Karora Resources Drills 12.0 g/t over 17.0 metres in New Mason Zone and Extends Western Flanks Mineralization to 250 metres Below Current Mineral Resource
TORONTO, October 25, 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 two significant new developments resulting from wide-spaced gold exploration drilling at its Beta Hunt Mine. Drill results continue to provide confidence in the development of the Mason Zone into a significant new mining opportunity west of the Larkin Mineral Resource.
In addition, Western Flanks deep drilling has now intersected Main Shear mineralization up to 250 metres below the current Mineral Resource at the southern end of the zone at higher grades than the current Resource. Western Flanks is Beta Hunt’s largest shear zone and these latest results provide more confidence for the expansion of our key resource asset in support of Karora’s previously announced growth plan to have gold production increase to between 185,000 and 205,000 ounces by 2024.
Intersection highlights from both the Mason and Western Flanks Deeps underground diamond drill program are listed below:
Mason1
- BM1941SP3-01AE: 12.0g/t g/t over 17.0 metres
- BM1890-23AE: 4.2 g/t over 11.6 metres
Western Flanks Deeps (outside of Mineral Resource)2
- WW395-16AE: 3.1 g/t over 10.8 metres
- WW395-12AE: 3.6 g/t over 5.4 metres
Interval lengths are downhole widths. Estimated true widths cannot be determined with available information. Interval lengths are estimated true widths.
Paul Andre Huet, Chairman & CEO, commented “The second set of gold drill results from the new Mason Zone and deep drilling of the Western Flanks continue to deliver outstanding results, underpinning our resource growth strategy at Beta Hunt.
The results from Mason support our interpretation of a significant gold mineralized system parallel to, and west of the Larkin Zone. I am particularly excited that the new results include a best-ever Mason intersection of 12.0 g/t over 17.0 metres, on top of the previous strong results that included 6.0 g/t over 13.0 metres (see figure 1 and Karora news release dated August 23, 2022). Additionally, we reported more strong results from the Larkin and Cowcill zones including 7.0 g/t over 7.3 metres and 4.1 g/t over 10.0 metres. Both Mason and Cowcill demonstrate the considerable new potential south of the Alpha Island Fault at Beta Hunt from areas that were previously almost untested for gold mineralization.
The results reported from the Western Flanks deep drilling program are also very important, having now extended mineralization 250 metres below the current Western Flanks gold Mineral Resource at higher grades than the current Western Flanks Measured and Indicated Mineral Resource grade of 2.7 g/t. Infill drilling at Western Flanks designed to upgrade the current Inferred Mineral Resource estimate also returned several strong results including 20.2 g/t over 3.5 metres and 11.5 g/t over 4.7 metres.
Overall, the results reported today support the potential for significant ongoing Mineral Resource growth that exists at Beta Hunt."
Beta Hunt Gold Drilling Update
From July 1, 2022 to September 30, 2022, a total of 40 gold resource definition and exploration holes were drilled at Beta Hunt for 13,664 metres. Gold drilling focused on extending and infilling at Western Flanks, A Zone Deeps and the Larkin, Mason and Cowcill Zones south of the Alpha Island Fault.
Drilling Results
The location off all gold drill holes with assay results received over the period July 24 to October 13, 2022, are shown in Figure 1 and detailed in Table 1. The drilling results include holes targeting nickel which are also assayed for gold mineralization.
Figure 1: Beta Hunt plan view showing all drill traces with gold results received for period July 24 – October 13, 2022. Significant results labelled.
Mason: Results were returned from two holes drilled to test the interpreted Mason Zone mineralization located up to 300 metres west of and parallel to the Larkin Zone. Both holes returned significant assays1.supporting the previously released result of 6.0 g/t over 13 metres in drill hole BM1890-25AE (see Karora release, August 23, 2022) highlighting the potential for a new mining opportunity south of the Alpha Island Fault.
- BM1941SP3-01AE: 12.0 g/t over 17.0 metres;
- BM1890-23AE: 4.2 g/t over 11.6 metres
Interval lengths are downhole widths. Estimated true widths cannot be determined with available information.
