TORONTO, Sept. 14,
2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX:
KRRGF) ("Karora" or the "Corporation") is pleased to announce a new
nickel discovery and positive results from its ongoing nickel drill
program. In the Hunt Block above Western Flanks, infill drilling of
the existing gold Mineral Resource intersected high grade nickel
mineralization in two holes above the gold Mineral Resource. This
mineralization, interpreted as an offset to the 4C nickel trough
mined by Reliance Mining ("Reliance") in 2004/05, is only 25 metres
from existing development actively used for mining of the Western
Flanks gold deposit. Positive results were also received from
drilling which is focused on upgrading and extending the 30C and
25C (south of the 30C) Mineral Resources. In a target zone parallel
to Western Flanks, Stage 1 of the 44C drill program intersected
nickel sulphides on and proximal to the ultramafic/basalt contact
indicating potential for a repeat of the 40C trough, north of the
Alpha Island Fault in the Hunt Block. Highlights from the recent
drill results are listed below1.
Hunt Block
- 4C offset: 6.5% Ni over 11.9 metres
(BW-1704-07AG)
- 4C offset: 3.0% Ni over 4.6 metres
(BW-1704-05AG)
Beta Block
- 30C: 2.0% Ni over 4.0 metres (BL1890-001AR)
- 30C: 3.0 % Ni over 1.8 metres (BL1890-006AR)
- 25C: 5.1% Ni over 3.3 metres (B25-20-006NE)
- 25C: 4.6% Ni over 1.3 metres (B25-20-014NE)
1. Interval
lengths are downhole widths. Estimated true widths cannot be
determined with available information
|
Results support the extension of the current nickel Mineral
Resource and provide for short term mining opportunities to replace
some of the current remnant mining as the Company builds towards
increased nickel production in 2024 based on the results of the
recently released Nickel PEA (see Karora news release dated
August 12, 2022).
Paul Andre Huet, Chairman &
CEO, commented: "I am encouraged by the latest set of nickel drill
results from both the 4C Offset nickel trough and the 44C target.
The 4C Offset is located above the Western Flanks gold Mineral
Resource and just 25 metres from the extensive existing Western
Flanks mining infrastructure. This discovery is particularly
exciting and significant because it represents a potential new high
grade nickel zone that we can potentially mine in the near term.
Additionally, the latest Beta Block drill results from the 30C and
25C nickel troughs reinforce the upside potential for Mineral
Resource extensions and upgrades as outlined in the nickel PEA we
announced last month for Beta Hunt. We expect ongoing drilling in
the Hunt, Beta and Gamma Blocks to continue to demonstrate the
significant potential Mineral Resource additions outside of the
zones on which the PEA is based. Today's results also highlight the
potential to identify new channels of nickel mineralization
amenable to mining in the short term to accelerate the shift away
from our current practice of remnant mining in historic nickel
stopes. Encountering nickel intercepts such as 5.1% over 3.3
metres and 4.6% over 1.3 metres certainly highlight the
exciting potential that we are seeing as we execute our drill
program."
Beta Hunt Nickel Drilling
Update
From February 1, 2022 to
July 31, 2022, a total of 37 nickel
resource definition and exploration holes were drilled at Beta Hunt
for 4,121 metres. Drilling was conducted in the Beta and Hunt
Blocks. Beta Block drilling was focused on upgrading and extending
the 30C and 25C (south of the 30C) Mineral Resources with the aim
of identifying intact nickel mineralization channels as short term
mining opportunities to accelerate the planned shift to focus more
on new production areas as outlined in our recently announced
nickel PEA for Beta Hunt (see Karora news release dated
August 12, 2022). Currently, nickel
production is focused on remnant mineralization from historic
nickel stopes which carries a higher cost of mining. Hunt Block
drilling tested the existence of the 44C nickel trough parallel to
and west of Western Flanks. The 4C offset was discovered as part of
an infill drilling program of the existing Western Flanks gold
Mineral Resource close to the ultramafic/basalt contact.
![Figure 1: Beta Hunt plan view highlighting + 1% nickel results for the February to August 2022 period and location of 4C Offset and 44C Ni Target (CNW Group/Karora Resources Inc.) Figure 1: Beta Hunt plan view highlighting + 1% nickel results for the February to August 2022 period and location of 4C Offset and 44C Ni Target (CNW Group/Karora Resources Inc.)](https://mma.prnewswire.com/media/1898098/Karora_Resources_Inc__Karora_Resources_Drills_6_5__Nickel_over_1.jpg)
Hunt Block
4C Offset: Infill drilling at the top of the Western
Flanks gold Mineral Resource at the south end of the deposit
intersected high grade, contact-related, nickel sulphide
mineralization in two holes drilled 30 metres apart along strike.
