Highlights:
- At Beta Hunt, drilling aimed to test for the offset
extension of the historic Beta nickel belt south of the Gamma
Island Fault has confirmed the presence of massive and matrix
nickel sulphide mineralization along the prospective
ultramafic/basalt contact.
- Significant nickel intersections1
include:
-
- G50-22-005E: 11.6% Ni over 4.6 metres, including 18.4% Ni
over 2.2 metres
- G50-22-002E: 1.2% Ni over 0.3 metres
- G50-22-003E: 2.4% Ni over 1.8 metres
- The new nickel zone - named "50C" has the potential to
represent a repeat of the historic Beta Zone which to date has
produced in excess of 32,000 tonnes of nickel metal (Nits). The 50C
Nickel Trough is located 140 metres from existing development and
remains open to the south.
- Drilling also intersected gold mineralization above and
below the 50C trough and suggests the Beta Hunt gold mineralized
system extends for over 3.5 kilometres of strike from the northern
end of the A Zone.
- Significant gold intersections1.
include:
-
- G50-22-002E: 2.7g/t Au over 12.0 meters, including 10.1g/t
Au over 1.4 metres
- G50-22-005E: 5.2 g/t Au over 3.2 metres
- G50-22-004E: 2.8g/t Au over 11.5 metres, including 10.5 g/t
Au over 0.5 metres
1. Downhole
intervals. True widths cannot be determined with currently
available information.
|
TORONTO, April 6, 2021 /CNW/ - Karora Resources Inc. (TSX:
KRR) ("Karora" or the "Corporation") is pleased to announce a new
high grade nickel discovery at the Beta Hunt Mine – the 50C Nickel
Trough. The 50C discovery, located south of the Gamma Island Fault,
is the second new nickel discovery at Beta Hunt in the last six
months and is further evidence of the upside potential for nickel
as a by-product credit to Karora's growing gold production profile.
In addition, new gold drilling intersections have extended the
known gold mineralized system at Beta Hunt to over 3.5 kilometres
along strike.
Paul Huet, Chairman and CEO of
Karora said, "I am very excited with the latest set of drill
results from Beta Hunt, which continue to return outstanding
intersections and now a second new nickel discovery, all within
close proximity to existing mine development. The discovery of a
new nickel zone south of the Gamma Island Fault is a major
breakthrough in understanding the potential extent of nickel
mineralization at Beta Hunt and represents a significant, emerging
nickel opportunity for Karora. While we are focused on gold
production as our core strategy, the potential by-product credits
from these nickel grades, as high as 18%, are undoubtedly
substantial.
As with the 30C nickel discovery announced in September 2020, the 50C discovery is within close
proximity to existing mine development, reflecting the enormous
advantage we have at Beta Hunt with over 400 kilometres of existing
underground development already in place due to historic nickel
mining operations in the highly competent basalt unit since the
1970s. This existing development not only provides for potential
near term mining access once ventilation upgrades are completed,
but also tremendous underground drilling locations from which to
target further resource additions. The extensive infrastructure in
place reduces our waste capital development requirements and
increases the profitability of the operation. Further drilling
targeting nickel growth at Beta Hunt is planned for the second half
of the year and we look forward to additional updates as assays
come in from the heavily stretched assay labs in Western Australia.
While our drilling in the 50C discovery area was aimed at nickel
targets, our efforts also returned some meaningful gold assays
including 5.2 g/t over 3.2 metres in hole G50-22-005E. These gold
results demonstrate yet another potential area to add to the
growing gold resource at Beta Hunt in the near term and have
extended the strike extent of Beta Hunt gold mineralization to 3.5
kilometres from 3.1 kilometres previously."
New Nickel Discovery – Gamma Zone 50C
Nickel
Late last year Karora completed a five hole, 1,381 metre
underground diamond drill program aimed to test for an offset
continuation of the western Beta nickel belt at the very southern
end of the Beta Hunt mine. The offsetting structure is known as the
Gamma Island Fault and is interpreted to up-throw the southern
block up to 200 metres. The drill program as designed was the
result of a recent assessment and geological review of the area by
Karora's exploration team and was co-funded by the Western
Australian Government as part of its co-funded Exploration
Incentive Scheme (EIS).
The targeted basalt/ultramafic contact was intersected in four
of the five holes with nickel mineralization intersected in three
holes - G50-22-005E, G50-22-003E and G50-22-002 in the targeted
nickel contact position. Two holes, G50-22-005E and G50-22-003E
encountered strong nickel mineralization logged as massive and
disseminated nickel sulphide, with hole G50-22-005E intersecting
2.2 metres (downhole) of massive nickel sulphide. Assay
results1.support the visual observation of high tenor
mineralization in this hole:
- G50-22-005E: 11.6% nickel over 4.6 meters, including 18.4% Ni
over 2.2 meters
- G50-22-002E: 1.2% Ni over 0.3 meters
- G50-22-003E: 2.4% Ni over 1.8 meters
1. Downhole
intervals. True widths cannot be determined with currently
available information.
|
These results are 140 metres from existing mine development and
reinforce the potential for a repeat of the Beta style
mineralization south of the Gamma Island Fault, potentially
representing a significant growth opportunity for by-product nickel
production at Beta Hunt. Current Beta Hunt Measured and Indicated
Resources total 561 kt @ 2.9% Ni for 16,100 contained nickel tonnes
(see Karora's Technical Report dated February 1,
2021 available under Karora's profile on Sedar.com).
