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HIGGINSVILLE GOLD OPERATIONS

Higginsville Mining

Higginsville Gold Operations Overview

Owned and operated by Karora Resources since June 10, 2019, the Higginsville Gold Operations ("HGO") are located approximately 75km south of the Beta Hunt Mine in Higginsville, Western Australia.

The operation includes a 1.4Mtpa processing plant, 192 mining tenements including the, Baloo, Pioneer, Fairplay North, Mitchell, Wills, Challenge and Mount Henry deposits.

History

Avoca Resources Limited (Avoca) initially purchased the Higginsville exploration assets from Gold Fields in June 2004. The Trident underground deposit, historically the largest deposit at HGO, was discovered by Avoca in 2004 with mining commencing at the deposit in 2007. In April 2007 Avoca raised A$125 million to commission a new process plant facility at Higginsville. In that same year Avoca purchased the neighbouring Chalice deposit from Chalice Gold Mines Limited. Gold production began in 2008 with the first gold pour on July 1, 2008.

Alacer Gold Corporation, a wholly owned subsidiary of Alacer Gold a company incorporated in Canada, acquired HGO after it merged with Avoca Resources Limited (Avoca) in 2011.

On October 29, 2013 Alacer Gold Corporations completed the sale of its Australian Business Unit, which included HGO and its assets, to Westgold Resources Pty Ltd who was a wholly owned subsidiary of Metals X Ltd at that time.

In July, 2015 Metals X acquired the Mt Henry Gold Project from Panoramic Resources Ltd and Matsa Resources Limited.

On December 1, 2016 Westgold Resources Limited demerged from Metals X Ltd. Avoca remained a subsidiary of Westgold Resources Limited and was part of the resultant demerger.

Karora Resources acquired HGO outright on June 10, 2019 from Westgold Resources Limited.

Geology

Higginsville is located almost entirely within the well-mineralized Archean Kalgoorlie Terrane, between the gold mining centres of Norseman and Saint Ives. The Archaean stratigraphy has a general northward trend comprising multiply deformed ultramafic – gabbro – basalt successions adjoined by sediments to the west and east. Shearing and faulted contacts are common. The units have been structurally repeated by east over west thrust faulting.

The majority of gold mineralization projects along the Trident line-of-lode and is hosted by Poseidon Gabbro and high MgO dyke complexes. Mineralization is hosted within or marginal to quartz veining and is structurally and lithologically controlled. Higginsville is also host to significant palaeochannel mineralization. Mineralized zones comprise both placer gold, normally near the base of the channel-fill sequences, and chemically-precipitated secondary gold within the channel-fill materials and underlying saprolite. These gold concentrations commonly overlie, or are adjacent to, primary mineralized zones within Archaean bedrock.

Mining

Currently, Karora is mining from two open pits at Higginsville: the Baloo and Fairplay North open pit mines.

Milling

Processing is conducted through Karora Resources' Higginsville processing plant.

Higginsville Historical Mineral Resources

On October 2, 2018 Westgold published a gold Mineral Resource estimation and Mineral Reserve update effective June 30, 2018 (www.westgold.com.au).

A qualified person has not done sufficient work on behalf of Karora to classify the historical estimates as current mineral resources or mineral reserves and Karora is not treating the historical estimates as current mineral resources or mineral reserves.

 HGO Historical Gold Mineral Resources as at June 30, 2018 (the Baloo deposit is included in the Polar Bear Project)

Higginsville Gold Operations
Historical Mineral Resource Statement - Rounded for Reporting 30/06/2018
  Measured Indicated Inferred Total
Project

Tonnes
('000s)

Grade

Ounces
Au

('000s)

Tonnes
('000s)

Grade

Ounces
Au

('000s)

Tonnes
('000s)

Grade

Ounces
Au

('000s)

Tonnes
('000s)

Grade

Ounces
Au

('000s)

