TORONTO, Aug. 7, 2023
/CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF)
("Karora" or the "Corporation") is pleased to announce additional
significant results from gold exploration drilling targeting the
Fletcher Zone at the Beta Hunt Mine. A nine-hole drill program
aimed to test and infill the southern extension of the Fletcher
Shear Zone (FSZ) over 500 metres of strike north of the Alpha
Island Fault (AIF) commenced in June
2023 and is nearing completion. Assays from four of the nine
holes received to date intersected strong mineralization in the
targeted positions reinforcing a high level of confidence in the
continuity of the Fletcher mineralization. These latest results
continue to build upon previously reported results which indicate
the FSZ to be the third major gold system in the Hunt Block after
the Western Flanks and A Zone.
Fletcher Highlights1
- WF405SOD-51AE: 2.8 g/t over 52.0 metres and
11.8 g/t over 2.9 metres
- WF405SOD-01AE: 3.3 g/t over 9.0 metres and 2.5 g/t
over 10.5 metres
- BF1730-22AE: 3.1 g/t over 13.0 metres, 3.8 g/t over
9.0 metres and 2.5 g/t over 17.0 metres
- WF405SOD-52AE: 4.7 g/t over 11.0 metres
- Interval lengths are downhole widths. Estimated true widths
cannot be determined with available information.
Paul Andre Huet, Chairman &
CEO, commented: "Today we reported more strong results from the
Beta Hunt drilling program in our Fletcher South Zone. Our results
returned strong gold mineralization over very long intercepts,
including 2.8 g/t over 52 metres. We also identified new parallel
mineralized lodes in the footwall of the FSZ, including results of
4.7 g/t over 11.0 metres and 3.8 g/t over 9.0 metres.
To date we have completed eight of nine planned infill drill
holes targeting a 500 metre strike length of the Fletcher South
Zone just north of our strong results reported in April (6.5 g/t
over 26.0 metres and 46.5 g/t over 7.0 metres in hole BL1730-04AE -
see Karora news release, April 13,
2023). The results are very encouraging, demonstrating
mineralization continues along the Fletcher Shear Zone, as
targeted, as well as parallel mineralized lodes. This once again
illustrates the significant potential for ongoing discoveries as we
continue to deploy capital into our Beta Hunt drilling program.
Assays from the five remaining holes are expected to be received
during the third quarter and we await their results eagerly.
As we have stated numerous times, Beta Hunt is a very large
system which was underexplored historically due to cumbersome
royalty burdens. As we continue to drill out our targets with those
royalty burdens significantly reduced, we have been rewarded with
many new shear zones and new Mineral Resource additions to our
inventory each year. Beta Hunt's next resource estimate will be
released in the fourth quarter."
Fletcher Exploration Drilling
Update
Background
The gold mineralized Fletcher Shear Zone (FSZ) is considered a
structural analogue to the Western Flanks and A Zone deposits,
representing Beta Hunt's third major mineralized shear zone system
in the Hunt Block. The FSZ comprises foliated biotite-pyrite
altered and irregularly quartz veined basalt – similar alteration
to that found at Western Flanks. Previously reported drilling
results (Figure 1) outlined a steep, west-dipping zone over
150 metres in down dip extent and over 500 metres of strike with
potential to extend over a total strike length of 2 kilometres (See
Karora news releases dated September 16,
2019; January 24, 2022;
May 24, 2022).
In April 2023 Karora intersected
significant, high-grade mineralization in a single hole
(BL1730-04AE) drilled from the south side of the AIF through the
fault to test for the interpreted southern extension of the FSZ,
north of the AIF. This hole intersected strong mineralization over
two intervals in the targeted position for FSZ mineralization. This
result represented the widest and highest grade ever intersected
for the FSZ (see Karora news release April 13, 2023). Significant
intersections1. previously reported from this hole are
highlighted below:
- BL1730-04AE (Interval 1): 6.5 g/t over 26.0 metres,
including:
-
- 9.9 g/t over 6.0 metres
- 6.5 g/t over 17.0 metres
- BL1730-04AE (Interval 2): 46.5 g/t over 7.0 metres,
including 262 g/t over 0.7 metres
- Interval lengths are downhole widths. Estimated true
widths cannot be determined with available information.
