Highlights:
- Gold Measured and Indicated Mineral Resources increased by
20% to 1.35 million ounces
- Gold Inferred Mineral Resource increased by 34% to 1.05
million ounces
- Gold Proven and Probable Mineral Reserve increased by 12% to
538,000 ounces
TORONTO, Feb. 13,
2023 /CNW/ - Karora Resources Inc. (TSX: KRR)
(OTCQX: KRRGF) ("Karora" or the "Corporation") is pleased to
announce Gold Measured and Indicated ("M&I") Mineral Resource,
net of depletions, at its flag ship Beta Hunt Mine has
increased by 20% and the Inferred Mineral Resources have increased
by 34%. The update is highlighted by the net additions to the
Western Flanks zone of 146,000 ounces in Measured and Indicated
Resources and 338,000 ounces of Inferred Mineral Resources. Gold
Proven and Probable Reserves also increased by 12%, or 56,000
ounces, to 538,000 ounces. Both resources and reserves have an
effective date of September 30,
2022.
Paul Andre Huet, Chairman &
CEO, commented: "During our 2022 drilling campaign, we were
squarely focused on expanding our resource inventory at Beta Hunt,
with significant step out and infill drilling completed to bring
potentially mineralized zones identified via exploration drilling
into the resource categories. We were very successful in our
efforts, with major contributions to both Measured and Indicated
and Inferred Resources, increasing by 20% and 34%,
respectively.
The bulk of our mined tonnes and ounces at Beta Hunt are
currently sourced from Western Flanks, our largest mineralized
shear zone. In 2022, we significantly expanded this zone both along
strike and at depth, resulting in a 19% increase in Measured and
Indicated Resources and an increase of 77% in Inferred Resources at
Western Flanks, net of mining depletion. The large primary shear
zone has now been delineated to a strike length of 1.8 kilometres
and over 550 metres down-dip but still remains open at depth
providing significant potential for further expansion.
Our success in expanding the Beta Hunt Mineral Resource is a
critical step in continuing to feed an extended mine life as we
increase production rates over the next couple years. Once the
expanded Beta Hunt mining capacity is fully ramped up to its
targeted capacity of 2 Mtpa, approximately 80% of our mill feed
will come from our flagship Beta Hunt mine.
While we remained focused on turning exploration into Inferred
resources over the last two years, I am also very pleased to
announce a 12% increase to the Beta Hunt Gold Proven and Probable
Reserve. Our new Reserve adds 56,000 ounces, net of mining
depletions of approximately 164,000 ounces, compared to our prior
estimate. Our new increased total of 538,000 ounces positions us
well for many years of mining ahead as we continue to expand our
resources and convert resources to reserves. In 2023, we will be
focusing both on upgrading Inferred Mineral Resources to the
Measured and Indicated categories and on continued expansion of our
Reserve base, net of mining depletions.
Beta Hunt is a very large system comprised of extensive, wide
and continuous mineralized shear zones which have been extended
both along strike and at depth. We have also discovered numerous
parallel shear zones over the last several years including Larkin,
Fletcher and now Mason and Cowcill. As can be seen in Figure 1, we
have built a tremendous track record of continued resource growth
via the drill bit at Beta Hunt with inventories rising over 500%
since 2016. As we continue to execute on our aggressive underground
drilling program in 2023, leveraging the +400km of extensive
infrastructure already in place, we look forward to continued
potential ounce additions supporting an extended mine life at Beta
Hunt."
Beta Hunt Gold Mineral Resource
Summary
The updated Gold Mineral Resource is effective as of
September 30, 2022 and represents an
update to the previously released Beta Hunt Mineral Resource as of
January 31, 2022 (see KRR release,
April 7, 2022). The updated Indicated
Gold Mineral Resource totals 1.35 million ounces, an increase of
20% (227,000 ounces). The updated Inferred Gold Mineral Resource
now totals 1.05 million ounces, representing a 34% (266,000 ounces)
increase. The result continues the trend of increasing Mineral
Resources (Figure 1). The Beta Hunt Mineral Resource estimate is
net of mine production depletion of 0.76 million tonnes grading 2.3
g/t for 56,000 ounces over the period February 1, 2022 to September 30, 2022 period.
Table 1: Beta Hunt Gold Mineral Resources as at September 30, 2022
Note: Refer to
detailed footnotes below
Sep 2022
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
|
183
|
2.6
|
15
|
10,873
|
2.6
|
900
|
11,056
|
2.6
|
916
|
8,607
|
2.8
|
775
|
A Zone
|
86
|
2.4
|
7
|
4,028
|
2.3
|
298
|
4,114
|
2.3
|
305
|
2,832
|
2.2
|
203
|
Larkin
|
-
|
-
|
-
|
1,710
|
2.4
|
131
|
1,710
|
2.4
|
131
|
1,005
|
2.3
|
74
|
Total
|
269
|
2.5
|
22
|
16,611
|
2.5
|
1,329
|
16,880
|
2.5
|
1,351
|
12,444
|
2.6
|
1,052
|
The new Mineral Resource reflects the results from new drilling
designed to extend and upgrade the January
31, 2022 Mineral Resource in support of the Karora Growth
Plan which is underpinned by an expansion to 2.0 Mtpa mine
production from Beta Hunt (see Karora news release, June 28, 2021). All three previously reported
Mineral Resources comprising Western Flanks, A Zone and Larkin were
updated. The location of all three resources is shown in Figure
2.