Mason Zone mineralization is characterized by strong biotite-pyrite-albite alteration associated with weak to moderate shearing and both shear and extensional quartz veining – similar to Western Flanks mineralization. Mineralization at Mason is now confirmed over a 300 metre strike length.
Significant results also continue to be returned for the Larkin and Cowcill Zones:
- BC1825-01AE: 4.1 g/t over 10.0 metres (Cowcill)
- BL1890-05AR: 7.0 g/t over 7.0 metres (Larkin)
These results support the potential for both the Mason and Cowcill Zones to deliver new mining opportunities south of the Alpha Island Fault. Both zones are still at a relatively early stage in their development and, until now, were virtually untested along strike for gold mineralization as a result of the historical focus on nickel targets along the ultramafic/basalt contact (see Figure 2).
Figure 2: Mason-Larkin-Cowcill X section, Beta Block looking north highlighting recent Mason drill result from BM1941SP3-01AE.
Further, follow-up drilling of the Mason and Cowcill Zones is planned for the fourth quarter.
Western Flanks Deeps: Drilling is 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 southern portion of the deposit as part of the same program that drilled the central, down-dip portion of the deposit. Results for the central portion were previously reported and included intersections of 13.6 g/t over 5.3 metres and 2.7 g/t over 6.7 metres (Karora news release, August 2, 2022). Initial results from drilling the down-dip southern portion of the deposit have now been received with significant intersections1.highlighted below:
- WW395-12AE: 3.6 g/t over 5.4 metres
- WW395-16AE: 3.1 g/t over 10.8 metres;
Interval lengths are estimated true widths.
The new results show strong mineralization in the targeted main shear zone position up to 250 metres below the current resource and, encouragingly, with higher grades (> 3 g/t) than the current Western Flanks Mineral Resource (2.7 g/t). Combined with previously reported results (Karora news release, August 2,2022), the new results indicate continuity of the Western Flanks gold system from 150 metres to 250 metres below the current Mineral Resource over a strike length of 450 metres, with the system remaining open at depth and along strike.
Figure 3: Western Flanks Deeps X section looking north highlighting recent drill results for both A Zone and Western Flanks. 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. Drilling was aimed at upgrading the existing Inferred Mineral Resource. Results generally support and, in some cases, have upgraded the current Mineral Resource. Significant results are listed below:
- WW-SP2-011AR: 2.7 g/t over 13.3 metres
- WW386SP-02AR: 11.5 g/t over 4.7 metres
- WW386SP-12AE: 20.2 g/t over 3.5 metres
- W4-350008NR: 7.8 g/t over 5.9 metres
1. Interval lengths are estimated true widths
The current Western Flanks Mineral Resource represents Karora’s biggest, single Mineral Resource totaling 8.8 Mt @ 2.7 g/t totalling 772 kozs (Measured & Indicated) and 5.0 Mt @ 2.7 g/t totalling 437 kozs (Inferred).
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 and the Spargos Gold Project, and the timing of 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 – July 23, 2022 to October 13, 2022
Targey/Prospect
Hole ID
Sub interval
From (m)
To (m)
Downhole Interval (m)
Estimated True Width
Au (g/t)1.
