TORONTO, May 24, 2022
/CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF)
("Karora" or the "Corporation") is pleased to announce that
development of the second decline at Beta Hunt is tracking on cost
and ahead of schedule with the estimated completion date now
brought forward to Q1 2023 from mid-2023. The second decline at
Beta Hunt is integral to Karora's production growth plan to double
throughput at Beta Hunt to 2 Mtpa and increase gold production to
between 185,000 and 205,000 ounces by 2024.
- 198.5 g/t over 4.5 metres (AW17LN-01AE);
- 18.6 g/t over 15.0 metres (AF-AZDDC1-11AE); and
- 18.3 g/t over 4.0 metres (AW-AZDDC1-02AR).
Interval lengths are downhole widths. Estimated true widths
cannot be determined with currently available information
Results from the surface drilling program also supports the
interpretation of a newly discovered shear zone named 'Sorrenson',
located to the east and parallel to A Zone and Western Flanks. The
discovery of the Sorrenson shear zone follows the success of the
Larkin and Fletcher shear zone discoveries, adding to the rapidly
expanding mineralized system at Beta Hunt.
Paul Andre Huet, Chairman &
CEO, commented: "I am thrilled with the progress made to-date by
our teams to significantly progress development of the second
decline ahead of schedule at the Beta Hunt Mine. The efforts to
secure the DMIRs permits followed by rapid execution of our decline
development plan, all while tracking on budget, is a tremendous
achievement in light of the current inflationary environment
negatively impacting many operations and development projects
across our sector. A job well done.
I am also extremely pleased with the drilling results at Western
Flanks, A Zone North, Fletcher and the newly interpreted Sorrenson
shear zone which further validates the tremendous growth potential
of Beta Hunt. With our aggressive exploration drill program, we
continue to identify new shear zones and, as exemplified with the
success of Larkin, convert them into resource inventory. The
continued discovery of these new shear zones is one of many reasons
we are excited about the long-life potential of the Beta Hunt
operation.
Overall, we continue to build upon the world class exploration
potential of Beta Hunt, while our development teams execute on our
second decline plans to double throughput to 2 Mtpa."
Exploration drilling at Western Flanks returned significant high
grade results of 198.5 g/t over 4.5 metres in hole AW17LN-01AE in
drilling designed to test the northern extension of the zone and
18.6 g/t over 15.0 meters in hole AF-AZDDC1-11AE and 18.3 g/t over
4.0 metres in hole AW-AZDDC1-02AR in drilling designed to support
and expand the existing Mineral Resource.
Recent exploration drill results at A Zone North include a 20.3
g/t over 2.0 metres intercept in hole SAZ-002-AE supporting A Zone
North's extension. Importantly, this extension is proximal to the
location of the second decline and is expected to provide early
access to potential near-surface mining blocks in support of the
growth plan.
Beta Hunt Second Decline Progress
Following final approvals received from Department of Mines,
Industry Regulation and Safety ("DMIRS") for the surface collaring
and box cut development work, decline development from underground
has advanced approximately 500 metres since commencement, with the
main vent access drive on the 801 level being within 15 metres of
completion. Surface portal construction is approximately 70%
complete with surface decline development expected to commence Q3
2022.
Beta Hunt Drilling Update
From January 1, 2022 to
April 30, 2022, a total of 49 gold
resource definition and exploration holes were drilled at Beta Hunt
for 10,647 metres. Drilling focused on testing A Zone North,
extending and infilling Western Flanks and testing the down-dip
position of the Fletcher Zone. Encouraging initial drilling results
were received from the newly interpreted mineralized shear zone
known as Sorrenson, which is located to the east and parallel to A
Zone and Western Flanks. Figure 2 below summarizes significant
drilling results and their location over this period.
Gold Focused Drilling
Western Flanks: As part of the program to upgrade
the existing Inferred Mineral Resource, drilling targeted both
Western Flanks Central and South. Results support, and in some
cases expand, upon the existing interpreted mineralization. For
example, hole AF-AZDDC1-11AE returned 18.6 g/t over 15.0 metres
(See figure 3).
Drilling also tested the northern strike extension of Western
Flanks with drill hole AW17LN-01AE returning 198.5 g/t over 4.5
metres. The intersection occurs in the footwall of Western Flanks
and is associated with pyrrhotite-rich sediment and altered
porphyry. Further follow-up drilling is planned for this area.