Trident 620 3.8 75 571 5.2 96 714 4.51 104 1904 4.48 275
Chalice 266 4 35 501 3.6 57 186 4.15 25 953 3.8 116
Corona - Fairplay 2 - 0 944 2.3 69 282 2.95 27 1,228 2.42 96
Vine - - - 190 2.1 13 468 2.04 31 658 2.07 44
Lake Cowan 71 1.6 4 1,191 1.5 58 528 1.34 23 1,790 1.47 85
Two Boys - - - 375 2 25 203 2.88 19 578 2.33 43
Mount Henry 1,301 1.9 79 8,147 1.7 453 898 1.83 53 10,347 1.76 584
Paleochannels - - - 1,474 2.2 102 208 2.13 14 1,682 2.15 116
Greater Eundynie - - - - - - 683 1.86 41 683 1.86 41
Polar Bear - - - 1,160 1.9 71 5260 1.67 282 6,240 1.71 353
Musket 107 2.3 8 376 2.3 28 601 1.6 31 1,084 1.92 67
Other - - - 485 1.5 24 603 1.72 33 1,087 1.64 57
Stockpiles 751 0.9 21 258 1 8 - - - 1,009 0.89 29
Total 3,118 2.20 220 15,672 2 1,004 10,634 1.99 681 29,424 2.01 1,906

 

HGO Historical Gold Mineral Reserves as at June 30, 2018

Historical Mineral Reserve Statement - Rounded for Reporting 30/06/2018
  Proven Probable Total
Project

Tonnes
('000s)

Grade

Ounces
Au

('000s)

Tonnes
('000s)

Grade

Ounces
Au

('000s)

Tonnes
('000s)

Grade

Ounces
Au

('000s)

Trident - - - - - - - - -
Chalice - - - - - - - - -
Corona - Fairplay - - - 286 2.91 27 286 2.91 27
Vine - - - - - - - - -
Lake Cowan - - - 132 1.97 8 132 1.97 8
Two Boys - - - 57 2.12 4 57 2.12 4
Mount Henry - - - 3,236 1.79 186 3,236 1.79 186
Paleochannels - - - 924 2.06 61 924 2.06 61
Greater Eundynie - - - - - - - - -
Polar Bear - - - 707 1.87 43 707 1.87 43
Musket - - - 244 2.42 19 244 2.42 19
Other - - - 193 1.66 10 193 1.66 10
Stockpiles 29 3.63 3 136 1.27 6 164 1.68 9
Total 29 3.63 3 5,916 1.91 363 5,945 1.92 367

 

  1. Subsequent to the compilation of the Mineral Resources and Ore Reserve Statement, HGO continued to mine. For the period July 1, 2018 to June 10, 2019, a total of 905kt at 1.6 g/t Au (47kozs) was mined from the Mt Henry deposit.
  2. The information is extracted from the report entitled '2018 Annual Update of Mineral Resources & Ore Reserves' dated on October 2, 2018 and is available to view on Westgold Resources Ltd's website (www.westgold.com.au) and the ASX (www.asx.com.au). Mineral Resources are quoted inclusive of Ore Reserves.
  3. Karora confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement. A qualified person has not done sufficient work on behalf of Karora to classify the historical estimate noted here and in Tables 1 and 2 as current mineral resources or mineral reserves and Karora is not treating the historical estimates as current mineral resources or mineral reserves.
  4. Karora plans to undertake further evaluation of the Higginsville deposits. Further updates or revisions will be reported under and in accordance with the JORC Code 2012 and NI 43-101
NOTE: The historical reserve information above is extracted from the report entitled ‘2018 Annual Update of Mineral Resources & Ore Reserves’ dated on October 2, 2018 and is available to view on Westgold Resources Limited’s website (www.westgold.com.au) and the ASX (www.asx.com.au). Mineral Resources are quoted inclusive of Ore Reserves. Karora confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement. A qualified person has not done sufficient work on behalf of Karora to classify the historical estimate noted as current mineral resources or mineral reserves and Karora is not treating the historical estimates as current mineral resources or mineral reserves.

 

Technical Reports

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