Drilling at Spargos Reward Extends High Grade Gold Plunging Shoot to Over 300 metres Down-Plunge With Intersection of 6.1 g/t Over 14 metres as Resource Definition Drilling Completed Ahead of Resource Update
High grade diamond drill result1,2 confirms interpreted high grade gold plunging shoot thesis by extending plunging shoot to over 300m down-plunge. The shoot remains open down-plunge.
SPDD0003: 6.1 g/t over 14.0 metres, including 8.6 g/t over 5.7 metres
This drill intersection supports the plunging shoot interpretation associated with previously announced (see Karora news release, November 18, 2020), near-surface high grade intersections at the south end of the deposit which included:
SPRC0012: 27.3 g/t over 15.0 metres, including 168.0 g/t over 1.3 metres
SPRC0019: 8.0 g/t over 19.0 metres, including 20.6 g/t over 2.0 metres
SPRC0026: 29.8 g/t over 19.0 m, including 99.5 g/t over 5.0 metres
All outstanding (new) drill results from the infill drilling1,2 program designed to support resource modelling and mine design for open-pit evaluation have been received. Significant gold results include:
SPDD0001: 14.0 g/t over 6.3 metres
SPDD0002: 12.7 g/t over 4.0 metres, and 22.3 g/t over 1.7 metres
SPRC0069: 11.0 g/t over 5.0 metres
SPRC0065: 9.0 g/t over 12.0 metres
SPRC0054: 8.1 g/t over 5.0 metres
SPRC0062: 10.2 g/t over 5.0 metres
A new Spargos resource is expected to be published in the second quarter of 2021.
TORONTO, March 1, 2021 – Karora Resources Inc. (TSX: KRR) (“Karora” or the “Corporation”) is pleased to announce completion of its 12,000 metre drill program at Spargos Reward Gold Project (“Spargos”). The drilling has delineated high grade gold mineralization within approximately 100 metres of surface along an approximate 400 metre strike length which will support the commencement of mining operations at Spargos around mid-year.
Paul Andre Huet, Chairman & CEO, commented: “I am extremely pleased with the outcome of our maiden drilling program at Spargos. In mid-November, we announced some of the best drill results in Karora’s history and today we have confirmed a major extension of the high grade plunging shoot thesis we originally outlined with our first pass results. This is a new shoot, not previously recognized by previous owners and highlights both near surface high grade mineralization as well as the underground opportunity that exists at Spargos.
Now that our extended Resource Definition drilling program is complete, I am looking forward to our upcoming Mineral Resource estimate and the initiation of mining activities for Spargos in the second quarter. Spargos is expected to provide high grade gold feed for the Higginsville plant in the second half of 2021, contributing to our expectation that gold grades will increase as we progress through the year.”
Infill RC/Geotechnical Diamond Drilling
The Infill RC drill program designed to upgrade the Historical Mineral Resource and support resource modelling for open pit evaluation has been completed. Drilling totalled 107 holes for 9,590 metres. In addition, two geotechnical diamond holes were completed to support open pit mine design assumptions. Drilling targeted mineralization over 400 metres of strike to a depth of approximating 100 metres below surface – in line with expectations for open-pit mine depths. All assay results from this drilling have now been received, noting that turnaround on assay results was delayed due to backlogs at laboratories in the region reflecting a rapid increase in exploration and new mining projects in the region and COVID-19 related issues. Assay highlights from this program are listed below, including some previously released drill intersections.
