Karora Drilling at Beta Hunt Extends Western Flanks Mineralization 150 metres Below Mineral Resource Including 13.6 g/t Over 5.3 metres
TORONTO, August 2, 2022 – Karora Resources Inc. (TSX:KRR; OTCQX:KRRGF) ("Karora" or the “Corporation" - https://www.commodity-tv.com/ondemand/companies/profil/karora-resources-inc/ ) is pleased to announce drill results that confirm the consistency of the Western Flanks Main shear mineralization up to 150 metres below the current Mineral Resource. The Western Flanks is Beta Hunt’s largest zone and these results provide confidence for the continued expansion of Karora’s resource base. In addition to extending the Main Shear mineralization, drilling has also outlined significant footwall mineralization which is not included in the current Mineral Resource.
Intersection highlights from both the Western Flanks Deeps and infill ongoing underground diamond drill program are listed below1.:
Western Flanks Deeps (outside of Mineral Resource)
- WW-SP2-003AE: 13.6 g/t over 5.3 metres, including 0.6m @ 113 g/t
- WW-SP2-009AE: 2.1 g/t over 7.6 metres
- WW-SP2-002AE: 2.7 g/t over 6.7 metres
- WW-SP2-002AE: 4.0 g/t over 8.3 metres - Footwall
Western Flanks Infill
- WW-SP2-006AR: 2.8 g/t over 17.7 metres
- WW386SP-06AR: 3.1 g/t over 11.7 metres
- WW386SP-01AR: 5.9 g/t over 5.1 metres
- WW-SP2-004AR: 6.1 g/t over 4.5 metres
Interval lengths are estimated true widths.
Paul Andre Huet, Chairman & CEO, commented: "I am pleased with the latest set of drill results from Beta Hunt’s Western Flanks zone which continue to demonstrate the Mineral Resource growth potential of the mine.
Today’s announced results successfully reinforced the two main objectives of the Western Flanks drill program by extending the gold mineralized zone by 150 metres at depth, as demonstrated with an intercept of 13.6 g/t over 5.3 metres, and infill drilling demonstrated the potential to upgrade the current Mineral Resource, including a result of 5.9 g/t over 5.1 metres.
Western Flanks is currently the largest known shear system at Beta Hunt and the continued growth of the zone is encouraging for both near term mining potential and extension of the life of mine. Beyond Western Flanks, the potential for additional gold Mineral Resources in drilling at A Zone North, Fletcher, Gamma and the newly discovered Sorrenson Zone underscores our goal of expanding the multiple shear zones currently defined at the underground operation.”
Beta Hunt Drilling Update
From May 1, 2022 to June 30, 2022, a total of 55 gold resource definition and exploration holes were drilled at Beta Hunt for 12,685 metres. Gold drilling focused on extending and infilling at Western Flanks and the Larkin Zone. Nickel drilling was limited to the Beta Block targeting the 25C (south of the 30C) and testing of the interpreted 44C trough west of the Western Flanks, with an update to be provided once all results are received and interpreted, expected later in 3Q 2022.
Drilling Results
Significant drilling results and their location over the period May 1 to July 23, 2022 are shown in Figure 1 and detailed in Table 1. Results for the Larkin Zone were previously reported in the Karora news release date July 19, 2022.
Figure 1: Beta Hunt plan view highlighting recent gold results received for period May – July 2022
Western Flanks Deeps: Drilling has been designed to support the Karora growth plan by upgrading and extending the current Mineral Resource. As part of the current program, drilling tested the down-dip continuation of the gold mineralization below the central portion of the deposit, up to 150 metres below the existing resource. Significant results returned to date from this drilling are highlighted below:
- WW-SP2-003AE: 13.6 g/t over 5.3 metres, including 113 g/t over 0.6 metres
- WW-SP2-009AE: 2.1 g/t over 7.6 metres
- WW-SP2-002AE: 2.7 g/t over 6.7 metres
- WW-SP2-002AE: 4.0 g/t over 8.3 metres (Footwall)
Interval lengths are estimated true widths.
Results show strong mineralization in the targeted main shear zone position up to 150 metres below the current resource and confirm the strength of the Western Flanks gold system which remains open at depth. The Main Shear Zone now extends over 350 metres down-dip. In addition to the Main Shear mineralization, drilling has also highlighted new footwall mineralization not previously included in any resource model.
Figure 2: Western Flanks Deeps X sections looking north. Sections are 80m apart in plane of Main Shear. Refer Figure 1 for location.
