Highlights:
- Infill and step out drilling, along with face
samples3 have resulted in Beta Hunt's
new Larkin Zone continuing to support the existence of a
potential third major gold resource in addition to A Zone and
Western Flanks. New assay highlights1,2
include:
-
- EL-EA2-003AG: 7.6 g/t over 5.8 metres within a
zone of 4.2g/t over 12.2 metres
- EL-EA2-009AR: 2.6 g/t over 10.5 metres and 44.8 g/t
over 0.9m
- EL-EA2-010AR: 5.8 g/t over 8.1 metres
- EL-EA2-025AR: 7.1 g/t over 5.0 metres
- Face sample (Face 1-1940N): 6.1g/t over 4.6
metres
- Face sample (Face 2-1940N): 4.8g/t over 5.0
metres
1. Interval
lengths are estimated true widths
|
2. Tables showing
complete results and drill holes can be found below at the end of
this news release.
|
3. Face sample
results from an exploratory drive (1940 N) along the interpreted
position of the Larkin Zone – Main Zone
|
TORONTO, May 12, 2021 /CNW/ - Karora Resources Inc. (TSX:
KRR) ("Karora" or the "Corporation") is pleased to announce
continued strong drill results from the new Larkin Zone at its
Beta Hunt Mine. The results form part of an infill and step-out
drilling program designed to convert the Larkin Zone discovery (see
Karora news release dated September 10,
2020) into Mineral Resources. A maiden Mineral Resource
estimate for the Larkin Zone is planned for inclusion in the
Company's 2021 consolidated resource update.
Paul Huet, Chairman and CEO of
Karora said, "Today's results demonstrate the continued growth of
the Larkin Gold discovery which now extends over an interpreted
strike length of 650 metres and up to 120 metres down dip, while
continuing to remain open along strike and at depth. Results
to-date support our view that Larkin has excellent potential to be
the third major gold production centre at Beta Hunt in addition to
current mining operations in Western Flanks and A Zone.
Today's results include very encouraging infill drill intercepts
and face samples. An intercept of 4.2g/t over 12.2 metres including
7.6 g/t over 5.8 metres in drill core EL-EA2-003AG as well as a
face sample of 6.1 g/t over 4.6 metres build upon the strong
results previously reported in February. The face sample was taken
from an exploration drive approximately 150 metres south of the
area from which the new drill intercepts are being reported.
I am very pleased with how far we have advanced the work to
achieve a maiden Mineral Resource estimate for the Larkin Zone. It
has been only seven months since we announced the first discovery
holes. We have leveraged the extensive infrastructure already in
place to accelerate both drilling and sampling work. Without this
infrastructure in place (as a result of Beta Hunt's historic nickel
operations), this resource definition work would cost far in excess
of our current costs. Simply put, this is a major advantage we have
over other underground operations.
For our maiden resource calculation, we intend to complete drill
testing of Larkin over a strike length of 1,000 metres and up to
150 metres below the ultramafic / basalt contact during the third
quarter. We are excited to deliver this maiden resource just one
year after initial discovery and intend to include it in our
consolidated 2021 reserve and resource update. Larkin is certainly
looking like the next major step forward in underground mining at
Beta Hunt."
Larkin Zone Drilling
The Larkin Zone is interpreted as the faulted southern offset of
the Western Flanks zone (Figure 1). The 30C nickel resource lies
directly above the gold mineralization associated with the Larkin
Zone (See Karora Technical Report dated February 1, 2021, www.sedar.com).
Resource definition drilling in the Larkin Zone completed
through the end of first quarter now totals 29 holes for 6,720
metres. The balance of the drill program (an additional 22 holes
totalling 2,800 metres), which will test the southern extension of
Larkin, is expected to be completed in the third quarter of 2021
(Figure 1).
The drill program is designed to test the Larkin Zone over 1,000
metres of strike and up to 150 metres below the nickel contact.
Turn-around times on assay results continue to be held-up by
industry-wide laboratory capacity issues resulting from increased
demand for their services and labour supply hurdles related to
COVID 19 restrictions. As restrictions ease, this situation is
expected to improve going forward.