Highlighted gold intersections from the drilling3,4 are listed in order below:
New results
SPDD00015: 14.0 g/t over 6.3 metres
SPDD00025: 12.7 g/t over 4.0 metres, and 22.3 g/t over 1.7 metres
SPDD0003: 6.1 g/t over 14.0 metres; including 8.6 g/t over 5.7 metres
SPRC0069: 11.0 g/t over 5.0 metres
SPRC0065: 9.0 g/t over 12.0 metres
SPRC0054: 8.1 g/t over 5.0 metres
SPRC0062: 10.2 g/t over 5.0 metres
Previously released (Karora news release, November 18, 2020)
SPRC0012: 27.3 g/t over 15.0 metres, including 168.0 g/t over 1.3 metres
SPRC0013: 5.7 g/t over 8.0 metres
SPRC0019: 8.0 g/t over 19.0 metres, including 20.6 g/t over 2.0 metres
SPRC0026: 29.8 g/t over 19.0 m, including 99.5 g/t over 5.0 metres
SPRC0028: 29.8 g/t over 3.0 metres
SPRC0030: 6.9 g/t over 8.0 metres
SPRC0032: 8.7g/t over 16.0 metres
1.
Downhole intervals. Estimated true widths are approximately 70% of the downhole interval
2.
Tables showing complete drill results and drill hole locations can be found at the end of this news release.
3.
Geotechnical diamond holes
An updated Spargos gold Mineral Resource is planned for release in the second quarter of 2021 and remains in line with the commencement of mining at Spargos.
High Grade Gold Plunging Shoot Target
Four diamond holes totalling 1,102 metres were drilled to test the interpretation and extent of high grade gold mineralization controlled by north plunging shoots within the Spargos Reward mineralized system. These shoots were first identified from interpreting historical drill results and underground mine data. Current interpretation is of four parallel high-grade shoots (Figure 1), with the Stage 1 diamond drilling targeted to extend and/or test the interpreted position of three shoots.
Results to date were received for SPDD003 which targeted the down-plunge extension of the very high gold grades previously intersected at the southern end of the deposit from the initial infill drill holes (Karora news release, November 18, 2020). The new results confirm the current interpretation which shows high grade gold mineralization extending over a down-plunge distance of over 300 metres. The down-plunge extension of this shoot remains open at depth and highlights the underground growth opportunity remaining to be tested. Results for the remaining three diamond holes are pending.
Spargos Project – Background
The Spargos Reward project tenements cover 33 square kilometres, located in the Eastern Goldfields of Western Australia, just 65 kilometres north of Karora’s Higginsville mill by road. The project contains an existing historical (JORC (2012) gold Mineral Resource Estimate6 of 112,000 oz (785,800 tonnes @ 4.4 g/t) indicated resource and 19,000 oz (151,000 tonnes @ 4.0 g/t) inferred resource, There are also a number of historic workings within the project, most notable of which is the historic Spargos Reward Gold Mine which produced 105,397 tonnes at an average grade of 8.56 g/t Au in the 1930s and 1940s, with limited gold extraction since that time. Karora acquired the Spargos Reward project in August 2020 (see Karora news release dated August 7, 2020)
The Spargos gold mineralized system is positioned on the contact between meta-greywackes to the east and strongly altered sodic felsic volcaniclastics to the west along a major north trending shear zone which dips steeply to the east. Gold mineralization is hosted in a number of positions with the bulk of the identified mineralization occurring as disseminations and stringer zones of quartz-biotite-amphibole-pyrite-arsenopyrite alteration. The deposit is characterized by the absence of quartz veining.
The gold mineralized zones can be broken down into two key zones – Main Lode and a second West Zone. A review of the historical mine mapping and data indicate high grade mineralization is associated with shallow, north plunging shoots controlled by drag folds recognized along the meta-greywackes and western meta-volcaniclastics contact. The interpreted down-plunge position of high grade mineralization is virtually untested by drilling and represents significant exploration potential to grow the existing historical mineral resource.
4.
See www.coronaresources.com.au, Feb 26, 2020. A qualified person has not done sufficient work on behalf of Karora to classify the historical estimate as current mineral resources or mineral reserves, and Karora is not treating the historical estimates as current mineral resources or mineral reserves.
