Highlights:
- 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
TORONTO, Nov. 21,
2023 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX:
KRRGF) ("Karora" or the "Corporation") is pleased to announce
significant increases to its Gold Measured and Indicated
("M&I") Mineral Resource at its flagship Beta Hunt Mine
(increase of 18%) and Consolidated M&I Resources at Beta Hunt
and Higginsville (increase of 9%), both net of mining depletion.
Beta Hunt's Western Flanks zone highlighted the update with
improved grades (12% higher) and a net addition of 143,000 ounces
in M&I Resources. Nickel M&I Resources also showed improved
grade along with the addition of 1,200 tonnes of contained
nickel.
Paul Andre Huet, Chairman &
CEO, commented: "Our 2023 drilling campaign at Beta Hunt was
focused primarily on expanding our Measured and Indicated Resource
base and upgrading a significant portion of our Inferred Resource.
I am extremely pleased to announce our success in this objective,
net of mining depletion, culminating in a 249,000 ounce increase
(or 18%) to gold M&I Resources. I am also very encouraged by
improvements in M&I Resource grade – an increase of 8%.
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
April 13, 2023), we are certainly
looking forward to its inclusion in our resource update in
2024.
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) East Alpha Zone was successful. In 2024, we intend to
complete additional drilling and exploration work in the Gamma
block south of the Gamma Fault where our large 50C resource is
located. With a current 22,300 contained nickel tonnes in M&I
Mineral Resources and an additional 13,400 contained nickel tonnes
in Inferred Mineral Resources at Beta Hunt, the nickel growth story
is becoming an increasingly important part of Beta Hunt's future
production profile.
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."
Beta Hunt Gold Mineral
Resource
The updated Gold Mineral Resource is effective as of
September 30, 2023 and represents an
update to the previously released Beta Hunt Mineral Resource that
was effective as of September 30,
2022 (see Karora news release dated February 13, 2023). The updated Measured &
Indicated Gold Mineral Resource totals 1.6 million ounces, an
increase of 18% (249,000 ounces). The updated Inferred Gold Mineral
Resource now totals 1.1 million ounces, representing a 3% (34,000
ounces) increase. M&I grades increased by 8%, from 2.5 g/t to
2.7 g/t.
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 October 1,
2022 to September 30, 2023.
The result continues the multi-year trend of significantly
increasing Mineral Resources (Figure 1) in support of Karora's
growth plan.
Table 1: Beta Hunt Gold Mineral Resources as at September 30, 2023
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 September
30, 2022 Mineral Resource in support of the Karora Growth
Plan, which is underpinned by an expansion to 2.0 Mtpa for mine
production from Beta Hunt (see Karora news release dated
June 28, 2021). The Mineral Resource
comprises the previously reported Western Flanks, A Zone and
Larkin. The latter previously included the Cowcill Zone which is
now reported as a separate Mineral Resource. In addition, a maiden
Mason Zone Mineral Resource was added to the Beta Hunt Mineral
Resource Inventory for the first time. The location of all five
resource areas is shown in Figure 2.
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 September 18, 2023).
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
September 30, 2022 Mineral Resource.
The Larkin M&I Resource increased by 50% (56,000 ounces) and an
increase of 88% (62,000 ounces) was reported for Inferred
Resources.
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
Mason Zone in 2023 provided enough drill data at the north end of
the Zone to show continuity of mineralization to support the
production of the first-ever Mason Mineral Resource. Mason
represents mineralized hangingwall shear zones with similar
albite-biotite rich alteration to the adjacent Larkin Mineral
Resource. Mason remains open at depth and along strike to the south
(see Karora news release dated September 18,
2023).
Beta Hunt Gold Mineral Reserve
Summary
The updated Gold Mineral Reserve is effective as of September 30, 2023, and represents an update to
the previously released Beta Hunt Mineral Reserve as of
September 30, 2022 (see Karora news
release dated February 13, 2023).