Since the previous update on the Larkin Zone (see Karora news
release, Feb. 1, 2021), assay results
have been received for an additional ten holes with significant
results1.detailed below:
- EL-EA2-003AG: 4.2g/t over 12.2 metres including
7.6 g/t over 5.8 metres, and 92 g/t over 0.4 metres
- EL-EA2-009AR: 2.6 g/t over 10.5 metres and 44.8 g/t over
0.9m
- EL-EA2-010AR: 5.8 g/t over 8.1 metres
- EL-EA2-016AE: 3.0 g/t over 4.2 metres and 3.0g/t over 5.0
metres
- EL-EA2-020E: 3.7 g/t over
5.7metres
- EL-EA2-025AR: 7.1 g/t over 5 metres
1. Interval
lengths are estimated true widths
|
The ten holes were designed to infill previously reported drill
results between the Alpha Island Fault to the north and the 40
Access drill cuddy to the south (Karora news release, February 1, 2020). Drill results have now
confirmed mineralization over 500 metres along strike and 120
metres below the ultramafic/basalt contact (down dip). Preliminary
interpretation of the results to date show the Larkin Zone is
comprised of two to three, steep dipping, mineralized zones (Figure
2) of varying widths (3 metres to 12 metres) with mineralization
associated with biotite-albite-pyrite altered steep-dipping shear
zones and narrow, extensional quartz veins, similar in style to the
A Zone and Western Flanks deposits.
![Figure 2: Cross-Section of Larkin Zone Looking Northwest (+/- 40m) Highlighting Recent Drill Results. (refer to Figure 1 for location). (CNW Group/Karora Resources Inc.) Figure 2: Cross-Section of Larkin Zone Looking Northwest (+/- 40m) Highlighting Recent Drill Results. (refer to Figure 1 for location). (CNW Group/Karora Resources Inc.)](https://mma.prnewswire.com/media/1508554/Karora___Figure_2_2.jpg)
Also, since previously reporting on the Larkin Zone, two level
development cuts were taken as an exploratory drive initiated from
the existing 1940 development (Figure 1) along the interpreted
west-dipping main zone to assist in interpreting Larkin Zone
mineralization. Face sample results from the first two cuts taken
from the 1940N exploration drive show intense alteration and
veining supported by gold grades in-line with results from drilling
to the south. The 1940 face samples extend the Larkin Zone 150
metres north of reported drill results for a total strike length of
650 metres. Assay results from the face samples1.are
shown below:
- Face 2-1940N: 4.8g/t over 5.0 metres
- Face 1-1940N: 6.1g/t over 4.6 metres
1. Interval
lengths are estimated true widths
|
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. Drill core samples for gold analysis in this instance
were shipped to ALS Laboratories, Perth for preparation and assaying by 50gram
