Karora Resources Inc. [KRR-TSX; KRRGD-OTCQX] reports drilling has defined an 80-metre-wide nickel-mineralized zone, extended from the previously reported preliminary estimate of 50 metres, at the 50C nickel trough discovery at the Beta Hunt mine, Western Australia.
The 50C nickel trough, discovered earlier this year, is located south of the Gamma Island fault. The follow-up drill results announced today represent an extension to the previously reported nickel sulphide mineralization and further support the significant upside potential for nickel as a byproduct credit to Karora’s growing gold production profile.
Paul Huet, chairman and CEO, said, â€œWith each drill result, the nickel potential at Beta Hunt continues to build towards a very meaningful byproduct contributor for Karora. We have now extended the width of nickel mineralization at the 50C discovery to over 80 metres along a strike length of 150 metres, remaining open along 2.6 kilometres of potential strike to the southeast. The high nickel grades intersected in the first two follow-up drill holes to the 50C discovery are very encouraging, with pending assays for 16 remaining holes expected in the fourth quarter.
â€œAs a reminder, the 50C discovery is within close proximity to existing mine development, reflecting the enormous advantage we have at Beta Hunt with over 400 kilometres of existing underground development already in place due to previous mining operations. The development provides access to optimal underground drill bay areas to quickly advance exploration work and potentially facilitate both faster development and mining.â€
In the second half of 2021, Karora undertook a 6,000-metre drill program aimed at extending both the previously reported 50C nickel trough discovery and the adjacent 10C nickel mineral resource. The 50C discovery was highlighted by the previously reported intersection of 11.6% nickel over 4.6 metres (downhole) in drill hole G50-22-005E. To date, 28 holes have been drilled for 4,986 metres. Assay results for the 50C and 10C drilling programs have been received for six holes.
The first two holes of the program tested the basalt-ultramafic contact in a position immediately updip from the discovery intersection in hole G50-22-005E. The new intersections are respectively spaced at 20 metres and 50 metres from the discovery intersection and, combined with the two previously reported intersections (holes G50-22-005E and G50-22-003E), support a total width of the nickel-mineralized zone of over 80 metres.
Hole G50-22-006NE returned 4.0% nickel over 3.5 metres anf hole G55-22-001NE returned 5.3% nickel over 2.2 metres. True widths cannot be determined with currently available information.
Significant results returned to date from the 10C drilling include drill hole G10-22-001NR that returned 0.4% nickel over 1.5 metres. G10-22-002NR returned 1.0% nickel over 4.6 metres. Hole G10-22-003NR returned 1.% nickel over 0.9 metre. Hole G10-22-004NR returned 3.5% nickel over 0.3 metres and 2.5% nickel over 0.7 metres.
Over all, recent drill results continue to reinforce the potential for mineralization similar to the Beta zone, south of the Gamma Island fault, and strengthen the initial interpretation that this new mine area only 140 metres from existing mine development, and represents a significant growth opportunity for byproduct nickel production at Beta Hunt.
Karora is focused on doubling gold production to 200,000 ounces by 2024 compared with 2020 and reducing costs at its integrated Beta Hunt gold mine and Higginsville gold operations.