AZONE
WA380-002AE
3.5
4.6
1.2
11.6
AZONE
WA380-002AE
7.0
12.6
5.6
1.9
AZONE
WA380-002AE
237.0
245.2
8.2
1.1
AZONE
WA380-004AE
200.0
208.3
8.3
1.1
AZONE
WA380-009AE
3.0
6.6
3.6
3.0
14.1
AZONE
WA380-009AE
55.8
60.2
4.4
2.8
AZONE
WA380-009AE
94.0
95.0
1.0
11.6
AZONE
WA380-010AE
17.0
18.0
1.0
7.2
AZONE
WA380-010AE
52.0
64.0
12.0
7.0
3.9
AZONE
WA380-010AE
68.0
70.0
2.0
5.7
AZONE
WA405-036AE
189.0
195.0
6.0
5.2
1.5
AZONE
WA405-036AE
235.0
237.0
2.0
2.8
COW
BC1704-008AE
124.0
126.0
2.0
3.2
COW
BC1704-008AE
169.0
171.0
2.0
4.2
COW
BC1704-008AE
251.0
254.0
3.0
2.7
COW
BC1704-008AE
363.5
366.0
2.5
5.9
COW
BC1704-011AE
86.9
90.1
3.2
3.4
COW
BC1704-011AE
124.0
130.7
6.7
1.3
COW
BC1704-011AE
398.0
399.2
1.2
4.2
COW
BC1704-011AE
463.0
468.0
5.0
7.1
COW
BC1704-011AE
498.4
503.7
5.3
2.3
COW
BC1825-01AE
56.0
59.2
3.2
3.2
COW
BC1825-01AE
65.0
66.0
1.0
19.5
COW
BC1825-01AE
130.0
140.0
10.0
4.1
COW
BC1825-03AE
118.0
119.0
1.0
19.3
LARK
BL1890-05AR
52.3
55.0
2.8
2.1
LARK
BL1890-05AR
57.3
64.5
7.3
7.0
LARK
BL1890-16AR
6.0
18.0
12.0
1.8
LARK
BL1890-16AR
63.5
74.0
10.5
1.4
LARK
BL1890-16AR
80.0
83.0
3.0
5.8
LARK
BL1890-16AR
176.3
183.0
6.7
1.5
LARK
BLB13-07AE
185.0
186.0
1.0
6.7
LARK
BLB13-07AE
289.0
294.0
5.0
2.7
Mason
BM1890-23AE
63.4
75.0
11.6
4.2
Mason
BM1890-23AE
99.0
106.0
7.0
2.4
Mason
BM1890-23AE
138.0
145.0
7.0
2.2
Mason
BM1890-23AE
155.0
156.0
1.0
7.6
Mason
BM1890-23AE
187.0
192.0
5.0
1.7
Mason
BM1890-23AE
244.0
246.0
2.0
7.4
Mason
BM1890-23AE
417.0
419.0
2.0
4.1
Mason
BM1941SP3-01AE
97.4
100.0
2.6
5.3
Mason
BM1941SP3-01AE
303.0
320.0
17.0
12.0
WF
BW-1704-11AR
88.6
100.0
11.4
1.9
WF
BW-1704-11AR
119.0
124.0
5.0
1.7
WF
WW386SP-02AR
85.0
93.0
8.0
2.3
WF
WW386SP-02AR
132.0
137.9
5.9
4.7
11.5
WF
WW386SP-02AR
146.9
148.2
1.4
4.1
WF
WW386SP-02AR
201.0
202.0
1.0
13.0
WF
WW386SP-04AR
95.0
99.0
4.0
3.0
WF
WW386SP-04AR
102.0
122.0
20.0
1.9
WF
WW386SP-04AR
128.0
133.0
5.0
3.4
WF
WW386SP-04AR
136.0
137.0
1.0
7.2
WF
WW386SP-10AR
80.0
85.8
5.8
1.8
WF
WW386SP-10AR
125.0
144.0
19.0
3.8
WF
WW386SP-12AE
101.6
109.0
7.4
3.5
20.2
WF
WW386SP-12AE
193.9
194.5
0.6
9.5
WF
WW386SP-12AE
398.0
412.0
14.0
1.9
WF
WW395-12AE
49.0
56.0
7.0
4.2
1.6
WF
WW395-12AE
340.0
349.0
9.0
5.4
3.6
WF
WW395-16AE
54.3
61.5
7.2
3.6
3.0
WF
WW395-16AE
480.0
502.0
22.0
10.8
3.1
WF
WW-SP2-011AR
120.0
121.0
1.0
7.3
WF
WW-SP2-011AR
125.0
134.4
9.4
1.6
WF