Significant results1 from the Western Flanks resource
definition and exploration drilling are listed below:
- AW17LN-01AE: 198.5 g/t over 4.5 metres
- AF-AZDDC1-11AE: 18.6g/t over 15.0 metres
- AW-AZDDC1-02AR: 18.3 g/t over 4.0 metres
- WW405DD-09AR: 2.5 g/t over 11.8 metres
- WW405DD-12AR: 9.2 g/t over 3.0 metres
- Interval lengths are downhole widths. Estimated true widths
cannot be determined with currently available information
A Zone North: Significant results were returned from
A-Zone North and continue to provide encouragement for an extension
to the current mineral resource and the opportunity to exploit
mineralization from the new second decline. Significant
results1. include:
- SAZ-002-AE: 20.3 g/t over 2.0 metres
- SAZ-008-AE: 2.1 g/t over 10.0 metres
- Interval lengths are downhole widths. Estimated true widths
cannot be determined with available information
Sorrenson: Initial results received from testing the
interpreted Sorrenson shear zone support its existence including
1.5g/t over 7.6 metres (downhole) in drill hole SSOR-05-AE which
validates the mineralization thesis. Drilling is being conducted on
three, 400 metre spaced lines with additional results pending from
the program.
Fletcher: Drilling on the Fletcher Shear Zone continues
to support a continuous mineralized shear zone with an intersection
of 1.5 g/t over 4.0 metres (downhole) in drill hole AF-AZDDC1-11AE,
over 130 metres down dip from the nearest intersection, extending
the mineralized zone at depth. Further drilling is planned at
Fletcher to test continuity of the zone and its potential as
another major shear zone at Beta Hunt.
Nickel and Sampling Update
Nickel drilling re-commenced in the Beta Block targeting the 30C
and 25C (south of the 30C), with an update to be provided once
results are received and interpreted.
A re-sampling program of historical holes is underway at Beta
Hunt, yielding additional impressive intersections in the Mason
shear zone compared to those previously recorded (located to the
West of the Larkin zone, see Figure 2). The results1.
include:
- Historic drill hole BE19-296: 2.6g/t over 9.8 metres
(previously 3.5g/t over 0.8 metres)
- Historic drill hole BE19-285: 1.2 g/t over 17.5
metres, including 2.4g/t over 3.8 metres (previously 2.0g/t over
6.5 metres)
- Interval lengths are downhole widths. Estimated true widths
cannot be determined with currently available information
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, 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 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 Company 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.
Table 1: Beta Hunt Gold- Significant Results - January 1, 2022 to April
30, 2022
Target/Prospect
|
Hole ID
|
Sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)2
|
Au
(g/t)1
|
Western
Flanks
|
AF-AZDDC1-11AE
|
|
9.0
|
10.8
|
1.8