The updated Gold Proven and Probable Mineral Reserve now totals
573,000 ounces, representing a 6% (35,000 ounces) increase from
the, September 30, 2022 Proven and
Probable Mineral Reserve estimate. The Beta Hunt Mineral Reserve is
net of mine production depletion of 1.2 million tonnes grading 2.6
g/t for 101,000 ounces over the period October 1st, 2022, to September 30, 2023.
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 September 30, 2023
Note: Refer to
detailed footnotes below
Sep-2023 Mineral
Reserve
|
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.
2024 Drilling Program
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,
September 12, 2023) identified as
part of the Fletcher Zone with the aim of producing a maiden
Mineral Resource for this Zone. During 2023, drilling in the
southern end of the Fletcher Zone was highlighted by intersections
of 46.5 g/t over 7.0 metres, 6.5 g/t over 26.0 metres and 15.9 g/t
over 6.0 metres.
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 September 18,
2023), highlight the potential to grow this new mineral
resource.
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
November 15, 2021).
Beta Hunt Nickel Mineral
Resource
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 October 1, 2022 to September 30, 2023. Mining over this period was
completed in the 25C, 30C, East Alpha and 4C positions.
Table 3: Nickel– Beta Hunt Consolidated Mineral Resources as
at Sept 30, 2023
Note:
Refer to detailed footnotes below
Sept-2023
Nickel Mineral
Resource
|
Measured
|
Indicated
|
Measured &
Indicated
|
Inferred
|
K
tonnes
|
Ni
(%)
|
Ni
tonnes
|
K
tonnes
|
Ni
(%)
|
Ni
tonnes
|
K
tonnes
|
Ni
(%)
|
Ni
tonnes
|
K
tonnes
|
Ni
(%)
|
Ni
tonnes
|
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 September 30, 2023, M&I
Mineral Resources totaled 776,000 tonnes grading 2.9% for 22,300
nickel tonnes. This marks an increase of 1,200 nickel tonnes, or 6%
compared to the September 30, 2022,
Measured and Indicated Mineral Resource estimate (see Karora news
release dated March 7, 2023). The
change reflects an upgrade based on new infill drilling in the
Kappa and Delta nickel lenses, part of the East Alpha Mineral
Resource. The September 30, 2023
Inferred Mineral Resources totals 500,000 tonnes grading 2.7% for
13,400 nickel tonnes. This result represents no change compared to
the September 30, 2022 Inferred
Mineral Resource estimate.
Higginsville Gold
Mineral Resource
The updated Gold Mineral Resource is effective as of
September 30, 2023 and represents an
update to the previously released Higginsville Mineral Resource as
of January 31, 2022 (see Karora news
release dated April 7, 2022). The
updated M&I Gold Mineral Resource totals 1.6 million ounces,
with no significant change in total ounces. The updated Inferred
Gold Mineral Resource now totals 0.45 million ounces, representing
a 5% (23,000 ounces) increase (Table 5). The Higginsville Mineral
Resource estimate is net of mine production depletion of 770,000
tonnes grading 3.4 g/t for 85,000 ounces over the period
February 1, 2022 to September 30, 2023 period.
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
September 30, 2023
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,
Hidden Secret and most recently, Pioneer. The updated M&I
Resource increased by 10% (39,000 ounces) and the Inferred Resource
increased by 4% (7,000 ounces) compared to the previously reported
Mineral Resource effective January 31,
2022.
HGO Greater: Drilling focused on extending existing
resources at Mousehollow and Spargos (see KRR news release,
September 18, 2023). Mine production
accounted for depletions at Spargos. The updated M&I Resource
decreased by 2% (21,000 ounces) and the Inferred Resource increased
by 7% (17,000 ounces) compared to the previously reported Mineral
Resource effective January 31,
2022.