The mineralization is interpreted to be the offset extension of the
4C nickel deposit previously mined by Reliance in 2004/05.
Significantly, these intersections are located only 25 metres from
existing development. Significant intersections1.from
these two holes are highlighted below:
- · BW-1704-07AG: 6.5% Ni over 11.9 metres
- · BW-1704-05AG: 3.0% Ni over 4.6 metres
1. Interval lengths
are downhole widths. Estimated true widths cannot be determined
with available information
|
The intersection in drill hole BW-1704-07AG (6.5% Ni over 11.9
metres) comprises four layers of massive sulphide mineralization,
up to 2.5 metres thick, interbedded with both matrix and
disseminated sulphide layers. The multiple massive sulphide layers
indicate this intersection to represent stacked repeats of the same
massive layer, though no visual evidence of thrusting to produce
the repeats was observed in the drill core. Follow-up infill and
extensional drilling is in progress to better define the geometry
and extent of this new discovery.
44C: This nickel target is the interpreted northern
offset extension to the 40C trough (Beta Block) and is located 140
metres west of the Western Flanks gold deposit. Stage 1 drilling of
the 44C was recently completed with nickel sulphides intersected in
seven of eleven holes, on and proximal to the ultramafic/basalt
contact. Assay results are pending.
The drill core observation of contact-related nickel
mineralization supports the potential of a repeat of the 40C nickel
trough, west of Western Flanks in the Hunt Block.
Beta Block
The Beta block drill program was successful in both upgrading
and extending the existing resources as highlighted by the
significant results listed below:
30C
- BL1890-1AR: 2.0% Ni over 4.0m
metres
- BL1890-6AR: 3.0% Ni over 1.8 metres
25C
- B25-20-006NE: 5.1% Ni over 3.3 metres
- B25-20-007NE: 5.0% Ni over 0.7 metres
- B25-20-011NEA: 2.8% Ni over 2.2 metres
- B25-20-014NE: 4.6% Ni over 1.3 metres
1.
Interval lengths are downhole widths. Estimated true widths
cannot be determined with available information
|
The drill results will be incorporated into an updated nickel
Mineral Resource to provide improved mining options as nickel
production builds towards increased production in 2024 based on the
results of the recently released Nickel PEA.
Nickel Exploration Going Forward
Karora continues to drill test for new nickel troughs encouraged
by recent successes. Exploration drilling planned for the remainder
of 2022 will include follow-up drilling to infill and extend
mineralization intersected in the new 4C offset and 44C targets
plus testing the 90C target (see Karora news release, Aug 12, 2022). The 90C is the interpreted offset
extension to the Beta West mine area. This target is supported by a
coincident trough/sulphide reflector on the ultramafic/basalt
contact interpreted from the 3-Dimensional seismic study completed
by previous owner, Consolidated Minerals in 2008. The 90C drilling
is a co-funded program with the Western Australian State Government
under their Exploration Incentive Scheme (EIS).
Drilling for extensions along strike of the 50C is planned for
2023 once the BRI development drive is extended by a further 300
metres, due to be completed by Q1 2023. The extended BRI will
provide drill access to undertake both resource definition and
extensional/exploration drilling.
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 increasing gold production to a targeted
range of 185,000-205,000 ounces by 2024 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, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. Karora recently acquired the 1.0 Mtpa Lakewood Mill in
Western Australia. At Beta Hunt, a
robust gold Mineral Resource and Reserve are 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 Corporation
also owns the high grade Spargos Reward project, which came into
production 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 production
guidance, full year consolidated 2022 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.