Western Flanks Resource Definition: Infill drilling was dominated by results received for Western Flanks Central with some results from the southern end of the deposit. Results generally support and, in some cases, have upgraded the current Mineral Resource. Significant results are listed below:
- WW-SP2-006AR: 2.8 g/t over 17.7 metres;
- WW386SP-06AR: 3.1 g/t over 11.7 metres
- WW386SP-01AR: 5.9 g/t over 5.1 metres;
- WW-SP2-004AR: 6.1 g/t over 4.5 metres
1. Interval lengths are estimated true widths
The Exploration and Resource Definition results are expected to expand the current Western Flanks Mineral Resource which represents Karora’s biggest, single Mineral Resource totaling 8.8Mt @ 2.7g/t 772kozs (Measured & Indicated) & 5.0Mt @ 2.7g/t, 437kozs (Inferred). The results will be incorporated into the updated Consolidated Mineral Resource due for release in Q4 2022.
A Zone North: Final results were returned from two holes drilled as part of the surface diamond drilling program with a best result of 8.1 g/t over 1.6 metres (estimated true width) in the targeted A zone position. This result along with the results from the rest of the surface drilling program will be incorporated into the updated Consolidated Mineral Resource.
Gold drilling results from infill nickel drill holes targeting the 25C and 30C in the Beta Block were also received. These holes were highlighted by 12.6 g/t over 2.4 metres (estimated true width) within the Larkin Zone. Larkin results were previously reported in Karora news release, July 19, 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 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 and the potential of the Beta Hunt Mine, Higginsville Gold Operation, the Aquarius Project and the Spargos Gold Project, the commencement of mining at the Spargos Gold Project and the completion of the resource estimate.
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.
For more information, please contact:
Rob Buchanan
Director, Investor Relations
T: (416) 363-0649
In Europe:
Swiss Resource Capital AG
Jochen Staiger
Table 1: Beta Hunt Significant Gold Results – May 1, 2022 to July 23, 2022 (excludes Larkin results reported in Karora news release July 19, 2022)
Target / Prospect
Hole ID
Sub interval
From (m)
To (m)
Downhole Interval (m)
Estimated True Width
Au (g/t)1.
25C
B25-20-016NR
11
16
5
4.6
1.7
B25-20-019NE
59
62.7
3.7
3.2
2.7
B25-20-021NE
78
79
1
0.9
7.8
B25-20-025NE
72
76
4
3.2
1.5
30C
B30-1890-18NR
43
48.5
5.5
4.4
1.8
76
83
7
5.6
1.6
90.7
99
8.3
6.6
1.3
B30-1890-19NR
58
66
8
5.5
2.8
B30-1890-20NR
113
116
3
2.4
12.6
LARK
BL1890-15AR
9
16
7
5.4
1.6
67
70
3
2.3
2.5
275
279
4
3.1
2.1
Western Flanks
BW-1704-01AR
101
109
8
6.3
2.2
120
124
4
3.1
1.3
BW-1704-02AR
20
21
1
1
5.8
113
121
8
5.8
2.3
BW-1704-10AR
15.8
18
2.2
1.8
3.9
135
138
3
1.9
2.4
WW386SP-01AR
55
58.5
3.5
3.5
3.8
78
117.1
39.1
25
1.5
including
78
86
8
8
1.4
including
88.85
99
10.15
6.5
1.7
including
102
117.1
15.1
9.7
1.8
124
126
2
1.3
3.6
146
154
8
5.12
5.9
WW386SP-03AR
88
93
5
3.7
1.6
WW386SP-05AR
90
94
4
2.94
1.3
WW386SP-06AR
