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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

Highlights:

  • 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

 

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.

  • A new Spargos resource is expected to be published in the second quarter of 2021.

TORONTO, March 1, 2021 /CNW/ - 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

 

3.

Downhole intervals. Estimated true widths are approximately 70% of the downhole interval

4.

Tables showing complete drill results and drill hole locations can be found at the end of this news release.

5.

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.

Figure 1: Gram X metre (Main Zone) longsection of Spargos Reward looking west. Figure highlights recent significant gold results and interpreted down-plunge shoots (CNW Group/Karora Resources Inc.)

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.

6.

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.

Cautionary Statement Concerning Forward-Looking Statements

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

Hole ID

Northing

Easting

mRL

AZ

DIP

Total
Length (m)

SPDD0001

6543202.465

354267.1

424.071

272.356

-59.91

195.44

SPDD0002

6543215.111

354104.4

426.471

91.356

-60.05

177.4

SPDD0003

6543200.3

354071.8

425.945

89.416

-55.48

240.07

SPRC0033

6543100.201

354238.5

421.429

269.176

-53.91

146

SPRC0034

6543120.136

354146.2

423.562

88.256

-45.75

36

SPRC0035

6543124.607

354204.7

424.813

264.056

-42.53

72

SPRC0036

6543106.845

354209.5

421.951

269.106

-57.09

94

SPRC0037

6543110.198

354222.6

421.952

243.926

-55.32

107

SPRC0037b

6543108.819

354221.2

421.947

270.426

-54.07

108

SPRC0038b

6543114.25

354235.2

422.192

271.286

-56.07

130

SPRC0039b

6543120.267

354248

422.559

268.626

-55.75

148

SPRC0041

6543140.009

354144.2

424.708

96.956

-47.4

44

SPRC0042

6543140.179

354206.4

424.865

271.026

-51.19

116

SPRC0044

6543140.118

354227.2

424.776

270.246

-55.44

130

SPRC0046

6543159.9

354141.9

425.378

95.136

-45.53

30

SPRC0047

6543159.795

354198.9

424.221

270.986

-46.37

60

SPRC0048

6543160.298

354201.6

424.071

270.146

-55.48

45

SPRC0050

6543160.029

354223.3

424.817

267.536

-55.41

120

SPRC0051

6543159.988

354235.8

424.961

268.076

-56.08

138

SPRC0052

6543160.199

354249.3

424.014

268.586

-55.94

150

SPRC0054

6543179.901

354211.2

424.644

266.916

-42.31

80

SPRC0055

6543180.05

354214.2

424.684

267.906

-50.43

55

SPRC0056

6543179.86

354222.2

424.962

268.156

-55.41

72

SPRC0057

6543179.788

354233.4

424.806

268.496

-56.24

83

SPRC0058

6543179.453

354245.2

424.475

269.926

-55.95

94

SPRC0060

6543200.058

354132.3

426.305

94.686

-38.8

54

SPRC0061

6543200.031

354217.4

425.637

272.446

-47.94

74

SPRC0062

6543200.615

354224.8

424.868

273.366

-55.75

73

SPRC0063

6543200.313

354231

424.952

274.426

-55.73

69

SPRC0064

6543199.358

354244.5

424.937

274.816

-56.09

93

SPRC0065

6543197.959

354259.7

423.955

271.816

-55.74

135

SPRC0067

6543220.184

354218.4

425.467

270.436

-44.79

56

SPRC0068

6543220.276

354222.1

425.426

270.346

-50.31

61

SPRC0069

6543220.079

354230.9

425.179

271.936

-55.59

57

SPRC0070

6543225.262

354250.3

424.358

267.486

-56.07

85

SPRC0074

6543241.192

354185

426.323

269.976

-55.22

48

SPRC0075

6543240.018

354214

426.077

271.396

-57.5

90

SPRC0076

6543240.839

354241.2

425.192

271.106

-56.14

68

SPRC0077

6543240.369

354259.8

424.747

272.826

-56.26

93

SPRC0078

6543259.97

354177.6

426.389

270.946

-54.77

48

SPRC0079

6543259.761

354191.1

426.55

271.336

-54.91

60

SPRC0080

6543259.329

354211.2

426.551

272.056

-54.74

100

SPRC0081

6543260.213

354241.6

425.668

270.766

-56.09

75

SPRC0082

6543259.889

354260

425.455

271.386

-55.5

92

SPRC0084

6543279.416

354196.4

427.045

270.186

-55.31

56

SPRC0085

6543279.574

354213

427.226

270.546

-53.87

90

SPRC0087

6543279.875

354249.1

426.356

269.826

-60.27

148

SPRC0088

6543280.138

354267.4

425.638

270.466

-60.15

148

SPRC0089

6543299.757

354172.2

428.046

268.586

-54.69

24

SPRC0090

6543300.054

354192.4

427.682

272.226

-55.06

54

SPRC0091

6543299.834

354221.5

427.901

271.016

-54.53

100

SPRC0092

6543300.058

354245

426.897

272.786

-56.56

152

SPRC0095

6543319.749

354182.1

428.558

270.406

-55.03

38

SPRC0096

6543319.671

354191.5

428.26

268.176

-54.91

54

SPRC0097

6543319.969

354221.7

428.398

267.986

-55.48

96

SPRC0098

6543329.681

354241.5

428.394

261.52

-54.24

156

SPRC0100

6543340.201

354113.8

431.774

90

-60

150

SPRC0101

6543340.143

354132.8

432.214

90

-60

150

SPRC0102

6543339.902

354152

431.398

92.216

-59.35

135

SPRC0103

6543340.005

354175.1

430.175

89.386

-59.47

90

SPRC0104

6543339.684

354193.6

429.086

90.176

-59.94

50

SPRC0106

6543360.172

354130.8

433.286

90.363

-54.106

160

SPRC0107

6543360.653

354149.6

433.843

90

-55

130

SPRC0111

6543379.604

354195

431.215

271.006

-55.9

54

SPRC0112

6543379.44

354214.1

430.648

270.176

-55.59

80

SPRC0113

6543379.151

354244.7

429.907

268.436

-56.21

126

SPRC0122

6543009.789

354098.8

420.487

91.186

-60.92

139

SPRC0123

6543010.096

354118

420.391

92.066

-60.6

130

SPRC0124

6543009.646

354129.6

420.059

93.916

-61.92

110

SPRC0125

6543009.739

354139.1

419.941

89.826

-62.31

90

 

SOURCE Karora Resources Inc.

For further information: Rob Buchanan, Director, Investor Relations, T: (416) 363-0649, www.karoraresources.com