First Larkin Zone resource boosts Beta Hunt gold inventory for Karora 

With the addition of a first resource for the Larkin Zone at its Beta Hunt mine in Western Australia, Karora Resources (TSX: KRR; US-OTC: KRRGF) has increased its measured and indicated gold resources, net of depletions, by 8% and its inferred resources by 43%.  

The Larkin Zone holds 1.4 million tonnes grading 2.6 grams gold per tonne for 119,000 oz. gold in the measured and indicated category. Inferred resources add 2.2 million tonnes grading 2.3 grams gold for 162,000 oz. gold.   

Karora’s consolidated gold resource estimate, which includes the Beta Hunt mine and the Higginsville Gold project located about 75 km away, now totals 44.9 million tonnes grading 1.9 grams gold per tonne for 2.7 million oz. gold in the measured and indicated category and 15.7 million tonnes grading 2.5 grams gold for 1.2 million oz. gold in the inferred category.  

Karora CEO Paul Andre Huet said the company was pleased with the “robust increases,” net of mining depletion. 

Located about 600 km from Perth, the Beta Hunt mine produced about 78,476 oz. gold in 2021, up from 66,479 oz. gold in 2020. For 2022, drilling at Beta Hunt will continue to extend and upgrade the Western Flanks, A Zone and new Larkin Zone resources. 

Aside from gold, the Beta mine also hosts nickel resources totalling 560,000 tonnes grading 2.9% nickel for 16,100 tonnes of nickel metal in the measured and indicated category and 314,000 tonnes grading 2.8% nickel for 8,680 tonnes of nickel metal.  

Measured and indicated resources at Beta totals 13.2 million tonnes grading 2.6 grams gold per tonne for 1.1 million oz. gold, an increase of 69,000 oz. or 7% compared to the 2020 estimate. Inferred resources now total 9.4 million tonnes grading 2.6 grams gold for 786,000 oz., an increase of 249,000 oz. or 46%.  

Resources at Higginsville also increased due to an upgrade of the historical Spargos mineral resource. Measured and indicated resources total 31.7 million tonnes grading 1.6 grams gold for 1.5 million oz. gold, an increase of 121,000 oz., or 8%. Inferred resource total 6.4 million tonnes grading 2.1 grams gold for 428,000 oz. gold, an increase of 118,000 ounces.  

The company plans to announce an update nickel resource estimate in the second quarter of this year.  

“Today’s update revealed strong continued growth of Karora’s gold resource,” Canaccord Genuity mining analyst Michael Fairbairn wrote in a research note to clients. “We believe Karora has potential to continue to grow Beta Hunt’s gold resource at the Larkin Zone (open along strike and at depth) and other recent discoveries at the Fletcher Shear Zone and in the Gamma Block.” 

Fairbairn added that the company’s nickel exposure, which contributes about 4% of the overall revenue in the “elevated price environment,” would help offset inflationary pressures at Beta Hunt. As a result of the resource update, the Canaccord increased the company’s target price to $7.25 from $6.75.  

At presstime in Toronto, Karora Resources was trading at $6.69 per share, up 23¢ or 3.56%, within a 52-week trading range of $3.03 and $6.82. The company has 154.1 million common shares outstanding for a market cap of $1 billion.