Western Flanks
At Western Flanks, resource definition and exploration drilling
focused on upgrading the margins of the existing Mineral Resource
and testing the down-dip extension of the mineralization. This work
successfully extended the Mineral Resource up to 250 metres below
the previous resource limit (see KRR news release, dated
October 25, 2022) resulting in the
zone contributing the bulk of the updated Mineral Resource
increase. The Western Flanks Measured and Indicated Resources
increased by 19% (143,000 ounces) and the Inferred Resource
increased by 77% (338,000 ounces).
A Zone and Larkin
A Zone drilling concentrated on upgrading and extending the
northern margin of the existing resource. This work resulted in the
A Zone Measured and Indicated Resource increasing by 31% (72,000
ounces) and the Inferred Resource increasing by 9% (16,000
ounces).
Larkin drilling focused on upgrading the existing resource. This
work resulted in the Larkin Measured and Indicated Resource
increasing by 10% (12,000 ounces) with a decrease of 54% (88,000
ounces) in the Inferred Resource. The reduction in Inferred ounces
at Larkin mostly reflects a geological re-interpretation of the
north end of the resource which downgraded the size and grade of
the previous interpretation based on new drilling data.
2023 Drilling Program
For 2023, gold drilling will be focused on upgrading Inferred
Resources to Indicated status to provide the opportunity for
increased Mineral Reserves. Significant exploration drilling is
also planned to be undertaken targeting previously defined
mineralized zones (Figure 3).
In the Hunt Block, exploration drilling is planned to test the
along strike continuity of the Fletcher Zone and the northern
up-plunge potential of A Zone. In the Beta Block, infill and
extensional drilling of the Cowcill and Mason Zones is aimed at
following up some of the recently reported drill intersections
including 12 g/t over 17 metres and 6.0 g/t over 13.0 metres (See
Karora news releases dated October 25
and August 25, 2022) with the aim of
adding these mineralized zones to the Beta Hunt Resource
Inventory.
Beta Hunt Mineral Reserve
Summary
The updated Gold Mineral Reserve is effective as of September 30, 2022, and represents an update to
the previously released Beta Hunt Mineral Reserve as of
September 30, 2020 (see KRR release,
December 16, 2020)
The updated Gold Mineral Reserve now totals 538,000 ounces,
representing a 12% (56,000 ounces) increase from the,
September 30, 2020, Mineral
Reserve estimate.
The Beta Hunt Mineral Reserve is net of mine production
depletion of 1.91 million tonnes grading 2.7 g/t for 164,000 ounces
over the period October 1st, 2020, to September 30, 2022.
Table 2: Beta Hunt Gold Mineral Reserves as at September 30, 2022
Note: Refer to
detailed footnotes below
Sep-2022 Mineral
Reserve
|
Proven
|
Probable
|
Proven &
Probable
|
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Kt
|
g/t
|
Koz
|
Western
Flanks
|
101
|
2.4
|
8
|
4,727
|
2.5
|
386
|
4,827
|
2.5
|
393
|
A Zone
|
14
|
3.2
|
1
|
1,200
|
2.2
|
85
|
1,214
|
2.2
|
87
|
Larkin
|
-
|
-
|
-
|
719
|
2.5
|
58
|
719
|
2.5
|
58
|
Total
|
115
|
2.5
|
9
|
6,646
|
2.5
|
529
|
6,761
|
2.5
|
538
|
The 2022 Beta Hunt Reserve additions within the Western Flank
and A Zone mine areas have replaced production depletions, with the
new southern production area, Larkin, contributing to the increase
in reserves with a maiden Proven and Probable Mineral Reserve of
719k tonnes at a grade of 2.5 g/t for
58,000 ounces.
Technical Report
The Beta Hunt Mineral Resource and Reserve estimate will be
detailed in a technical report prepared in accordance with NI
43-101 to be filed under the Corporation's SEDAR profile at
sedar.com within 45 days of the date of this news release.
Compliance Statement (JORC 2012
and NI 43-101)
Mr. Stephen Devlin is Group
Geologist 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 technical information for the Beta Hunt Gold
Mineral Resource included in this news release.
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
technical information for the Beta Hunt Gold Mineral Reserves
included in this news release.
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
30,2022
- Mineral Resources are not Mineral Reserves and 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.
- The Measured and Indicated Mineral Resources are inclusive of
those Mineral Resources modified to produce Mineral Reserves.
- 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.
- The Gold Mineral Resource is estimated using a long term gold
price of US$1,675/oz with a US:AUD
exchange rate of 0.70.
- The Gold Mineral Resource is reported using a 1.4g/t Au cut-off
grade.
- Beta Hunt is an underground mine and to best represent
"reasonable prospects of eventual economic extraction" the mineral
resource was reported taking into account areas considered
sterilized by historical mining. These areas were depleted from the
Mineral Resource.
- 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
Beta Hunt Mineral Reserve Estimates as at September 30, 2022
- The Gold Mineral Reserve is estimated using a long-term gold
price of US$1,450/oz with a US:AUD
exchange rate of 0.70.
- At Beta Hunt, underground Mineral Reserves are reported at a
1.8 g/t cut-off grade. The cut-off grade takes into account
Operating Mining, Processing/Haulage and G&A costs, excluding
capital.
- The Mineral Reserve is depleted for all mining to September 30, 2022.
- 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 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. In July 2022, Karora 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, among other
items, production guidance, the organic growth profile and the
potential of the Beta Hunt Mine and Higginsville Gold Operation,
the Aquarius and Two Boys Projects, Spargos Gold Mine and Lake
Cowan prospect.
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.
www.karoraresources.com
SOURCE Karora Resources Inc.