The new drilling results include the discovery of high grade gold mineralization approximately 50 metres below the interpreted extension of the 50C nickel trough in the Gamma Block.
Underground exploration drilling has returned an initial intersection of 40.5 g/t over 4.0 metres in diamond drill hole G50-22-007NE. The new discovery is associated with a basalt breccia. This association of gold mineralization with brecciation is not generally observed in current gold Mineral Resources at Beta Hunt.
Exploration drilling to the west of the
Our first drill hole south of the 50C nickel discovery in the Gamma Block area intersected 40.5 g/t gold over 4.0 metres (hole G50-22-007NE) as part of the drill program targeting the southern extent of the nickel trough and highlights the further potential of this area to host significant gold mineralization.
We also drilled Karora's widest ever +1 g/t intersection at Beta Hunt. In the Beta Block, a campaign is underway to upgrade the 30C nickel trough and underlying
It is important to understand that Beta Hunt's current gold Mineral Resources are entirely contained within the northern
Recent Drilling Update
The description below covers new gold results for the drill period between
Turn-around times on assay results continue to be slow, up to 6 to 8 weeks for exploration samples, for reasons previously reported. As restrictions ease, this situation is expected to improve going forward.
Gamma
The first hole (G50-22-007NE) drilled south of the 50C nickel trough discovery intersected high grade gold mineralization comprising a downhole intersection of 40.5 g/t over 4.0 metres. The intersection is hosted by quartz veined and brecciated basalt within the Lunnon footwall basalt. This hole was part of a program targeting the southern strike extension of the 50C nickel trough. The mineralized breccia host rock is an unusual occurrence not observed in current gold Mineral Resources at Beta Hunt. Work is underway to determine the significance of the breccia, including reviewing the geological logs of adjacent drill holes with the aim of developing an interpretation for this new mineralized host.
The recent focus of drilling within the Gamma Block is to extend the 50C and 10C nickel mineralization within these troughs. This new high grade gold intersection highlights the potential for the Gamma Block to also host significant gold mineralization. Further drilling is planned to delineate the extent and continuity of the mineralization outlined to date, including this most recent gold intersection.
Beta
Drilling focused on upgrading the 30C nickel trough and underlying
Exploratory hole, EL-EA2-004AE, successfully confirmed the position of the known
Porphyry intrusives at Beta Hunt have been observed to replace sections of the mineralized shear zone up to 5 to 6 metres in width, however, in this instance, the main porphyry is 46 metres wide. The full mineralized interval, including the adjacent basalt is the widest (+1g/t) intersection reported in drilling completed by Karora at Beta Hunt. This new zone has not been tested at depth or along strike by drilling and potentially represents the faulted southern offset of the
About
Karora is focused on doubling gold production to 200,000 ounces by 2024 compared to 2020 and reducing costs at its integrated
Cautionary Statement Concerning Forward-Looking Statements
This news release contains 'forward-looking information' including without limitation statements relating to the growth 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.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.
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