Spargos Reward – Resource Update
A revised gold Mineral Resource statement is expected in the second quarter of 2021 which remains in line with the Corporation’s targeted date for commencement of mining at Spargos. Initial open pit design, flora and fauna surveys, waste characterization and infrastructure location have all been completed and will form part of the final mine plan submitted for mining approval with the appropriate authorities.
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.
Higginsville: All RC and diamond drill sampling is conducted by Karora personnel. Samples for gold analysis are shipped to Bureau Veritas Laboratories of Kalgoorlie and Perth for preparation and assaying by 40 gram fire assay analytical method. All RC drill samples submitted for assay include Certified Reference Material (“CRM”) and coarse blank every 25th down hole metre. Duplicate samples are taken every 50th metre. All diamond drill samples submitted for assay include Certified Reference Material (“CRM”) or coarse blank approximately every 10th sample down hole, equating to 10 in every 100 samples. The diamond drill samples contained no duplicate samples.The lab is also required to undertake a minimum of 1 in 45 wet screens on pulverised samples to ensure a minimum 90% passing at -75µm.
Where problems have been identified in QA/QC checks, Karora personnel and the Bureau Veritas 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 gold Mineral Resource and Reserve and prospective land package totaling approximately 1,900 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.
This news release contains “forward-looking information” including without limitation statements relating to 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.
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: Spargos Reward Drilling, November – December 2020 – Significant Results
Hole ID
Sub interval
From (m)
To (m)
Downhole Interval (m)
Au (g/t)1,2
SPDD0001
2
3
1.0
2.37
140.5
149
8.5
11.01
Including
142.75
149
6.3
14.0
160
160.41
0
1.1
165.25
165.58
0.3
1.11
168.6
168.9
0.3
2.45
SPDD0002
140
140.5
0.5
3.37
144.1
144.5
0.4
1.6
153.9
155.6
1.7
22.25
161
165
4.0
12.68
177
177.4
0.4
1.00
SPDD0003
172.8
173.5
0.7
1.35
188
202
14.0
6.06
including
196.3
202
5.7
8.6
SPRC0033
104
108
4.0
4.8
111
112
1.0
1.03
120
121
1.0
8.33
SPRC0034
7
11
4.0
2.48
29
36
7.0
2.21
SPRC0035
43
53
10.0
3.49
SPRC0036
71
75
4.0
1.2
80
81
1.0
1.75
84
88
4.0
1.94
SPRC0037
72
75
3.0
1.32
82
83
1.0
3.58
96
97
1.0
1.92
103
104
1.0
1.46
SPRC0037b
54
55
1.0
1.77
59
62
3.0
0.86
81
84
3.0
1.23
92
95
3.0
3.11
SPRC0038b
105
106
1.0
1.58
109
110
1.0
2.96
116
118
2.0
2.29
SPRC0039b
0
1
1.0
1.22
122
123
1.0
1.06
126
129
3.0
4.76
SPRC0041
13
14
1.0
1.19
27
28
1.0
1.09
38
42
4.0
2.73
SPRC0042
1
2
1.0
1.33
51
56
5.0
4.65
SPRC0044
37
38
1.0
2.47
83
84
1.0
4.72
SPRC0046
29
30
1.0
1.43
SPRC0047
28
29
1.0
1.19
32
33
1.0
1.28
