Karora extends gold discovery

KARORA Resources has extended the Larkin Zone at its Beta Hunt gold-nickel mine in Kambalda to over 1000m of strike.
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Karora's Beta Hunt mine in Kambalda

Staff reporter

Results included 11m at 9.4 grams per tonne gold, 10.3m at 6.2gpt, including 6.2m at 9.6gpt; 1.6m at 15.2gpt gold; and 3.5m at 20.5gpt gold, including 0.4m at 87.9gpt.

Larkin was discovered a year ago, but its proximity to existing infrastructure has allowed for its rapid expansion.

A maiden resource will be included in Karora's 2021 resource statement, due in early 2022.

"As expected, continued strong recent drill results from the Larkin gold discovery have significantly extended the interpreted strike length to over 1000m and to a depth of up to 150m below the ultramafic/basalt contact zone," Karora chairman and CEO Paul Huet said.

"This rapid strike and depth expansion follows the drilling success reported earlier this year which previously extended Larkin over a strike of 650m and up to 120m down-dip.

"Importantly, the Larkin zone remains open for further extension both along strike and at depth."

Western Flanks North and South was also extended with results of up to 6gpt gold over 5.6m.

A surface hole 300m up-plunge from the margin of the A Zone resource returned 2m at 4.7gpt gold, including 1m at 9.3gpt.

Geological observation of the surface core and RC drilling identified a broad shear structure about 40m wide located 700m north along strike of the existing Western Flanks resource.

"Planning for additional drilling to test the continuity of this mineralisation is underway," Huet said.

"As highlighted in our growth plan, our planned second decline at Beta Hunt will provide the potential to access this gold mineralisation very early in the development with the opportunity to provide gold revenue at an early stage of the mine expansion program."

Nickel drilling at 30C Trough returned 3.6m at 2.4% nickel, while drilling has also been undertaken at 50C Trough.

"Assay results are pending on the new drilling, however, contact related nickel sulphides were observed in all 11 of the new holes completed and following up drilling is ongoing," Huet said.

"Overall, drilling results at Beta Hunt continue to deliver robust, continuous extensions to our major mineralised shear zones which positions us well for our 2021 reserve and resource update.

"I am particularly pleased that our team was able to complete the initial phase of our aggressive Larkin drill program, overcoming the well-known challenges with respect to the tight labour market and COVID-19 related restrictions in Western Australia, both of which have significantly increased assay turnaround times at third party labs."


The Toronto-listed company also announced this week that it would achieve carbon neutrality in 2021 for its own operations (scope 1 emissions) and purchased electricity consumption (scope 2 emissions) through the purchase and retirement of 80,000 tonnes of verified carbon offset credits.

Karora shares closed 0.6% lower at C$3.25, valuing the company at $457 million.