|
2.4
|
AF-AZDDC1-11AE
|
|
14.0
|
15.0
|
1.0
|
4.3
|
AF-AZDDC1-11AE
|
|
18.6
|
19.0
|
0.4
|
6.0
|
AF-AZDDC1-11AE
|
|
162.0
|
177.0
|
15.0
|
18.6
|
including
|
167.0
|
167.5
|
0.5
|
465
|
AF-AZDDC1-11AE
|
|
183.0
|
190.0
|
7.0
|
2.8
|
AF-AZDDC1-11AE
|
|
258.0
|
267.0
|
9.0
|
1.9
|
Fletcher
|
AF-AZDDC1-11AE
|
|
583.0
|
587.0
|
4.0
|
1.5
|
Western
Flanks
|
AW17LN-01AE
|
|
156.5
|
161.0
|
4.5
|
198.5
|
including
|
158.4
|
159.0
|
0.6
|
148.0
|
AW17LN-01AE
|
|
300.0
|
301.0
|
1.0
|
2.3
|
AW17LN-01AE
|
|
304.7
|
309.0
|
4.4
|
1.1
|
AW17LN-23AR
|
|
4.4
|
5.0
|
0.6
|
4.5
|
AW17LN-23AR
|
|
165.0
|
171.8
|
6.8
|
1.6
|
AW17LN-23AR
|
|
174.0
|
177.0
|
3.0
|
1.0
|
AW17LN-23AR
|
|
188.0
|
190.0
|
2.0
|
2.2
|
AW17LN-24AR
|
|
3.0
|
4.0
|
1.0
|
6.4
|
AW-AZDDC1-02AR
|
|
9.7
|
11.0
|
1.4
|
3.1
|
AW-AZDDC1-02AR
|
|
103.0
|
104.0
|
1.0
|
3.1
|
AW-AZDDC1-02AR
|
|
109.0
|
113.0
|
4.0
|
18.3
|
AW-AZDDC1-02AR
|
|
116.0
|
129.0
|
13.0
|
1.7
|
AW-AZDDC1-07AR
|
|
118.0
|
120.0
|
2.0
|
1.7
|
AW-AZDDC1-07AR
|
|
123.0
|
127.0
|
4.0
|
0.9
|
AW-AZDDC1-07AR
|
|
135.0
|
143.5
|
8.5
|
3.0
|
Larkin
|
B30-19-015NR
|
|
0.0
|
2.4
|
2.4
|
1.7
|
B30-19-020NR
|
|
3.5
|
4.5
|
1.0
|
4.5
|
B30-19-021NR
|
|
0.0
|
7.0
|
7.0
|
1.7
|
B30-19-021NR
|
|
17.0
|
18.5
|
1.5
|
1.4
|
B30-19-021NR
|
|
25.0
|
26.0
|
1.0
|
2.3
|
B30-19-022NR
|
|
0.0
|
3.0
|
3.0
|
1.1
|
B30-19-022NR
|
|
15.5
|
18.0
|
2.5
|
3.1
|
B30-19-022NR
|
|
32.0
|
45.0
|
13.0
|
1.5
|
B30-19-022NR
|
|
48.3
|
50.5
|
2.2
|
7.8
|
B30-19-023NR
|
|
38.0
|
43.0
|
5.0
|
1.1
|
Gamma
|
G55-22-010NE
|
|
74.0
|
75.0
|
1.0
|
6.3
|
G55-22-010NE
|
|
166.0
|
170.6
|
4.6
|
7.0
|
A Zone North
|
SAZ-002-AE
|
|
199.0
|
201.0
|
2.0
|
20.3
|
SAZ-002-AE
|
|
325.0
|
330.0
|
5.0
|
3.4
|
SAZ-003-AE
|
|
209.0
|
210.0
|
1.0
|
2.2
|
SAZ-003-AE
|
|
351.8
|
354.0
|
2.3
|
1.1
|
SAZ-003-AE
|
|
606.0
|
608.0
|
2.0
|
2.8
|
SAZ-006AE
|
|
187.0
|
189.0
|
2.0
|
1.0
|
SAZ-006AE
|
|
266.0
|
269.0
|
3.0
|
1.2
|
SAZ-008-AE
|
|
233.8
|
234.6
|
0.8
|
5.2
|
SAZ-008-AE
|
|
244.0
|
246.0
|
2.0
|
2.2
|
SAZ-008-AE
|
|
260.0
|
262.3
|
2.3
|
5.6
|
SAZ-008-AE
|
|
267.0
|
271.0
|
4.0
|
2.0
|
SAZ-008-AE
|
|
274.0
|
284.0
|
10.0
|
2.1
|
Sorrenson
|
SSOR-05-AE
|
|
302.0
|
309.6
|
7.6
|
1.5
|
Western Flanks
South
|
WW405DD-06AR
|
|
98.0
|
109.0
|
11.0
|
1.5
|
WW405DD-09AR
|
|
140.2
|
152.0
|
11.8
|
2.5
|
WW405DD-09AR
|
|
171.4
|
174.6
|
3.2
|
4.8
|
WW405DD-12AR
|
|
93.0
|
96.0
|
3.0
|
9.2
|
WW405DD-22AR
|
|
5.9
|
11.0
|
5.1
|
1.5
|
WW405DD-22AR
|
|
34.0
|
35.0
|
1.0
|
3.7
|
WW405DD-22AR
|
|
39.0
|
40.0
|
1.0
|
2.6
|
WW405DD-22AR
|
|
63.0
|
65.0
|
2.0
|
2.8
|
WW405DD-31AR
|
|
17.0
|
19.0
|
2.0
|
3.0
|
WW405DD-31AR
|
|
74.0
|
77.0
|
3.0
|
5.2
|
WW405DD-31AR
|
|
83.0
|
87.0
|
4.0
|
3.3
|
Mason (Beta
Block)
|
BE19-296
(Historic)
|
|
179.0
|
188.8
|
9.8
|
2.6
|
BE19-285
(Historic)
|
|
270.5
|
278
|
17.5
|
1.2
|
- Reported gold grades > 1.0 g/t downhole and gram x metre
> 2.
