- At Beta Hunt:
- Gold Measured and Indicated Mineral Resources increased by 18% to 1.6 million ounces
- Measured and Indicated Mineral Resource grade at Western Flanks, Beta Hunt's largest zone, increased by 12% from 2.6 g/t to 2.9 g/t (1.1 million ounces)
- Gold Proven and Probable Mineral Reserve increased by 6% to 573,000 ounces
- Consolidated Gold Measured and Indicated Mineral Resource inventory increased by 9% to 3.2 million ounces net of mining depletion
- At Higginsville:
- Maiden Probable Mineral Reserve produced for the Spargos deposit comprising 437,000 tonnes grading 4.6 g/t for 64,000 ounces
- The expanded Mineral Resource and Reserves further support extending mine life at Karora's flagship Beta Hunt mine
Western Flanks is the engine room of Beta Hunt, providing the bulk of our mined tonnes and ounces as our largest mineralized shear zone. In 2023, we continued to significantly upgrade this zone, resulting in a 16% increase (143,000 ounces) in M&I Resources, net of mining depletion. A terrific result.
I am also very pleased to announce a 7% increase to the Beta Hunt Gold Proven and Probable Reserve and an 8% grade improvement (to 2.7 g/t from 2.5 g/t). Our new Reserve adds 35,000 ounces, net of mining depletion, compared to our prior estimate. We believe our new increased total of 573,000 ounces of Proven and Probable Mineral Reserves positions us well for many years of mining ahead. As is the case with underground operations, we will continue to expand our resource base to feed a rolling, and expanding, multi-year reserve base.
Beta Hunt is a very large system comprised of extensive, wide and continuous mineralized shear zones which have been extended by drilling both along strike and at depth. Karora has also discovered numerous parallel shear zones over the last several years, adding maiden Mineral Resources at Larkin, Mason and Cowcill, with Fletcher set to be the next exciting addition. Given the tremendous drill results at Fletcher to date (highlighted by 46.5 g/t over 7.0 metres in hole BL1730-04AE – see Karora news release dated
As can be seen in Figure 1, we have built a consistent and successful track record of resource growth via the drill bit at Beta Hunt, with inventories rising by more than 550% since 2016. This is a direct result of our aggressive underground drilling program leveraging the +400km of extensive infrastructure already in place and enabled by significant reductions made to onerous royalty burdens in 2020. As we continue with our program in 2024, we look forward to potential new shear zone discoveries and extensions of our existing zones.
Our success in the continued expansion of the Beta Hunt Mineral Resource is a critical step enabling mine life extensions as we increase production rates. Once the expanded Beta Hunt mining capacity is fully ramped up to its targeted capacity of 2 Mtpa, we expect that approximately 80% of our mill feed will come from our flagship Beta Hunt mine.
On the nickel front, drilling aimed at upgrading our high grade (~3.0% Ni)
On a consolidated basis, our gold M&I Resource grew by 9% to 3.2 million ounces and Inferred Resources grew by 4% to 1.5 million ounces, net of mining depletion. While drilling at Higginsville was focused primarily on production drilling, highlights include reserve growth at Spargos as we prepare to begin underground operations in 2024."
The updated Gold Mineral Resource is effective as of
The updated Beta Hunt Mineral Resource estimate is net of mine production depletion of 1.2 million tonnes grading 2.6 g/t for 101,000 ounces over the period
Table 1: Beta Hunt Gold Mineral Resources as at
Note: Refer to detailed footnotes below
Sept - 2023 | Measured | Indicated | Measured & Indicated | Inferred | ||||||||
Mineral Resource | Kt | g/t | Koz | Kt | g/t | Koz | Kt | g/t | Koz | Kt | g/t | Koz |
Western Flanks | 859 | 2.9 | 79 | 10,436 | 2.9 | 980 | 11,295 | 2.9 | 1,059 | 6,364 | 2.9 | 587 |
A Zone | 419 | 2.7 | 37 | 4,143 | 2.4 | 317 | 4,563 | 2.4 | 354 | 3,927 | 2.3 | 296 |
Larkin | - | - | - | 2,028 | 2.6 | 168 | 2,028 | 2.6 | 168 | 1,761 | 2.4 | 134 |
Mason | - | - | - | - | - | - | - | 0.0 | - | 778 | 2.7 | 67 |
Cowcill | - | - | - | 248 | 2.4 | 19 | 248 | 2.4 | 19 | 35 | 2.9 | 3 |
Total | 1,278 | 2.8 | 116 | 16,855 | 2.7 | 1,484 | 18,133 | 2.7 | 1,600 | 12,865 | 2.6 | 1,086 |
The new Mineral Resource reflects the results from new drilling designed to extend and upgrade the
Western Flanks: Resource definition and exploration drilling focused on upgrading the northern and southern down-dip positions of the existing Mineral Resource, up to 900 metres below surface. This work resulted in an upgrade to the previously reported Inferred Mineral Resource. Drilling also identified an offset to the Main Shear mineralization from approximately 750 metres below surface. The offset Main Shear mineralization remains open at depth (see Karora news release dated
The Western Flanks M&I Resource increased by 16% (143,000 ounces) with the Inferred Resource decreasing by 24% (-188,000 ounces), the latter the result of the 2023 drilling focus on resource conversion. Significantly, overall M&I Resource grade increased 12% (+0.3 g/t) reflecting results from new drilling and domaining refinements to the hangingwall mineralization to the Main Shear.