36
39
3.0
2.84
48
49
1.0
1.21
SPRC0048
29
30
1.0
1.05
SPRC0050
68
75
7.0
2.41
79
83
4.0
3.82
SPRC0051
0
1
1.0
1.83
30
31
1.0
1.29
99
103
4.0
3.82
SPRC0052
120
122
2.0
1.97
136
138
2.0
4.48
SPRC0054
43
48
5.0
8.08
SPRC0055
0
1
1.0
1.3
SPRC0056
27
28
1.0
1.04
70
72
2.0
1.43
SPRC0057
81
83
2.0
6.04
SPRC0058
93
94
1.0
1.3
SPRC0060
39
47
8.0
1.4
SPRC0061
0
3
3.0
8.48
50
54
4.0
8.07
60
61
1.0
1.04
73
74
1.0
1.00
SPRC0062
0
1
1.0
3.51
39
40
1.0
1.01
58
62
4.0
1.35
68
73
5.0
10.17
SPRC0063
12
13
1.0
1.98
68
69
1.0
1.44
SPRC0064
92
93
1.0
2.28
SPRC0065
113
125
12.0
8.96
128
129
1.0
1.26
134
135
1.0
3.88
SPRC0067
38
41
3.0
2.38
48
56
8.0
3.25
SPRC0068
0
1
1.0
1.19
34
38
4.0
1.05
41
61
20.0
3.11
SPRC0069
52
57
5.0
10.98
SPRC0070
84
85
1.0
1.16
SPRC0074
33
34
1.0
1.02
SPRC0075
36
54
18.0
2.08
65
66
1.0
2.26
79
80
1.0
1.24
84
85
1.0
2.26
SPRC0076
67
68
1.0
7.09
SPRC0077
92
93
1.0
1.9
SPRC0078
17
19
2.0
1.71
24
25
1.0
1.18
31
37
6.0
4.82
SPRC0079
43
45
2.0
3.01
54
58
4.0
0.94
SPRC0080
18
21
3.0
2.18
26
27
1.0
1.08
37
38
1.0
1.58
46
47
1.0
1.77
62
63
1.0
1.82
73
75
2.0
1.71
SPRC0081
69
75
6.0
3.79
SPRC0082
90
92
2.0
5.61
SPRC0084
48
49
1.0
1.33
SPRC0085
35
36
1.0
1.1
48
49
1.0
1.13
74
75
1.0
1.44
85
86
1.0
1.64
SPRC0087
83
84
1.0
1.92
121
122
1.0
1.25
127
128
1.0
2.79
SPRC0088
90
91
1.0
1.2
112
120
8.0
2.73
124
127
3.0
1.02
SPRC0089
8
9
1.0
1.16
SPRC0090
38
39
1.0
1.01
SPRC0091
81
82
1.0
3.26
SPRC0092
61
62
1.0
1.68
65
66
1.0
1.35
73
74
1.0
1.11
84
85
1.0
1.11
104
105
1.0
1.36
113
114
1.0
1.58
SPRC0095
14
16
2.0
1.15
SPRC0096
0
1
1.0
1.87
SPRC0097
69
70
1.0
1.09
82
83
1.0
2.08
SPRC0098
92
93
1.0
1.9
100
101
1.0
3.59
SPRC0100
79
80
1.0
1.06
SPRC0101
85
86
1.0
1.05
SPRC0102
23
25
2.0
2.22
33
35
2.0
4.04
SPRC0103
44
45
1.0
1.48
SPRC0104
10
13
3.0
1.49
16
17
1.0
5.08
46
47
1.0
2.55
SPRC0106
57
58
1.0
2.99
SPRC0107
31
35
4.0
1.64
47
48
1.0
2.7
SPRC0111
39
40
1.0
1.33
45
46
1.0
1.26
SPRC0112
42
43
1.0
8.74
SPRC0113
76
79
3.0
1.93
SPRC0122
80
84
4.0
1.47
SPRC0123
41
42
1.0
2.29
SPRC0124
57
58
1.0
1.14
SPRC0125
25
26
1.0
2.67
1.
Downhole intervals. Estimated true widths are approximately 70% of the downhole interval.
2.
Significant results reported as >1.0g/t Au over 1.0 metres
Table 2: Spargos Reward Drilling, November – December 2020
The content published on Insidexploration.com is based on current events, historical data, company news releases, sedar filings, technical reports and information provided by the companies we work with. These publications may contain forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.
The publications on Insidexploration.com are for informational and entertainment purposes only and are not a recommendation to buy or sell any security. Always do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Please be sure to read company profiles on www.SEDAR.com for important risk disclosures.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.Ok