- Estimated true widths cannot be determined with available
information
Table 2 Drillhole Collars – Beta Hunt for Significant Results
Reported January 1, 2022 to
April 30, 2022
Target/
|
Hole
ID
|
MGA_N
|
MGA_E
|
mRL
|
DIP
|
AZI
|
Total
Length (m)
|
Prospect
|
AZONE
|
SAZ-002-AE
|
6544899.3
|
374040.1
|
289.0
|
-68.0
|
358.1
|
408.2
|
AZONE
|
SAZ-003-AE
|
6544898.5
|
374040.2
|
288.9
|
-78.1
|
358.7
|
708.5
|
AZONE
|
SAZ-006AE
|
6544976.3
|
373922.0
|
289.3
|
-63.3
|
41.0
|
351.1
|
AZONE
|
SAZ-008-AE
|
6544879.9
|
374050.4
|
289.2
|
-63.6
|
48.0
|
381.1
|
BETA
|
B30-19-015NR
|
6542662.9
|
375524.8
|
-380.3
|
73.5
|
265.4
|
33.0
|
BETA
|
B30-19-020NR
|
6542644.2
|
375543.4
|
-381.7
|
40.9
|
243.0
|
62.8
|
BETA
|
B30-19-021NR
|
6542653.6
|
375538.5
|
-380.4
|
73.7
|
46.4
|
69.1
|
BETA
|
B30-19-022NR
|
6542653.7
|
375538.9
|
-380.3
|
61.8
|
45.1
|
69.1
|
BETA
|
B30-19-023NR
|
6542669.8
|
375520.6
|
-381.9
|
46.7
|
334.4
|
68.8
|
BETA
|
BE19-285
|
6542439.6
|
375424.0
|
-404.0
|
-24.1
|
266.9
|
399.9
|
BETA
|
BE19-296
|
6542439.6
|
375424.0
|
-404.0
|
-14.6
|
278.0
|
358.8
|
FLET
|
AF-AZDDC1-11AE
|
6544332.5
|
374724.6
|
-283.9
|
-41.9
|
243.6
|
736.1
|
GAMMA
|
G55-22-010NE
|
6541900.3
|
376203.0
|
-338.3
|
43.8
|
234.5
|
182.9
|
Sorrenson
|
SSOR-05-AE
|
6545161.9
|
374405.3
|
288.5
|
-65.3
|
33.0
|
402.3
|
WF
|
AW17LN-01AE
|
6544655.6
|
374476.5
|
-255.8
|
-3.1
|
266.3
|
329.8
|
WF
|
AW17LN-23AR
|
6544611.7
|
374549.6
|
-257.6
|
-13.2
|
229.5
|
243.0
|
WF
|
AW17LN-24AR
|
6544611.8
|
374549.6
|
-257.6
|
-24.2
|
229.5
|
309.0
|
WF
|
AW-AZDDC1-02AR
|
6544332.5
|
374724.6
|
-283.9
|
-19.8
|
223.0
|
200.8
|
WF
|
AW-AZDDC1-07AR
|
6544332.5
|
374724.6
|
-283.9
|
-14.6
|
229.4
|
156.0
|
WF
|
WW405DD-06AR
|
6543680.7
|
375262.8
|
-398.7
|
-42.8
|
250.6
|
200.7
|
WF
|
WW405DD-09AR
|
6543680.6
|
375262.8
|
-398.9
|
-56.3
|
238.8
|
200.8
|
WF
|
WW405DD-12AR
|
6543680.1
|
375263.1
|
-399.0
|
-45.7
|
220.4
|
168.0
|
WF
|
WW405DD-22AR
|
6543663.2
|
375288.3
|
-397.9
|
-9.6
|
204.2
|
171.3
|
WF
|
WW405DD-31AR
|
6543662.1
|
375291.2
|
-398.0
|
-7.5
|
184.3
|
213.0
|
SOURCE Karora Resources Inc.