A Zone: Drilling in this zone concentrated on upgrading the northern margin and down-dip central position of the existing resource. This work resulted in the A Zone M&I Resource increasing by 16% (49,000 ounces) and the Inferred Resource increasing by 46% (93,000 ounces). M&I Resource grades at A zone increased by 4%.
Larkin: Drilling focused on upgrading the northern margin of the existing Mineral Resource adjacent the Alpha Island Fault. Previous work had identified this area as suitable for additional drilling to drive resource conversion. The additional drilling increased confidence in the continuity of the mineralization supporting a revised geological interpretation of the north-end of the Larkin mineralization resulting in a significant resource upgrade compared to the previously reported
Cowcill: Previously included as part of the Larkin Mineral Resource and now reported as a separate Mineral Resource, the Cowcill Mineral Resource is offset mineralization on the eastern side of the Larkin Mineral Resource and is interpreted as a separate structural domain to Larkin. No new drilling was completed since the previous resource update (as part of Larkin) and the Mineral Resource remains unchanged.
Mason: Results from exploration drilling targeting the
The updated Gold Mineral Reserve is effective as of
The updated Gold Proven and Probable Mineral Reserve now totals 573,000 ounces, representing a 6% (35,000 ounces) increase from the,
Grade improvements of 8% (from 2.5 g/t to 2.7 g/t) were recorded for the updated Proven and Probable Mineral Reserve.
Table 2: Beta Hunt Gold Mineral Reserves as at
Note: Refer to detailed footnotes below
Sep-2023 Mineral | Proven | Probable | Proven & Probable | ||||||
Kt | g/t | Koz | Kt | g/t | Koz | Kt | g/t | Koz | |
Western Flanks | 198 | 2.4 | 15 | 4,340 | 2.8 | 390 | 4,538 | 2.8 | 405 |
A Zone | 118 | 3.3 | 13 | 1,107 | 2.4 | 86 | 1,225 | 2.5 | 99 |
Larkin | - | - | - | 814 | 2.6 | 69 | 814 | 2.6 | 69 |
Total | 316 | 2.7 | 28 | 6,260 | 2.7 | 545 | 6,577 | 2.7 | 573 |
The 2023 Beta Hunt Reserve additions were greater than the proceeding year's mine production with drilling improving confidence and adding Mineral Reserves in A Zone, Western Flanks and Larkin.
For 2024, gold drilling will continue to focus on upgrading Inferred Resources to Indicated status, providing the opportunity for increased Mineral Reserves. Exploration drilling is also planned, targeting previously defined mineralized zones (Figure 4).