Stockpiles: Total M&I Resources in stockpiles
decreased by 28% (16,000 ounces) compared to the previously
reported Mineral Resource effective January
31, 2022. The decrease reflects stockpile depletion over the
reporting period as part of the objective to fill the increased
milling capacity provided by the addition Lakewood in August 2022 to the existing Higginsville mill
while Beta Hunt's infrastructure expansion to 2MTPA is
undertaken.
Higginsville Gold Mineral Reserve
The updated Higginsville Gold Mineral Reserve is effective as of
September 30, 2023 and represents an
update to the previously released Mineral Reserve that was
effective as of September 30, 2020
(see KRR release, December 16, 2020).
The Higginsville Mineral Reserve estimate of 705,000 ounces is net
of mine production depletion of 1.9 million tonnes grading 2.4 g/t
for 142,000 ounces over the period October
1, 2020 to September 30,
2023.
Table 5: Higginsville Gold Mineral Reserves as at
September 30, 2023
Note:
Refer to detailed footnotes below
Sep-2023 Mineral
Reserve
|
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, Hidden Secret and Mousehollow and Two Boys.
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.
Consolidated Mineral Resource and
Reserve Summary
Gold
The updated consolidated M&I Gold Mineral Resource totals
3.2 million ounces, an increase of 9% over previously reported
September 30, 2022 estimate for Beta
Hunt (see Karora news release dated February
13, 2023) and the previously reported January 2022 estimate for Higginsville (see
Karora news release dated April 7,
2022). The Consolidated Inferred Gold Mineral Resource now
totals 1.5 million ounces, representing a 4% increase.
Table 6: Gold – Consolidated Mineral Resources as at
Sept 30, 2023
Note: Refer
to detailed footnotes below
Sept-23 Gold
Mineral Resource
Summary
|
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 September 30, 2022 estimate for Beta Hunt and the
previously reported September, 2020 estimate for Higginsville.
Drilling to convert Mineral Resources to Mineral Reserves has been
concentrated on upgrading the flagship Beta Hunt Mine since the
Company's last Mineral Reserve update.
Table 7: Gold – Consolidated Mineral Reserves as at
Sept 30, 2023
Note: Refer
to detailed footnotes below
Sept-23 Gold
Mineral
Reserve Summary
|
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
|
Technical Report
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.
Compliance Statement (JORC 2012
and NI 43-101)
Mr. Stephen Devlin is Group
Geologist for Karora, a full-time employee of Karora and a Fellow
of the AusIMM. Mr Devlin has sufficient experience that is relevant
to the style of mineralization and type of deposit under
consideration and to the activity being undertaken to qualify as a
Competent Person as defined in the JORC Code, 2012 Edition, and
fulfils the requirements to be a "Qualified Person" for the
purposes of NI 43-101. Mr Devlin has reviewed and approved the
disclosure of the technical information for the Higginsville Gold
Mineral Resource (excluding Mt Henry) and the Beta Hunt Nickel
Mineral Resource included in this news release.
Mr. Graham de la Mare is
Principal Resource Geologist for Karora, a full-time employee of
Karora and a Fellow of the AIG. Mr de la Mare has sufficient
experience that is relevant to the style of mineralization and type
of deposit under consideration and to the activity being undertaken
to qualify as a Competent Person as defined in the JORC Code, 2012
Edition, and fulfils the requirements to be a "Qualified Person"
for the purposes of NI 43-101. Mr de la Mare has reviewed and
approved the disclosure of the technical information for the Beta
Hunt Gold Mineral Resource included in this news release.
Mr. Ian Glacken is a geologist
and geostatistician and a Fellow and Chartered Professional
Geologist of the AusIMM. Mr Glacken is an employee of Snowden
Optiro of Perth, Western Australia, and was employed by Karora
to compile the Gold Mineral Resource estimates for the Mt Henry
Project. Mr Glacken has sufficient experience that is relevant to
the style of mineralization and type of deposit under consideration
and to the activity being undertaken to qualify as a Competent
Person as defined in the JORC Code, 2012 Edition, and also fulfills
the requirements of a "Qualified Person" for the purposes of NI
43-101. Mr Glacken has reviewed and approved the disclosure of the
scientific and technical information for the Mt Henry Gold Mineral
Resource in this news release. The Mt Henry Gold Mineral Resource
is part of the Higginsville Greater Mineral Resource estimate.