WW-SP2-011AR
138.0
148.0
10.0
2.8
WF
WW-SP2-011AR
151.1
167.0
15.9
13.3
2.7
WF
WW-SP2-011AR
170.0
176.0
6.0
0.9
WF
WW-SP2-011AR
215.0
216.5
1.5
18.5
WF
WW-SP2-013AE
144.0
147.6
3.6
3.8
WF
WW-SP2-013AE
323.0
328.0
5.0
3.8
WF
WW-SP2-013AE
334.0
336.0
2.0
5.5
04C
W4-350-002NR
3.0
8.1
5.1
5.9
04C
W4-350-005NR
0.0
10.0
10.0
2.1
04C
W4-350-005NR
15.5
17.7
2.2
2.8
04C
W4-350-006NR
9.0
12.0
3.0
2.0
04C
W4-350-007NR
22.0
25.0
3.0
2.7
04C
W4-350-008NR
21.0
28.0
7.0
5.9
7.8
04C
W4-350-009NR
1.0
6.3
5.3
1.8
25C
B25-18-001NE
3.0
9.0
6.0
2.8
25C
B25-18-001NE
63.0
66.5
3.5
2.8
25C
B25-18-001NE
69.3
70.1
0.8
12.8
25C
B25-18-003NE
4.0
7.0
3.0
3.2
25C
B25-18-003NE
17.0
20.0
3.0
4.9
25C
B25-18-003NE
23.0
30.0
7.0
2.5
30C
B30-1890-17NR
107.0
110.0
3.0
3.4
40C
W44-405-004NE
73.0
76.0
3.0
4.0
40C
W44-405-020NE
31.0
33.0
2.0
4.8
Reported gold grades > 1.0 g/t downhole and gram x metre > 5
Table 2 Beta Hunt - Drillhole Collars for Significant Gold Results reported July 23 2022 to October 13, 2022
Target/
Hole ID
MGA_N
MGA_E
mRL
DIP
AZI
Total Length (m)
Prospect
AZONE
WA380-002AE
6544148.8
374747.3
-373.4
-26.3
60.1
272.8
AZONE
WA380-004AE
6544148.9
374747.3
-372.6
-1.4
32.6
267.4
AZONE
WA380-009AE
6544149.5
374746.4
-373.7
-40.8
11.9
335.9
AZONE
WA380-010AE
6544148.3
374747.7
-374.3
-65.7
65.3
440.7
AZONE
WA405-036AE
6543701.3
375154.6
-400.0
-35.2
24.1
270.0
AZONE
WA405-037AE
6543701.3
375154.6
-400.0
-58.8
21.6
407.8
COW
BC1704-008AE
6543392.4
375449.2
-292.0
-59.4
255.5
486.0
COW
BC1704-011AE
6543392.4
375449.2
-292.0
-37.4
202.9
591.4
COW
BC1825-01AE
6542757.3
375551.9
-366.9
-24.6
93.7
257.9
COW
BC1825-03AE
6542759.7
375551.2
-366.8
-31.9
56.5
227.9
LARK
BL1890-05AR
6542768.9
375345.5
-387.5
-11.5
40.8
167.9
LARK
BL1890-16AR
6542753.8
375363.9
-387.3
-19.7
95.7
360.5
LARK
BLB13-07AE
6542357.4
375835.4
-399.2
-20.5
196.0
321.4
Mason
BM1890-23AE
6542767.5
375338.8
-388.0
-40.7
273.8
438.2
MASON
BM1941SP3-01AE
6542439.2
375424.9
-406.1
-51.5
247.3
399.0
WF
BW-1704-11AR
6543633.1
375350.7
-290.7
-20.9
239.1
147.5
WF
WW386SP-02AR
6544009.0
374944.1
-381.5
-36.2
267.8
240.0
WF
WW386SP-04AR
6544008.7
374944.2
-381.6
-40.5
246.1
192.0
WF
WW386SP-10AR
6544007.4
374945.2
-381.9
-32.4
179.5
209.8
WF
WW386SP-12AE
6544007.9
374945.5
-382.1
-61.4
184.1
420.6
WF
WW395-12AE
6543803.6
375247.1
-392.8
-50.7
241.1
359.4
WF
