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BETA HUNT UNDERGROUND MINE

Beta Hunt Mine

Karora Resources owns 100% of the Beta Hunt Mine, a producing gold mine located in the prolific Kambalda mining district of Australia.

Beta Hunt Mine Overview

The Beta Hunt Mine, located 600 km from Perth in Kambalda, Western Australia, is a deposit with the very rare feature of hosting both gold and nickel resources in adjacent discrete mineralized zones. The mining tenements on which the Beta Hunt Mine is located are held by Gold Fields Limited. Karora Resources operates the Beta Hunt Mine by virtue of a sub-lease agreement with Gold Fields Limited.

History

The Kambalda mining district in Western Australia is a long-established major mining centre with excellent existing infrastructure, a skilled local workforce, and nickel and gold processing mills nearby. Beta Hunt was originally developed and operated by Western Mining Corporation (WMC) in the 1970's and the mine was sold to Gold Fields in 2001. In 2003, Reliance Mining Limited (RML) acquired the nickel rights and resumed production. 

Consolidated Minerals Limited acquired RML in 2005 and invested in both increasing resources and expanding production. The mine operated continuously until the end of 2008, when it was placed on care and maintenance due to the financial crisis and associated collapse in metal prices.

Transactions during the period 2001 - 2003 resulted in the separation of nickel rights from the gold rights. Salt Lake Mining subsequently acquired the property in 2013 and succeeded in re-combining the nickel and gold rights. Nickel operations were re-started in 2014. Initial gold production occurred in June to July 2014 then ceased and recommenced at the end of 2015. The mine has been in continuous operation since then. Karora Resources acquired 100% of SLM in 2016 under its previous business name RNC Minerals.

Exploration Opportunities

The Beta Hunt land package includes significant exploration opportunities at Beta Hunt to add to the resources alongside production. There are four main shear zones at Beta Hunt – Western Flanks, A Zone, East Alpha and Fletcher – providing significant potential for resource expansion at low cost and near mine infrastructure. 

Geology

Beta Hunt is situated within the central portion of the Norseman-Wiluna greenstone belt in a sequence of mafic/ultramafic and felsic rocks on the southwest flank of the Kambalda Dome. Gold mineralization occurs mainly in subvertical shear zones in the Lunnon Basalt and is characterized by shear and extensional quartz veining within a halo of biotite/pyrite alteration. Within these shear zones, coarse gold sometimes occurs where the shear zones intersect iron-rich sulphidic metasediments in the Lunnon Basalt or nickel sulphides at the base of the Kambalda Komatiite (ultramafics).

Nickel mineralization is hosted mainly by talc-carbonate and serpentine altered ultramafic rocks (Kambalda Komatiite) that overlie the Lunnon Basalt. The primary sulphide minerals are typically pyrrhotite > pentlandite > pyrite with trace chalcopyrite.

Mining

Beta Hunt is owner operated using conventional underground mining methods. 

Milling

Processing is conducted through Karora Resources’ Higginsville processing plant.

Beta Hunt Gold Mineral Resources

Beta Hunt Gold Mineral Resource Estimate 1,2,3,4

Resource1.2.3.4 Measured Indicated Measured & Inferred Inferred
  Kt g/t Koz Kt g/t Koz Kt g/t Koz Kt g/t Koz
Western Flanks 5 447 2.8 40 7,001 3.0 670 7,448 3.0 710 2481 3.1 250
A Zone6 254 2.7 22 2,403 2.7 212 2,657 2.7 234 1,628 3.0 156
Total 701 2.8 62 9,404 2.9 882 10,104 2.9 944 4,109 3.1 406

 

  1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.
  2. The Mineral Resource estimates include Inferred Mineral Resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is also no certainty that Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves once economic considerations are applied. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding
  3. Gold Mineral Resources are reported using a 1.6 g/t Au cut-off grade
  4. Mineral Resources described here are based on information compiled by Paul Ellison, Senior Geologist for Salt Lake Mining Pty.Ltd. Paul Ellison is an employee of Salt Lake and is a member of the Australasian Institute of Mining and Metallurgy (MAusIMM,).
  5. Mineral Resource Estimate as of 26 June 2019.
  6. Mineral Resource Estimate as of 9 August 2019

 

Beta Hunt Mine Gold Mineral Reserve as at November 1, 2019 1,2,3,4

Mining Area Proven Probable Total
  Tonnes
kt
Grade
g/t
Ounces
koz
Tonnes
kt
Grade
g/t
Ounces
koz
Tonnes
kt
Grade
g/t
Ounces
koz
Western Flanks 170 2.7 15 2,900 2.9 260 3,070 2.9 275
A Zone 81 2.9 7.6 300 2.4 23 381 25 31
Total 251 2.8 23 3,200 2.8 283 3,450 2.8 306

 

  1. The Mineral Reserve is reported at a 2.0g/t cut-off grade
  2. Key assumptions used in the economic evaluation include:
    1. a metal price of US$1,400 per oz gold and an exchange rate of 0.69 US$:A$;
    2. Metallurgical recovery of 94%;
    3. Operating Mining Costs, processing and G&A costs of A$111.71/tonne
  3. The Mineral Reserve is depleted for all mining to November 01, 2019.
  4. The tonnes and grades are stated to a number of significant digits reflecting the confidence of the estimate. Since each number is rounded individually, the table may show apparent inconsistencies between the sum of rounded components and the corresponding rounded total.

 

Beta Hunt Nickel Mineral Resources as at 1st February 2016 1,2,3,4

Nickel Classification Inventory (kt) Grade (Ni %) Contained Metal Nickel Tonnes (NiTs)
>=1% Ni Measured 96 4.6 5,550
Indicated 283 4.0 13,620
Total 379 4.42 15,840
Inferred 216 3.4 7,400

 

  1. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the Mineral Resources estimated will be converted into Mineral Reserves.
  2. The Mineral Resource estimates include Inferred Mineral Resources that are normally considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is also no certainty that Inferred Mineral Resources will be converted to Measured and Indicated categories through further drilling, or into Mineral Reserves once economic considerations are applied. Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding
  3. Nickel Mineral Resources are reported using a 1% Ni cut-off grade
  4. Mineral Resources described here has been prepared by Elizabeth Haren, MAusIMM CPGeo, of Haren Consulting Pty Ltd.
Technical Reports

Technical Report Western Australia Operations - Eastern Goldfields: Beta Hunt Mine and Higginsville Gold Operations