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. Wall samples were shipped to the Kalgoorlie SGS
laboratory. Wall samples are collected as rock chips using a G-pick
along a horizontal sample traverse. All rock chip samples are
submitted with at least one CRM (standard) every 20 samples. Where
problems have been identified in QAQC checks, Karora personnel and
the SGS and ALS 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 timing for
the completion of technical studies 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, Larkin Zone Significant
Intersections – Results to April 30,
2021
Hole
ID
|
Sub
Interval
|
From(m)
|
To(m)
|
Downhole
Interval (m)
|
Estimated
True Width
(m)
|
Au (g/t)1,
2
|
EL-EA2-003AG
|
|
155.3
|
168.1
|
12.8
|
12.2
|
4.21
|
including
|
155.3
|
157.3
|
2.0
|
1.9
|
3.81
|
and
|
162.0
|
168.1
|
6.1
|
5.8
|
7.55
|
and
|
163.4
|
163.8
|
0.4
|
0.4
|
91.97
|
EL-EA2-009AR
|
|
6.0
|
7.0
|
1.0
|
0.9
|
44.80
|
|
82.9
|
84.0
|
1.1
|
1.0
|
6.76
|
|
86.4
|
88.0
|
1.6
|
1.5
|
1.76
|
|
143.4
|
147.8
|
4.4
|
4.1
|
2.78
|
|
156.4
|
167.7
|
11.3
|
10.5
|
2.58
|
including
|
164.4
|
165.2
|
0.8
|
0.8
|
13.85
|
|
188.7
|
190.2
|
1.5
|
1.4
|
3.75
|
|
192.2
|
192.5
|
0.4
|
0.4
|
2.74
|
|
225.8
|
228.0
|
2.2
|
2.0
|
3.12
|
|
241.0
|
243.0
|
2.0
|
1.9
|
5.01
|
EL-EA2-010AR
|
|
4.4
|
5.0
|
0.6
|
0.4
|
14.25
|
|
114.0
|
115.0
|
1.0
|
0.7
|
3.87
|
|
121.4
|
123.7
|
2.3
|
1.7
|
2.72
|
|
141.0
|
152.0
|
11.0
|
8.1
|
5.75
|
including
|
142.0
|
144.0
|
2.0
|
1.5
|
12.33
|
and
|
148.5
|
151.2
|
2.7
|
2.0
|
11.14
|
|
172.0
|
174.0
|
2.0
|
1.5
|
3.30
|
|
179.0
|
183.0
|
4.0
|
2.9
|
2.42
|
|
206.2
|
210.0
|
3.8
|
2.8
|
1.63
|
EL-EA2-016AE
|
|
2.6
|
3.0
|
0.5
|
0.4
|
5.22
|
|
78.9
|
80.9
|
2.0
|
1.7
|
1.92
|
|
130.0
|
133.6
|
3.6
|
3.0
|
4.51
|
|
156.0
|
157.5
|
1.5
|
1.3
|
3.46
|
|
163.5
|
165.0
|
1.5
|
1.3
|
1.81
|
|
167.5
|
171.5
|
4.0
|
3.3
|
2.41
|
|
176.2
|
178.3
|
2.1
|
1.7
|
1.83
|
|
187.0
|
187.6
|
0.6
|
0.5
|
8.17
|
|
210.0
|
210.6
|
0.6
|
0.5
|
5.68
|
|
214.0
|
217.0
|
3.0
|
2.5
|
1.81
|
|
220.0
|
220.3
|
1.0
|
0.9
|
2.11
|
|
228.0
|
233.0
|
5.0
|
4.2
|
3.04
|
|
246.0
|
248.0
|
2.0
|
1.7
|
2.42
|
|
272.50
|
276.00
|
3.50
|
2.9
|
3.50
|
|
289.88
|
294.70
|
4.82
|
4.0
|
1.88
|
|
345.5
|
349.6
|
4.1
|
3.4
|
2.49
|
|
351.4
|
352.0
|
0.6
|
0.5
|
2.94
|
|
392.0
|
393.0
|
1.0
|
0.8
|
4.07
|
|
406.1
|
407.0
|
0.9
|
0.8
|
4.65
|
EL-EA2-017AR
|
|
112.0
|
113.0
|
1.0
|
0.7
|
7.06
|
|
172.7
|
173.7
|
1.0
|
0.7
|
2.29
|
|
180.0
|
182.0
|
2.0
|
1.5
|
2.54
|
|
214.0
|
217.0
|
3.0
|
2.2
|
1.86
|
EL-EA2-020E
|
|
142.5
|
143.0
|
0.5
|
0.4
|
5.01
|
|
147.6
|
155.8
|
8.2
|
6.7