5,000 metre Fletcher Infill Drill Program
A nine hole follow up, 5,000 metre diamond drill program was
designed to test and infill the southern end of the FSZ over a 500
metre strike length with holes spaced on a nominal 120 metre X 80
metre grid. The program commenced in June
2023 with eight of the nine holes completed to date.
Assay results have now been received for four of the nine holes.
All four holes have encountered significant mineralization in the
targeted FSZ position with additional mineralization intersected in
between the Western Flanks and the FSZ indicating potential for a
number of parallel mineralized lodes in the footwall to the FSZ
(Figures 1). Additional mineralization is also encountered in the
hanging wall of the FSZ. Significant intersections1.
received to date are highlighted below:
- WF405SOD-01AE:
-
- FSZ: 2.5 g/t over 10.5 metres
- Footwall Zone: 3.3 g/t over 9.0 metres
- WF405SOD-51AE:
-
- FSZ: 2.8 g/t over 52.0 metres, including 8.5 g/t over 3.0
metres
- Hanging wall Zone: 11.8 g/t over 2.9 metres and 7.1 g/t
over 3.5 metres
- BF1730-22AE:
-
- FSZ: 3.1 g/t over 13.0 metres and 3.8 g/t over 9.0 metres
- Footwall Lode: 2.5 g/t over 17.0 metres
- WF405SOD-52AE:
-
- FSZ: 2.2 g/t over 13.0 metres
- Footwall Lode: 4.7 g/t over 11.0 metres
These most recent drill assays have reinforced the FSZ as a
strong gold mineralized system with potential to develop into
another Western Flanks. Results to date show the predicted target
position of the FSZ to be supported by strong gold intersections
providing a high level of confidence in the continuity of the
mineralization. Preliminary interpretation of the southern end
shows the main FSZ to vary from 10 metres to 50 metres in
downhole widths. In addition to the FSZ, multiple mineralized shear
zones associated with the characteristic biotite-pyrite alteration
have been intersected in the hanging wall and footwall positions to
the FSZ. These present additional mining opportunities as part of
any potential mine development west of the Western Flanks.
Additional key points:
- The Fletcher South drilling covers only 25% of the of the
interpreted 2km strike of the FSZ, highlighting the significant
growth potential of this mineralized system.
- The reported intersections are 230 metres from existing nickel
development in the Beta Block and 150 metres north of the current
Larkin Mineral Reserve, presenting opportunities for using existing
and planned development to access the FSZ.
- The nickel potential associated with the interpreted trough
position above the FSZ has yet to be fully tested. As is frequently
practiced at Beta Hunt, testing for nickel can be executed
concurrently with further gold exploration.
Final assays from this program are expected to be received
during Q3. The results will be assessed for the potential to be
converted into a new Mineral Resource in the FSZ.
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 170,000-195,000 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 5 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. 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 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, timing for completion of capital
projects, timing for the commencement of mining, liquidity and
capital resources of Karora, organic growth profile and the
potential of the Beta Hunt Mine, 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.
