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Karora Resources Completes Acquisition of Spargos Reward High-Grade Gold Project

Mining News - Published on Wed, 12 Aug 2020

Image Source: Karora Resources Spargos Reward Gold Project
Karora Resources Inc announced that following an extensive due diligence period, it has closed the acquisition of the Spargos Reward Gold Project from Corona Resources Limited as originally announced on May 11, 2020. The Spargos Gold Project contains a historical JORC Mineral Resource Estimate of 112,000 oz (785,800 tonnes @ 4.4 g/t) indicated resource and 19,000 oz (151,000 tonnes @ 4.0 g/t) inferred resource.Paul Andre Huet, Chairman and CEO, commented "The Spargos Reward Project is an excellent bolt-on project for our Higginsville gold operation and a great addition to our already strong asset base in Western Australia, providing a new high-grade source of feed just 65km from the HGO mill. We intend to fast track Spargos into our growing production pipeline with the goal of beginning to generate cash flow from the Project in 2021. Follow up is planned on the exciting exploration upside potential at Spargos, as demonstrated by RC drillhole 19SPRRC004 intersection of 37.1 g/t over 18m (62m to 80m), including 93.1 g/t over 2m from 78m downhole3,4."

Karora has acquired the Spargos Reward Project for A$4 million in cash and will be subject to a minimum spending commitment of A$2.5 million on exploration and development over a two-year period from the closing date. The seller is entitled to an additional (i) A$1.5 million in Karora shares on commencement of gold production from Spargos, and (ii) A$1.0 million in Karora shares if a new additional indicated gold resource of at least 165,000 oz is delineated at the project.

The Spargos Reward project tenements cover 33 km2 located in the Eastern Goldfields of Western Australia, 35 minutes by road to HGO. On top of the existing historical resource, there are a number of historic workings within the project, the most notable of which is the historic Spargos Reward Gold Mine which produced 105,397 tonnes at an average grade of 8.56 g/t Au in the 1930s and 1940s1, with limited gold extraction since that time.

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Posted By : Yogender Pancholi on Wed, 12 Aug 2020
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