WW395-16AE
6543803.6
375247.3
-392.7
-58.3
239.9
548.2
WF
WW-SP2-011AR
6544121.0
374899.6
-354.4
-32.3
252.3
257.9
WF
WW-SP2-013AE
6544121.6
374899.9
-354.7
-54.1
270.3
380.9
04C
W4-350-002NR
6543585.3
375277.7
-340.0
35.0
229.5
42.0
04C
W4-350-005NR
6543543.6
375320.0
-341.0
10.0
229.5
45.0
04C
W4-350-006NR
6543543.6
375320.0
-339.0
27.0
229.5
36.0
04C
W4-350-007NR
6543608.1
375257.5
-342.0
14.0
229.5
39.0
04C
W4-350-008NR
6543608.1
375257.5
-340.0
33.0
229.5
35.8
04C
W4-350-009NR
6543585.3
375277.7
-340.0
24.0
229.5
42.0
25C
B25-18-001NE
6542759.8
375548.8
-362.6
56.8
44.6
92.9
25C
B25-18-003NE
6542759.7
375549.1
-362.5
58.8
76.7
63.0
30C
B30-1890-17NR
6542768.7
375345.2
-385.7
30.8
43.2
146.8
40C
W44-405-004NE
6543561.4
375292.9
-397.0
6.0
207.5
161.6
AZONE
WA380-002AE
6544148.8
374747.3
-373.4
-26.3
60.1
272.8
AZONE
WA380-004AE
6544148.9
374747.3
-372.6
-1.4
32.6
267.4
AZONE
WA380-009AE
6544149.5
374746.4
-373.7
-40.8
11.9
335.9
AZONE
WA380-010AE
6544148.3
374747.7
-374.3
-65.7
65.3
440.7
AZONE
WA405-036AE
6543701.3
375154.6
-400.0
-35.2
24.1
270.0
AZONE
WA405-037AE
6543701.3
375154.6
-400.0
-58.8
21.6
407.8
COW
BC1704-008AE
6543392.4
375449.2
-292.0
-59.4
255.5
486.0
COW
BC1704-011AE
6543392.4
375449.2
-292.0
-37.4
202.9
591.4
COW
BC1825-01AE
6542757.3
375551.9
-366.9
-24.6
93.7
257.9
COW
BC1825-03AE
6542759.7
375551.2
-366.8
-31.9
56.5
227.9
LARK
BL1890-05AR
6542768.9
375345.5
-387.5
-11.5
40.8
167.9
LARK
BL1890-16AR
6542753.8
375363.9
-387.3
-19.7
95.7
360.5
LARK
BLB13-07AE
6542357.4
375835.4
-399.2
-20.5
196.0
321.4
Mason
BM1890-23AE
6542767.5
375338.8
-388.0
-40.7
273.8
438.2
MASON
BM1941SP3-01AE
6542439.2
375424.9
-406.1
-51.5
247.3
399.0
WF
BW-1704-11AR
6543633.1
375350.7
-290.7
-20.9
239.1
147.5
WF
WW386SP-02AR
6544009.0
374944.1
-381.5
-36.2
267.8
240.0
WF
WW386SP-04AR
6544008.7
374944.2
-381.6
-40.5
246.1
192.0
WF
WW386SP-10AR
6544007.4
374945.2
-381.9
-32.4
179.5
209.8
WF
WW386SP-12AE
6544007.9
374945.5
-382.1
-61.4
184.1
420.6
WF
WW395-12AE
6543803.6
375247.1
-392.8
-50.7
241.1
359.4
WF
WW395-16AE
6543803.6
375247.3
-392.7
-58.3
239.9
548.2
WF
WW-SP2-011AR
6544121.0
374899.6
-354.4
-32.3
252.3
257.9
WF
WW-SP2-013AE
6544121.6
374899.9
-354.7
-54.1
270.3
380.9
04C
W4-350-002NR
6543585.3
375277.7
-340.0
35.0
229.5
42.0
04C
W4-350-005NR
6543543.6
375320.0
-341.0
10.0
229.5
45.0