Table 1: Beta Hunt Nickel - Significant Results -
Feb 1, 2022 to July 31, 2022
Target
|
Hole ID
|
Sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)2.
|
Ni
%1.
|
25C
|
B25-20-002NE
|
|
33.8
|
34.5
|
0.7
|
2.1
|
B25-20-004NE
|
|
24.8
|
25.5
|
0.7
|
3.8
|
B25-20-006NE
|
|
25.7
|
29.0
|
3.3
|
5.1
|
B25-20-007NE
|
|
27.2
|
27.9
|
0.7
|
5.0
|
B25-20-008NE
|
|
30.6
|
31.0
|
0.4
|
2.1
|
B25-20-011NEA
|
|
32.8
|
35.0
|
2.2
|
2.8
|
B25-20-012NE
|
|
33.2
|
33.6
|
0.4
|
1.7
|
B25-20-014NE
|
|
26.5
|
27.8
|
1.3
|
4.6
|
B25-20-027NE
|
|
25.3
|
25.4
|
0.1
|
3.3
|
30C
|
B30-1890-20NR
|
|
82.3
|
83.6
|
1.3
|
0.9
|
BL1890-01AR
|
|
77.5
|
81.4
|
4.0
|
2.0
|
BL1890-04AR
|
|
71.5
|
73.0
|
1.6
|
0.8
|
|
78.6
|
79.1
|
0.5
|
1.6
|
BL1890-06AR
|
|
2.0
|
3.8
|
1.8
|
3.0
|
BL1890-07AR
|
|
2.5
|
3.0
|
0.5
|
6.7
|
4C offset
|
BW-1704-05AG
|
|
116.1
|
120.7
|
4.6
|
3.0
|
BW-1704-07AG
|
|
118.6
|
130.5
|
11.9
|
6.5
|
1.
|
Downhole widths.
Estimated true widths cannot be determined with available
information.
|
2.
|
Reported nickel
grades >0.7%.
|
Table 2: Drillhole Collars – Beta Hunt for Significant Nickel
Results Reported Feb 1, 2022 to
July 31, 2022
Target/
|
Hole
ID
|
MGA_N
|
MGA_E
|
mRL
|
DIP
|
AZI
|
Total Length
(m)
|
Prospect
|
25C
|
B25-20-002NE
|
6542478.6
|
375812.8
|
-334.5
|
61.1
|
253.9
|
91.6
|
25C
|
B25-20-004NE
|
6542478.8
|
375816.4
|
-334.0
|
75.6
|
74.8
|
51.0
|
25C
|
B25-20-006NE
|
6542457.6
|
375813.7
|
-336.6
|
72.1
|
239.8
|
51.2
|
25C
|
B25-20-007NE
|
6542457.7
|
375815.5
|
-335.9
|
86.4
|
232.6
|
44.7
|
25C
|
B25-20-008NE
|
6542458.5
|
375816.7
|
-336.0
|
74.4
|
52.5
|
51.0
|
25C
|
B25-20-011NEA
|
6542478.4
|
375815.3
|
-333.8
|
73.1
|
247.5
|
48.0
|
25C
|
B25-20-012NE
|
6542478.2
|
375815.2
|
-333.8
|
59.4
|
198.6
|
54.1
|
25C
|
B25-20-014NE
|
6542456.5
|
375816.4
|
-336.1
|
57.1
|
180.0
|
54.0
|
25C
|
B25-20-027NE
|
6542406.6
|
375851.7
|
-346.0
|
81.3
|
38.5
|
78.0
|
30C
|
B30-1890-20NR
|
6542768.7
|
375345.0
|
-385.6
|
25.3
|
25.8
|
155.9
|
30C
|
BL1890-01AR
|
6542768.9
|
375345.2
|
-386.4
|
17
|
24.7
|
173.8
|
30C
|
BL1890-04AR
|
6542768.6
|
375345.1
|
-385.4
|
22
|
41.7
|
170.9
|
30C
|
BL1890-06AR
|
6542768.8
|
375346.2
|
-387.9
|
-23.7
|
44.6
|
167.7
|
30C
|
BL1890-07AR
|
6542768.7
|
375346.2
|
-388.1
|
-42.6
|
46.4
|
188.8
|
30C
|
BL1890-08AR
|
6542754.4
|
375363.6
|
-386.0
|
15.3
|
46.4
|
170.7
|
4C Offset
|
BW-1704-05AG
|
6543632.9
|
375352.3
|
-291.0
|
-21.2
|
228.0
|
152.8
|
BW-1704-07AG
|
6543632.9
|
375352.3
|
-291.0
|
-21.1
|
227.4
|
176.8
|
![Karora Resources Logo (CNW Group/Karora Resources Inc.) Karora Resources Logo (CNW Group/Karora Resources Inc.)](https://mma.prnewswire.com/media/1898101/Karora_Resources_Inc__Karora_Resources_Drills_6_5__Nickel_over_1.jpg)
SOURCE Karora Resources Inc.