Highlights:
- Follow-up drilling on the 50C Nickel Trough discovery has
defined a nickel mineralized zone of up to 80 metres in width and a
strike length now extending over 150 metres and remaining open to
the southeast along a potential 2.6 kilometres of strike
length.
- Recent drilling up-dip from the previously reported high
grade 50C discovery (11.6% Ni over 4.6 metres (downhole) in drill
hole G50-22-005E) intersected high grade nickel mineralization,
including intersections1 of:
-
- G50-22-006NE: 4.0% Ni over 3.5 metres1
- G55-22-001NE: 5.3% Ni over 2.2 metres
Assays are pending on a further
16 holes.
- These results further support the 50C nickel trough as
having similar mineralization to the historic Beta Zone which has
to date produced in excess of 32,000 tonnes of nickel metal at an
average grade of 2.6% Ni.
1.
Downhole intervals. True widths cannot be determined with
currently available information.
|
TORONTO, Oct. 8, 2021 /CNW/ - Karora Resources Inc. (TSX:
KRR) ("Karora" or the "Corporation") is pleased to announce
follow-up drilling has defined an 80 metre wide nickel mineralized
zone, extended from the previously reported preliminary estimate of
50 metres, at the 50C nickel trough discovery at Beta Hunt. The 50C
nickel trough, discovered earlier this year (see Karora news
release dated April 6, 2021), is
located south of the Gamma Island Fault. The follow-up drill
results announced today represent an extension to the previously
reported nickel sulphide mineralization and further support the
significant upside potential for nickel as a by-product credit to
Karora's growing gold production profile.
Paul Huet, Chairman and CEO of
Karora said, "With each drill result, the nickel potential at Beta
Hunt continues to build towards a very meaningful by-product
contributor for Karora. We have now extended the width of nickel
mineralization at the 50C discovery to over 80 metres along a
strike length of 150 metres, remaining open along 2.6 kilometres of
potential strike to the southeast. The high nickel grades
intersected in the first two follow-up drill holes to the 50C
discovery are very encouraging, with pending assays for sixteen
remaining holes expected in the fourth quarter.
As a reminder, 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 previous mining operations. The
development provides access to optimal underground drill bay areas
to quickly advance exploration work and potentially facilitate both
faster development and mining.
Gamma Zone - 50C Nickel Trough and 10C Mineral
Resource
In the second half of 2021 Karora, has undertaken a 6,000 metre
drill program aimed at extending both the previously reported 50C
nickel trough discovery and the adjacent 10C nickel Mineral
Resource. The 50C discovery was highlighted by the previously
reported intersection of 11.6% Ni over 4.6 metres (downhole) in
drill hole G50-22-005E. To date, 28 holes have been drilled for
4,986 metres. Assay results for the 50C and 10C drilling programs
have been received for 6 holes.
50C Nickel Trough Drilling: The first two holes of
the program tested the basalt-ultramafic contact in a position
immediately up-dip from the discovery intersection in hole
G50-22-005E. The new intersections are respectively spaced at 20
metres and 50 metres from the discovery intersection, and, combined
with the two previously reported intersections (holes G50-22-005E
and G50-22-003E) support a total width of the nickel mineralized
zone of over 80 metres.
Assay results for these holes are as follows:
- G50-22-006NE: 4.0% Ni over 3.5 metres
- G55-22-001NE: 5.3% Ni over 2.2 metres
1.
Downhole intervals. True widths cannot be determined with
currently available information.
|
Nickel mineralization on the targeted basalt/ultramafic contact
has been logged as massive, matrix-supported and disseminated
nickel sulphide, indicating that the nickel sulphide intercepts are
representative of an intact nickel trough.
Drilling totaling eighteen holes has been completed up to 45
metres south and 100 metres north along strike from the discovery
intersection with nickel sulphide mineralization evident in twelve
of the completed holes. Porphyry intrusives in the northern drill
sections have replaced parts of the nickel contact mineralization
position as drilling moves closer to the Gamma Island Fault.
Results are pending for sixteen 50C holes.