Mr Peter Ganza is Chief Operating
Officer - Australia for Karora, a
full-time employee of Karora, a mining engineer and a Chartered
Professional Member of the AusIMM. Mr Ganza has sufficient
experience that is relevant to the style of mineralization and type
of deposit under consideration and to the activity being undertaken
to qualify as a Competent Person as defined in the JORC Code, 2012
Edition, and fulfils the requirements to be a "Qualified Person"
for the purposes of NI 43-101. Mr Ganza has reviewed and approved
the disclosure of the technical information for the Consolidated
Mineral Reserves included in this news release.
The "JORC Code" means the Australasian Code for Reporting of
Mineral Resources and Ore Reserves prepared by the Joint Ore
Reserves Committee of the Australasian Institute of Mining and
Metallurgy, Australian Institute of Geoscientists and Mineral
Council of Australia. There are no material differences
between the definitions of Mineral Resources under the applicable
definitions adopted by the Canadian Institute of Mining, Metallurgy
and Petroleum (the "CIM Definition Standards") and the
corresponding equivalent definitions in the JORC Code for Mineral
Resources.
Detailed Footnotes relating to Mineral Resource Estimates as
at September 30,2023
(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 US$1,700/oz
with a US:AUD exchange rate of 0.70.
|
(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 Mt Henry Project) and
a 1.3g/t Au cut-off grade for underground (1.6g/t Au for Spargos
underground). The Gold Mineral Resource for Beta Hunt underground
is reported using a 1.4g/t Au cut-off.
|
(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 September 30, 2023
|
(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 A$2,429 (US$1,700) and, for underground resources, areas
considered sterilized by historical mining are depleted from the
Mineral Resource.
|
(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
September 30, 2023
(1)
|
The Mineral Reserve is
estimated using a long-term gold price of US$1,500/oz and a long
term nickel price of US$17,500/t with a US:AUD exchange rate of
0.70.
|
(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, Open
Pit cut-off grades vary between 0.8 g/t to 1.0g/t. The cut-off
grade considers dilution, mine recovery, mining and
processing/haulage costs. Dilution and recovery factors varied by
deposit.
|
(4)
|
The Mineral Reserve is
depleted for all mining to September 30, 2023.
|
About Karora Resources
Karora is focused on increasing gold production at its
integrated Beta Hunt Gold Mine and Higginsville Gold Operations
("HGO") in Western Australia. The
Higginsville treatment facility is a low-cost 1.6 Mtpa processing
plant, which is fed at capacity from Karora's underground Beta Hunt
mine and Higginsville mines. In July
2022, Karora acquired the 1.0 Mtpa Lakewood Mill in
Western Australia. At Beta Hunt, a
robust gold Mineral Resource and Reserve are hosted in multiple
gold shears, with gold intersections along a 5 km strike length
remaining open in multiple directions. HGO has a substantial
Mineral gold Resource and Reserve and prospective land package
totaling approximately 1,900 square kilometers. Karora has a strong
Board and management team focused on delivering shareholder value
and responsible mining, as demonstrated by Karora's commitment to
reducing emissions across its operations. Karora's common shares
trade on the TSX under the symbol KRR and on the OTCQX market under
the symbol KRRGF.
Cautionary Statement Concerning
Forward-Looking Statements
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 Beta Hunt Mine, Higginsville Gold Operation, the
Spargos Gold Mine, the Lakewood Mill, and the completion of the
second Beta Hunt decline system.
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 Karora Resources Inc.