Karora Resources Inc (TSE:KRR) (OTCMKTS:KRRGF) (FRA:5RN1) announced a new high-grade nickel discovery on Tuesday at its Beta Hunt mine in Western Australia.
The discovery, named the 50C Nickel Trough, is the second new nickel discovery at Beta Hunt in the last six months, giving credence to the blue sky potential for nickel as a by-product credit of the mine’s gold production profile.
Significant nickel intersections include 11.6% nickel over 4.6 metres (m), including 18.4% over 2.2m; 1.2% over 0.3m; and 2.4% over 1.8m, confirming the presence of “massive and matrix” nickel sulphide mineralization, Karora told shareholders.
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Drilling also intersected gold mineralization above and below the 50C trough, suggesting that the Beta Hunt gold mineralized system extends for over 3.5 kilometres of strike from the northern end of the A Zone. Significant gold intersections reported include 2.7 grams per ton (g/t) gold over 12m, including 10.1g/t over 1.4m; 5.2 g/t over 3.2m, and 2.8 g/t over 11.5m, including 10.5 g/t over 0.5m.
Beta Hunt historically produced over 32,000 tonnes of nickel metal. The 50C trough is located south of the Gamma Island Fault and 140m from existing development and remains open to the south, according to a statement.
Karora CEO Paul Huet called the new discovery a “major breakthrough” in understanding the nickel mineralization at Beta Hunt and provides a significant opportunity for the miner.
"I am very excited with the latest set of drill results from Beta Hunt, which continue to return outstanding intersections and now a second new nickel discovery, all within close proximity to existing mine development,” Huet said in a statement. “While we are focused on gold production as our core strategy, the potential by-product credits from these nickel grades, as high as 18%, are undoubtedly substantial.”
'Enormous advantage'
The 50C discovery is close to existing mine development, a fact Huet said reflects the “enormous advantage” Karora has at Beta Hunt, where over 400 kilometres of existing underground development is already in place due to historic nickel mining operations.
“This existing development not only provides for potential near term mining access once ventilation upgrades are completed, but also tremendous underground drilling locations from which to target further resource additions,” Huet added. “The extensive infrastructure in place reduces our waste capital development requirements and increases the profitability of the operation.”
The company is planning more drilling to target nickel growth at Beta Hunt in the second half of the year.
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