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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

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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.

 

 

Karora Resources Inc. (TSX: KRR) is pleased to announce completion of its 12,000 metre drill program at Spargos Reward Gold Project. 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.

 

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. Karora shares also trade on the OTCQX market.

 

 

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

 

 


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.)

 

Posted March 1, 2021

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