10C Nickel Trough: The 10C nickel trough is a
parallel trough to the 50C trough and is part of the Beta South
Mineral Resource (see Technical Report Higginsville-Beta Hunt
Operation, Eastern Goldfields, Western
Australia dated January 29,
2021 available under Karora's profile at www.sedar.com). The
10C drill program is designed to upgrade the existing Inferred
Mineral Resource and extend known nickel mineralization. To date,
drilling has intersected massive sulphide with associated
matrix-supported and disseminated sulphide in three holes,
matrix-supported sulphide in two holes and disseminated sulphide in
four holes. Initial assay results indicate that the mineralization
is well represented by the existing Mineral Resource.
Significant results returned to date from the 10C drilling are
highlighted below:
- G10-22-001NR: 0.4% Ni over 1.5 metres
- G10-22-002NR: 1.0% Ni over 4.6 metres
- G10-22-003NR: 1.2% Ni over 0.9 metres
- G10-22-004NR: 3.5% Ni over 0.3 metres and 2.5% Ni over 0.7
metres
Overall, recent drill results continue to reinforce the
potential for mineralization that is similar to the Beta Zone,
south of the Gamma Island Fault and strengthen the initial
interpretation that this new mine area, which is only 140 metres
from existing mine development, represents a significant growth
opportunity for by-product nickel production at Beta Hunt.
The structural and mineralogical characteristics of the 50C
trough closely align with those of the Western Nickel Belt at the
southern end of the Beta nickel workings indicating that the 50C
nickel mineralization represents an offset extension to the Western
Nickel Belt. The 10C is interpreted to be the offset extension to
the Eastern Nickel Belt and has structural and mineralogical
characteristics that are consistent with this interpretation. There
is potential for both belts to join within the Gamma Zone
mineralized system. Further drilling is required to support this
interpretation.
It is anticipated that all nickel assay results from the first
stage of drilling the Gamma Zone will be received before the end of
2021 in time to produce a revised nickel mineralization model to be
completed during the first quarter of 2022. The revised model will
form the basis of a follow-up drill program planned for the first
half of 2022.
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 doubling gold production to 200,000 ounces
by 2024 compared to 2020 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 1.6 Mtpa processing
plant, expanding to a planned 2.5 Mtpa by 2024, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. 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 1,900 square kilometers. The Company
also owns the high grade Spargos Reward project which began mining
in 2021. Karora has a strong Board and management team focused on
delivering shareholder value and responsible mining, as
demonstrated by Karora's commitment to reducing emissions across
its operations. Karora's common shares trade on the TSX under the
symbol KRR and 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.
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 Significant Intersections –
Nickel1 (September
2021)
Hole ID
|
From
(m)
|
To
(m)
|
Downhole
Interval (m)
|
% Ni
2.
|
G10-22-001NR
|
80.0
|
81.5
|
1.5
|
0.40
|
G10-22-002NR
|
96.6
|
101.2
|
4.6
|
0.97
|
G10-22-003NR
|
92.0
|
92.9
|
0.9
|
1.19
|
G10-22-004NR
|
79.3
|
79.6
|
0.3
|
3.52
|
103.4
|
104.1
|
0.7
|
2.49
|
G50-22-006NE
|
119.0
|
122.5
|
3.5
|
3.96
|
137.9
|
139.0
|
1.1
|
1.66
|
G55-22-001NE
|
101.5
|
103.7
|
2.2
|
5.25
|
1.
Downhole widths. Estimated true widths cannot be determined with
available information.
|
2.
Reported nickel grades > 1%.
|
Table 2: Beta Hunt Gamma Zone Drill Holes (for Results
Reported October 2021)
Hole ID
|
MGA
N
|
MGA
E
|
mRL
|
AZI
(degrees)
|
DIP
(degrees)
|
Total
Length
(m)
|
G10-22-001NR
|
541778.4
|
6376271.8
|
-336
|
216
|
33
|
180
|
G10-22-002NR
|
541778.4
|
6376271.8
|
-336
|
216
|
43
|
137
|
G10-22-003NR
|
541779.4
|
6376271.8
|
-334
|
215
|
71
|
106
|
G10-22-004NR
|
541773.4
|
6376274.8
|
-334
|
193
|
42
|
126
|
G50-22-006NE
|
541773.4
|
6376276.8
|
-333
|
186
|
56
|
102
|
G55-22-001NE
|
541773.4
|
6376276.8
|
-333
|
164
|
71
|
96
|
Note: Eastings and
Northings in MGA, Zone 51
|
SOURCE Karora Resources Inc.