Beta Hunt Nickel Mineral Resources
Sept-2020
Mineral
Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
|
k
t
|
%
Ni
|
Nits
|
k
t
|
%
Ni
|
Nits
|
k
t
|
%
Ni
|
Nits
|
k
t
|
%
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
|
(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 Nickel
Mineral Resource is reported above a 1% Ni cut-off
grade.
|
(5) Mineral Resource tonnage and
contained metal have been rounded to reflect the accuracy of the
estimate, and numbers may not add due to rounding.
|
(6) Nickel Mineral
Resources are effective as of September 30, 2020.
|
A downhole electromagnetic (EM) survey using the recently
completed holes is planned for the third quarter to assist in the
targeting of nickel troughs in this area. Results will be
interpreted and used for follow-up drilling planned later this
year.
Gold
The five drill holes designed to test for nickel mineralization
also returned encouraging gold intersections south of the Gamma
Island Fault, occurring both in the underlying footwall basalt
(same environment that hosts both the A Zone and Western Flanks
Mineral Resources), and the overlying ultramafic. The association
of gold mineralization with the ultramafic is not typical of the
Beta Hunt gold mineralized system and requires further study to
understand the significance of this observation.
The confirmation of gold mineralization south of the Gamma
Island Fault extends the Beta Hunt gold system over a 3.5 kilometre
strike length from the northern end of A zone and indicates
potential for the continued growth of the existing gold Mineral
Resource. Significant gold intersections1.include:
- G50-22-002E: 2.7g/t over 12.0 meters, including 10.1g/t over
1.4 meters
- G50-22-005E: 5.2 g/t over 3.2 meters
- G50-22-004E: 2.8g/t over 11.5 meters, including 10.5 g/t over
0.5 meters
- G50-22-003E: 4.2g/t over 2.0 meters
1. Downhole
intervals. True widths cannot be determined with currently
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.
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. 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
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 new high
grade nickel discovery at the Beta Hunt Mine – the 50C Nickel
Trough, the extension of the Beta Hunt gold mineralized system and
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(a): Beta Hunt - Gamma Zone-March 2020 - Significant Intersections –
Nickel1
Hole ID
|
Sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)
|
% Ni
2.
|
G50-22-003E
|
|
161.95
|
163.77
|
1.82
|
2.42
|
G50-22-004E
|
|
193.60
|
193.87
|
0.27
|
1.21
|
G50-22-005E
|
|
135.10
|
139.65
|
4.55
|
11.59
|
including
|
135.92
|
138.15
|
2.23
|
18.36
|
1.
|
Downhole widths -
estimated true widths cannot be determined with available
information
|
2.
|
Reported Ni Grades
> 1% Ni
|
Table 1(b): Beta Hunt - Gamma Zone March 2020 - Significant Intersections -
Gold1
Hole
ID
|
Sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)
|
Au
(g/t)2.
|
G50-22-001E
|
|
72.7
|
73.7
|
1.0
|
2.36
|
G50-22-002E
|
|
184.6
|
186.3
|
1.7
|
1.26
|
|
191.9
|
193.0
|
1.1
|
1.69
|
|
250.0
|
251.0
|
1.0
|
4.04
|
|
312.5
|
324.0
|
12.0
|
2.7
|
including
|
321.9
|
323.3
|
1.4
|
10.11
|
|
328.2
|
333.0
|
1.8
|
1.07
|
|
334.0
|
335.0
|
1.0
|
1.34
|
G50-22-003E
|
|
4.00
|
5.00
|
1.00
|
1.5
|
|
105.97
|
107.10
|
2.23
|
1.04
|
|
141.0
|
143.0
|
2.0
|
4.16
|
|
145.2
|
147.0
|
1.8
|
1.09
|
|
218.6
|
220.1
|
1.5
|
1.05
|
|
226.6
|
229.0
|
2.5
|
2.41
|
|
232.0
|
233.9
|
1.9
|
1.11
|
|
240.7
|
242.2
|
1.5
|
1.52
|
|
261.7
|
263.7
|
2.0
|
1.86
|
G50-22-004E
|
|
250.0
|
261.5
|
11.5
|
2.79
|
including
|
258.0
|
258.5
|
0.5
|
10.46
|
|
266.0
|
267.0
|
1.0
|
1.16
|
|
287.0
|
291.8
|
4.8
|
1.97
|
G50-22-005E
|
|
3.0
|
7.0
|
4.0
|
2
|
|
40.0
|
42.0
|
2.0
|
2.14
|
|
74.9
|
78.0
|
2.0
|
2.35
|
|
193.8
|
197.0
|
3.2
|
5.18
|
|
216.0
|
218.9
|
2.9
|
2.58
|
1.
|
Downhole widths -
estimated true widths cannot be determined with available
information.
|
2.
|
Reported gold grades
> 0.5g/t Au over 1metre.
|
Table 2: Beta Hunt - Gamma Zone March
2020 - Drill holes completed in December 2020
Hole
ID
|
Northing
|
Easting
|
MGA
N
|
MGA
E
|
mRL
|
AZI
|
DIP
|
Total
Length
(m)
|
G50-22-001E
|
541760.0
|
376209.9
|
6541821.9
|
376227.3
|
-338.5
|
210.6
|
-14.9
|
308.9
|
G50-22-002E
|
541760.6
|
376209.8
|
6541822.4
|
376227.2
|
-338.9
|
210.1
|
6.3
|
342
|
G50-22-003E
|
541760.2
|
376209.9
|
6541822.0
|
376227.3
|
-336.6
|
215.1
|
19.6
|
263.7
|
G50-22-004E
|
541760.3
|
376209.9
|
6541822.1
|
376227.3
|
-336.9
|
211
|
13.1
|
306
|
G50-22-005E
|
541760.3
|
376209.9
|
6541822.1
|
376227.3
|
-335.9
|
208.9
|
25.3
|
218.9
|
Note: Eastings and
Northings in MGA, Zone 51
|
SOURCE Karora Resources Inc.