In the Hunt Block, exploration drilling is planned to extend and infill significant gold mineralization (see KRR news release,
In the Beta Block, drilling will be aimed at infilling and extending the new Mason Mineral Resource. Recent drill results, including 12.2 g/t over 6.0 metres and 14.7 g/t over 4.0 metres (See Karora news release dated
In the Gamma Block, drilling will be focused on upgrading and extending the existing 50C nickel Mineral Resource. In addition, drilling will target gold mineralization below the 50C using the analogy of the A Zone and Western Flanks geological model where gold mineralization is found directly below nickel mineralization. Previous drilling below the 50C intersected 40.5 g/t over 4.0 metres in drillhole G50-22-007NE (see Karora news release dated
The new Nickel Mineral Resource incorporates an update to the East Alpha Mineral Resource to take into account additional drilling aimed at upgrading the Kappa and Delta lenses, which are part of East Alpha (Figure 5). East Alpha represents the eastern-most nickel resource, on the east side of the Kambalda Dome. The new East Alpha Nickel Mineral Resource comprises a M&I Mineral Resource of 307,000 tonnes grading 3.2% Ni for 9,900 nickel tonnes and an Inferred Mineral Resource of 98,000 tonnes grading 2.9% Ni for 2,900 nickel tonnes. East Alpha is part of the Beta Block Mineral Resource. The Beta Hunt Mineral Resource estimate is net of mine production depletion of 23,800 tonnes grading 2.1% Ni for 500 nickel tonnes over the period
Table 3: Nickel– Beta Hunt Consolidated Mineral Resources as at
Note: Refer to detailed footnotes below
Sept-2023 | Measured | Indicated | Measured & Indicated | Inferred | ||||||||
K | Ni | Ni | K | Ni | Ni | K | Ni | Ni | K | Ni | Ni | |
Beta Block | - | - | - | 579 | 2.8 | 16,400 | 579 | 2.8 | 16,400 | 182 | 2.8 | 5,200 |
Gamma Block | - | - | - | 197 | 3.0 | 6,000 | 197 | 3.0 | 6,000 | 317 | 2.6 | 8,200 |
Total | - | - | - | 776 | 2.9 | 22,300 | 776 | 2.9 | 22,300 | 500 | 2.7 | 13,400 |
As at
The updated Gold Mineral Resource is effective as of
Reporting for the Higginsville Mineral Resource inventory is split into two main areas – Higginsville Central and Higginsville Greater (Figure 6). The former covers Mineral Resources within an area approximately 10 kilometres from the Higginsville mill while Higginsville Greater covers all Mineral Resources that fall outside the Higginsville Central area.
Table 4: Higginsville Gold Mineral Resources as at
Note: Refer to detailed footnotes below
Area | Measured | Indicated | Measured & Indicated | Inferred | ||||||||
Kt | g/t | Koz | Kt | g/t | Koz | Kt | g/t | Koz | Kt | g/t | Koz | |
HGO Central | 1,002 | 2.8 | 92 | 4,162 | 2.5 | 339 | 5,164 | 2.6 | 431 | 2,117 | 2.6 | 179 |
HGO Greater | 11,607 | 1.3 | 476 | 13,173 | 1.5 | 640 | 24,780 | 1.4 | 1,116 | 4,814 | 1.8 | 273 |
Stockpiles | 745 | 0.6 | 15 | 1,135 | 0.7 | 27 | 1,880 | 0.7 | 42 | 0 | 0.0 | 0 |
Total | 13,355 | 1.4 | 582 | 18,469 | 1.7 | 1,007 | 31,824 | 1.6 | 1,589 | 6,931 | 2.0 | 452 |
HGO Central: Drilling in 2022 and 2023 concentrated on infilling and extending existing resources at Pioneer and Aquarius. Mine production accounted for depletions at Aquarius, Two Boys,
HGO Greater: Drilling focused on extending existing resources at Mousehollow and Spargos (see KRR news release,
Stockpiles: Total M&I Resources in stockpiles decreased by 28% (16,000 ounces) compared to the previously reported Mineral Resource effective
Higginsville Gold Mineral Reserve
The updated Higginsville Gold Mineral Reserve is effective as of
Table 5: Higginsville Gold Mineral Reserves as at
Note: Refer to detailed footnotes below
Sep-2023 Mineral | Proven | Probable | Proven & Probable | ||||||
Kt | g/t | Koz | Kt | g/t | Koz | Kt | g/t | Koz | |
HGO Central | 176 | 2.0 | 12 | 702 | 2.8 | 63 | 878 | 2.6 | 75 |
HGO Greater | 7,497 | 1.3 | 320 | 4,925 | 1.8 | 285 | 12,422 | 1.5 | 605 |
Stockpiles | 405 | 0.8 | 10 | 569 | 0.8 | 16 | 973 | 0.8 | 26 |
Total | 8,078 | 1.3 | 342 | 6,196 | 1.8 | 363 | 14,273 | 1.5 | 705 |
HGO Central: Depletions in Mineral Reserve exist at Pioneer, Fairplay,
HGO Greater: Depletions at Baloo were offset by the addition of the maiden underground Mineral Reserve for Spargos, a Probable Mineral Reserve of 437,000 tonnes at 4.6 g/t for 64,000 ounces.