93
110.2
17.2
11.7
3.1
114
121
7
4.8
1.5
WW386SP-07AR
43
45.78
2.78
2.6
3.5
92
96.66
4.66
2.6
1.6
105.4
109
3.6
2
3.5
162
163
1
0.56
5.5
WW386SP-09AR
40
41.35
1.35
0.95
3.7
76
79
3
2.1
2.6
98
99
1
0.59
8.0
109
114
5
3
3.2
121.4
122.05
0.65
0.4
26.6
WW405DD-01AR
161
167
6
2.8
1.8
80.8
92.0
11.3
9.0
2.3
144.0
148.0
4.0
3.2
3.0
150.7
154.0
3.3
2.6
6.1
WW-SP2-002AE
122
142
20
8.3
4.0
183
199.23
16.23
6.7
2.7
204
206
2
0.83
4.6
WW-SP2-003AE
152.9
155
2.1
1.7
10.5
311
315
4
2.4
1.6
340
349
9
5.3
13.6
including
340
341
1
0.6
113.0
WW-SP2-004AR
107
111
4
3.6
4.9
116
118
2
1.8
2.9
128
129.65
1.65
1.49
6.8
146
157
11
7.4
2.0
160
166
6
5.4
3.8
239
244
5
4.5
6.1
WW-SP2-006AR
100
102.05
2.05
1.9
3.7
110
117
7
6.5
1.8
142
148
6
4
2.3
157
175
18
17.7
2.8
222
226
4
3.9
3.0
236
240
4
3.9
4.7
WW-SP2-008AE
131
135
4
3.5
2.1
211
213.9
2.9
1.9
3.1
222.5
229
6.5
4.3
1.4
WW-SP2-009AE
143
146
3
2.5
3.8
246.2
249
2.8
2.3
2.7
268
287.9
19.9
7.6
2.1
including
268
278
10
3.7
1.7
including
281
287.9
6.9
2.5
3.5
WW-SP2-012AE
209.5
212
2.5
1.4
2.9
AZONE
SAZ-005-AE
306
307
1
0.7
5.1
SAZ-007-AE
313
315
2
1.6
8.1
Reported gold grades > 1.0 g/t downhole and gram x metre > 5
Table 2 Beta Hunt - Drillhole Collars for Significant Gold Results reported May 1, 2022 to July 23, 2022 (excludes Larkin results reported in Karora news release July 19, 2022)
Target/
Hole ID
MGA_N
MGA_E
mRL
DIP
AZI
Total Length (m)
Prospect
BETA
B25-20-016NR
6542446.9
375823.9
-339.0
61.5
181.9
54
BETA
B25-20-019NE
6542424.0
375837.1
-344.0
56.0
203.2
78
BETA
B25-20-021NE
6542404.2
375851.2
-348.0
39.4
214.1
104.9
25C
B25-20-025NE
6542391.3
375864.3
-351.0
12.8
235.4
140.7
30C
B30-1890-18NR
6542754.5
375363.6
-384.9
29.6
47.0
119.6
30C
B30-1890-19NR
6542754.4
375363.6
-385.0
26.5
69.1
165
BETA
B30-1890-20NR
6542768.0
375345.3
-387.0
25.3
25.8
155.9
LARK
BL1890-15AR
6542754.3
375363.7
-387.7
-40.1
84.9
335.9
WF
BW-1704-01AR
6543632.9
375352.3
-291.0
-20.4
194.7
167.9
WF
BW-1704-02AR
6543632.9
375352.3
-291.0
-34.4
195.3
127.2
WF
BW-1704-10AR
6543632.9
375352.3
-291.0
-51.3
201.7
166
AZONE
SAZ-005-AE
6545009.0
373873.9
289.0
-77.1
43.0
503.7
AZONE
SAZ-007-AE
6544975.8
373921.6
289.4
-74.4
40.2
464.9
WF
WW386SP-01AR
6544009.1
374944.1
-381.5
-24.1
269.5
207
WF
WW386SP-03AR
6544008.8
374944.1
-381.5
-30.4
248.5
170.9
WF
WW386SP-05AR
6544008.8
374944.1
-381.7
-31.8
220.5
141
WF
WW386SP-06AR
6544008.7
374944.2
-381.5
-42.2
219.5
194.97
WF
WW386SP-07AR
6544007.9
374944.7
-381.8
-29.8
195.5
187.3
WF
WW386SP-09AR
6544007.2
374945.2
-381.7
-22.4
179.5
228.2
WF
WW405DD-01AR
6543680.7
375262.8
-398.5
-35.3
270.1
242.9
WF
WW-SP2-001AR
6544117.0
374904.9
-354.4
-32.8
214.9
206.6
WF
WW-SP2-002AE
6544116.5
374905.6
-354.4
-51.4
211.1
337.3
WF
WW-SP2-003AE
6544116.1
374906.1
-354.5
-61.7
210.0
360
WF
WW-SP2-004AR
6544117.4
374904.5
-354.4
-37.6
230.6
257.9
WF
WW-SP2-006AR
6544117.2
374904.5
-354.4
-35.3
240.4
269.9
WF
WW-SP2-008AE
6544117.2
374904.6
-354.2
-51.0
251.5
335.1
WF
WW-SP2-009AE
6544119.0
374902.0
-354.7
-60.7
243.4
428.7
WF
WW-SP2-012AE
6544121.7
374899.8
-354.6
-42.1
270.8
323.9