineral reserves
cut-off grades vary between 1.6g/t (modified and diluted grade) to
2g/t (modified/diluted grade). The cut-off grade takes into account
Operating Mining, Processing/Haulage and G&A costs, excluding
capital.
|
(4)
|
The Mineral Reserve
is depleted for all mining to September 30, 2020.
|
(5)
|
Mineral Reserve
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 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
gold Mineral 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, production guidance and the potential of the
Beta Hunt Mine, Higginsville Gold Operation, the Aquarius Project
and the Spargos Gold Project and the timing for production at 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.
SOURCE Karora Resources Inc.