|
2.08
|
including
|
154.0
|
155.8
|
1.8
|
1.5
|
5.64
|
|
192.7
|
195.1
|
2.4
|
1.9
|
3.76
|
|
231.0
|
238.0
|
7.0
|
5.7
|
3.69
|
including
|
235.1
|
236.2
|
1.1
|
0.9
|
15.33
|
EL-EA2-021E
|
|
116.0
|
117.0
|
1.0
|
0.6
|
2.09
|
|
174.0
|
176.0
|
2.0
|
1.2
|
14.48
|
|
207.0
|
210.0
|
3.0
|
1.8
|
4.16
|
including
|
208.0
|
209.0
|
1.0
|
0.6
|
11.40
|
|
252.0
|
254.4
|
2.4
|
1.4
|
2.07
|
|
258.0
|
261.0
|
3.0
|
1.8
|
2.13
|
|
264.0
|
266.5
|
2.5
|
1.5
|
2.57
|
|
271.0
|
272.0
|
1.0
|
0.6
|
2.11
|
EL-EA2-022E
|
|
170.9
|
175.4
|
4.5
|
2.1
|
3.53
|
|
188.7
|
190.8
|
2.2
|
1.0
|
1.74
|
EL-EA2-024AR
|
|
156.0
|
157.0
|
1.0
|
0.6
|
4.56
|
|
172.0
|
177.0
|
6.0
|
3.8
|
2.14
|
|
217.0
|
220.0
|
3.0
|
1.9
|
2.57
|
|
231.0
|
235.0
|
4.0
|
2.5
|
3.16
|
|
245.0
|
248.0
|
3.0
|
1.9
|
4.29
|
|
255.0
|
256.0
|
1.0
|
0.6
|
17.40
|
|
272.0
|
275.0
|
3.0
|
1.9
|
2.29
|
|
285.0
|
288.0
|
3.0
|
1.9
|
3.60
|
|
298.0
|
299.4
|
1.4
|
0.9
|
2.24
|
|
328.0
|
330.0
|
2.0
|
1.3
|
4.60
|
EL-EA2-025AR
|
|
144.0
|
145.0
|
1.0
|
0.7
|
3.36
|
|
186.5
|
189.0
|
2.5
|
1.8
|
2.77
|
|
220.0
|
221.0
|
1.0
|
0.7
|
2.11
|
|
240.2
|
244.7
|
4.5
|
3.3
|
2.01
|
|
259.0
|
260.0
|
1.0
|
0.7
|
6.34
|
|
274.0
|
281.0
|
7.0
|
5.0
|
7.09
|
including
|
274.5
|
276.0
|
1.5
|
1.1
|
13.25
|
|
290.9
|
292.6
|
1.7
|
1.2
|
3.55
|
1. Reported
gold grades > 1.0 g/t over 1 metre.
|
2. Uncut
gold assays
|
Table 1(b): Beta Hunt, Larkin Zone Wall Sampling,
1940N Exploration Drive
Face
Sample ID
|
Sub
Interval
|
From(m)
|
To(m)
|
Sample
Interval
(m)
|
Estimated
True Width
(m)
|
Au
(g/t)1, 2
|
Face
1-1940N
|
|
0.0
|
4.6
|
4.6
|
4.6
|
6.1
|
Face
1-1940N
|
|
0.0
|
5.0
|
5.0
|
5.0
|
4.8
|
1. Uncut gold assays.
|
2. Full width of available face
sampled.
|
Table 2: Beta Hunt, Larkin Zone Drill Holes with
Results Reported – Feb. 2 to Apr. 30,
2021
Hole ID
|
Northing
|
Easting
|
mRL
|
AZI
|
DIP
|
Total
Length (m)
|
EL-EA2-003AG
|
542853.5
|
375481.5
|
-419.6
|
247.5
|
24.7
|
197.83
|
EL-EA2-009AR
|
542854.4
|
375481.7
|
-421.6
|
262.8
|
3.4
|
249.2
|
EL-EA2-010AR
|
542854.4
|
375481.7
|
-421.9
|
259.1
|
-7.7
|
246.6
|
EL-EA2-016AE
|
542854.8
|
375481.8
|
-420.9
|
271.2
|
-7.3
|
434
|
EL-EA2-017AR
|
542854.7
|
375481.7
|
-422.4
|
270.9
|
-19.4
|
261
|
EL-EA2-020E
|
542855.2
|
375481.0
|
-421.9
|
282.0
|
-6.1
|
282
|
EL-EA2-021E
|
542854.8
|
375481.7
|
-422.3
|
281.0
|
-16.6
|
302.99
|
EL-EA2-022E
|
542854.9
|
375480.8
|
-420.1
|
293.0
|
15.1
|
260.8
|
EL-EA2-024AR
|
542854.3
|
375482.1
|
-420.6
|
288.5
|
-4.9
|
342.46
|
EL-EA2-025AR
|
542855.2
|
375481.0
|
-422.6
|
286.8
|
-14.9
|
339.59
|
Note:
Eastings and Northings in MGA, Zone 51.
|
SOURCE Karora Resources Inc.