Table 1: Beta Hunt Significant Gold Results for Fletcher Drilling July/August 2023
Target/
|
Hole ID
|
Sub
interval
|
From
(m)
|
To
(m)
|
Downhole
Interval
(m)
|
Estimated
True Width
(m)2.
|
Au
(g/t)1.
|
Fletcher
|
BF1730-22AE
|
|
248.0
|
265.0
|
17.0
|
|
2.5
|
Fletcher
|
BF1730-22AE
|
|
348.0
|
350.1
|
2.1
|
|
4.8
|
Fletcher
|
BF1730-22AE
|
|
405.0
|
408.0
|
3.0
|
|
3.9
|
Fletcher
|
BF1730-22AE
|
|
442.5
|
450.0
|
7.5
|
|
2.1
|
Fletcher
|
BF1730-22AE
|
|
497.0
|
503.0
|
6.0
|
|
2.6
|
Fletcher
|
BF1730-22AE
|
|
522.0
|
535.0
|
13.0
|
|
3.1
|
Fletcher
|
BF1730-22AE
|
|
553.0
|
562.0
|
9.0
|
|
3.8
|
Fletcher
|
WF405SOD-01AE
|
|
304.0
|
313.0
|
9.0
|
|
3.3
|
Fletcher
|
WF405SOD-01AE
|
|
348.0
|
351.5
|
3.5
|
|
3.6
|
Fletcher
|
WF405SOD-01AE
|
|
522.5
|
533.0
|
10.5
|
|
2.5
|
Fletcher
|
WF405SOD-51AE
|
|
50.0
|
56.0
|
6.0
|
|
3.2
|
Fletcher
|
WF405SOD-51AE
|
|
378.0
|
385.0
|
7.0
|
|
1.7
|
Fletcher
|
WF405SOD-51AE
|
|
429.0
|
433.0
|
4.0
|
|
4.1
|
Fletcher
|
WF405SOD-51AE
|
|
484.0
|
536.0
|
52.0
|
|
2.8
|
Fletcher
|
WF405SOD-51AE
|
including
|
|
|
3.0
|
|
8.5
|
Fletcher
|
WF405SOD-51AE
|
including
|
|
|
6.0
|
|
4.4
|
Fletcher
|
WF405SOD-51AE
|
|
549.5
|
552.4
|
2.9
|
|
11.8
|
Fletcher
|
WF405SOD-51AE
|
|
556.0
|
559.5
|
3.5
|
|
7.1
|
Fletcher
|
WF405SOD-52AE
|
|
280.0
|
282.0
|
2.0
|
|
11.2
|
Fletcher
|
WF405SOD-52AE
|
|
294.0
|
300.0
|
6.0
|
|
2.8
|
Fletcher
|
WF405SOD-52AE
|
|
332.0
|
339.0
|
7.0
|
|
2.8
|
Fletcher
|
WF405SOD-52AE
|
|
385.0
|
396.0
|
11.0
|
|
4.7
|
Fletcher
|
WF405SOD-52AE
|
|
507.0
|
510.0
|
3.0
|
|
7.4
|
Fletcher
|
WF405SOD-52AE
|
|
513.0
|
515.0
|
2.0
|
|
5.0
|
Fletcher
|
WF405SOD-52AE
|
|
556.0
|
569.0
|
13.0
|
|
2.2
|
1. Reported gold grades > 1.0 g/t downhole and gram
x metre > 10
2. Estimated True Width cannot be
estimated with available information
Table 2 Beta Hunt - Drillhole Collars associated with
Fletcher Gold Results July/August
2023
Target/
Prospect
|
Hole
ID
|
MGA_N
|
MGA_E
|
mRL
|
DIP
|
AZI
|
Total
Length
(m)
|
Fletcher
|
BF1730-22AE
|
6,543,246
|
375,359
|
-300.4
|
-39.1
|
265.5
|
579.7
|
Fletcher
|
WF405SOD-01AE
|
6,543,631
|
375,234
|
-399.7
|
-33.5
|
231.1
|
627.3
|
Fletcher
|
WF405SOD-51AE
|
6,543,632
|
375,234
|
-400.4
|
-21.6
|
217.1
|
570.5
|
Fletcher
|
WF405SOD-52AE
|
6,543,632
|
375,234
|
-400.4
|
-29.8
|
217.1
|
612.4
|
SOURCE Karora Resources Inc.