Gold
The updated consolidated M&I Gold Mineral Resource totals 3.2 million ounces, an increase of 9% over previously reported
Table 6: Gold – Consolidated Mineral Resources as at
Note: Refer to detailed footnotes below
Sept-23 Gold | Measured | Indicated | Measured & Indicated | Inferred | ||||||||
Kt | g/t | Koz | Kt | g/t | Koz | Kt | g/t | Koz | Kt | g/t | Koz | |
Beta Hunt | 1,278 | 2.8 | 116 | 16,855 | 2.7 | 1,484 | 18,133 | 2.7 | 1,600 | 12,865 | 2.6 | 1,086 |
Higginsville | 13,355 | 1.4 | 582 | 18,469 | 1.7 | 1,007 | 31,824 | 1.6 | 1,589 | 6,931 | 2.0 | 452 |
TOTAL | 14,633 | 1.5 | 698 | 35,324 | 2.2 | 2,490 | 49,957 | 2.0 | 3,189 | 19,796 | 2.4 | 1,538 |
The updated consolidated Proven and Probable Gold Mineral Reserve totals 1.3 million ounces, including a 7% increase at Beta Hunt, and an overall decrease of 8% over previously reported
Table 7: Gold – Consolidated Mineral Reserves as at
Note: Refer to detailed footnotes below
Sept-23 Gold Mineral | Proven | Probable | Proven & Probable | ||||||
Kt | g/t | Koz | Kt | g/t | Koz | Kt | g/t | Koz | |
Beta Hunt | 316 | 2.7 | 28 | 6,260 | 2.7 | 545 | 6,577 | 2.7 | 573 |
Higginsville | 8,078 | 1.3 | 342 | 6,196 | 1.8 | 363 | 14,273 | 1.5 | 705 |
TOTAL | 8,394 | 1.4 | 369 | 12,456 | 2.3 | 909 | 20,850 | 1.9 | 1,278 |
The Beta Hunt Mineral Resource and Reserve estimate and the Higginsville Mineral Resource and Reserve estimate will be detailed in two separate technical reports prepared in accordance with NI 43-101 to be filed under the Corporation's SEDAR profile at sedar.com within 45 days of the date of this news release.
Mr.
Mr.
Mr.
Mr
The "JORC Code" means the Australasian Code for Reporting of Mineral Resources and Ore Reserves prepared by the
Detailed Footnotes relating to Mineral Resource Estimates as at
(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 Measured and Indicated Mineral Resources are inclusive of those Mineral Resources modified to produce Mineral Reserves. |
(3) | 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. |
(4) | The Gold Mineral Resource is estimated using a long term gold price of |
(5) | The Gold Mineral Resource for Higginsville deposits is reported using a 0.5g/t Au cut-off for open pits (0.4g/t Au cut-off for |
(6) | The Nickel Mineral Resource is reported within proximity to underground development and nominal 1% Ni lower cut-off grade for the nickel sulphide mineralization. |
(7) | The Mineral Resource is depleted for all mining to |
(8) | The Nickel Mineral Resource assumes an underground mining scenario and a high level of selectivity. |
(9) | To best represent "reasonable prospects of eventual economic extraction" the mineral resource for open pits has been reported within optimized pit shells at |
(10) | Mineral Resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding. |
Detailed Footnotes relating to Mineral Reserve Estimates as at
(1) | The Mineral Reserve is estimated using a long-term gold price of |
(2) | At Beta Hunt, Underground Gold Mineral Reserves are reported at a 1.8 g/t cut-off grade while Nickel Mineral Reserves are reported at a 2% cut-off grade. At Higginsville, Underground Mineral Reserves cut-off grades vary between 1.6g/t to 2.0g/t. The cut-off grade considers Operating Mining, Processing/Haulage and G&A costs, excluding capital. |
(3) | At Higginsville, |
(4) | The Mineral Reserve is depleted for all mining to |
About
Karora is focused on increasing gold production at its integrated
This news release contains "forward-looking information" including without limitation statements relating to the liquidity and capital resources of Karora, production guidance, timing and anticipated results of the 2024 resource and reserve update, consolidated production guidance and the production and development potential of the
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.sedarplus.ca.
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.
SOURCE
© Canada Newswire, source