Krakatoa Resources - Quarterly Activities Report June 2024
KRAKATOA RESOURCES LIMITED (KTA) Share Update July 2024 Monday 29th
Krakatoa Resources Identifies New Mineral Targets in Mt Clere and Turon Projects
Krakatoa Resources Limited (ASX: KTA) has announced significant exploration progress in their Mt Clere and Turon projects during the June 2024 quarter, identifying new areas of interest for niobium, rare earth elements, copper, and gold.
Instant Summary:
- New niobium-REE geochemical anomaly identified at Mt Clere.
- Extensive 40km long target catchment area for alkaline intrusive systems.
- Two high priority gravity anomalies identified for future drilling at Mt Clere.
- New copper-gold prospect defined at Turon Project with high-grade rock-chip assays.
- Company holds $1.3 million in cash at the end of the quarter.
Mt Clere Project
During the June 2024 quarter, Krakatoa Resources made significant strides in the Mt Clere project. Systematic exploration programs have identified several new areas of interest, including a large niobium-REE geochemical anomaly positioned over a major regional gravity high known as Stone Tank.
The target area, which spans 40km, shows potential for alkaline intrusive systems such as carbonatites. The area coincides with a 15km long regional gravity high, and additional soil sampling has highlighted a carbonatite pathfinder element signature with enriched niobium-REE zonation.
Recent ground gravity survey data has defined a large 5km positive complex with several dense targets in the Stone Tank prospect area. Two large high priority, discrete, and strong amplitude gravity anomalies have been identified for future drill targeting. One target is coincident with a buried magnetic high, while the other runs parallel to a magnetic low feature interpreted as a structural lineament.
Turon Project
The Turon Project has also shown promising results with the identification of a new copper-gold prospect. Rock-chip assays have returned values up to 1.24g/t gold and 10.45% copper, with additional anomalous molybdenum and tin. Four samples returned over 1% copper, averaging 4.83% copper to a maximum of 10.45%.
The highest-ranked targets correlate with previously mapped pegmatite outcrops, and work is underway to investigate the prospective geological corridor. The area features extensive historical alluvial gold workings, including the Dry Creek and Dam Creek mineral occurrences.
Corporate and Financial Update
As of the end of the quarter, Krakatoa Resources holds $1.3 million in cash. The company also holds a $109k drilling credit with Topdrill, which can be used for further drilling exploration. Exploration and evaluation expenditure during the quarter amounted to $174k.
Going forward, the company plans to complete additional deeper regolith geochemical sampling of the two gravity anomalies at Mt Clere, which may involve auger or air core drilling. The company will also refine the gravity survey over the priority targets to assist with initial drill targeting and prepare for a maiden drilling campaign.
The identification of new mineral targets at Mt Clere and Turon projects is a positive development for Krakatoa Resources. The discovery of high-grade niobium-REE and copper-gold anomalies could significantly enhance the company's mineral resource base. This news is likely to have a favorable impact on the company's stock price as investors react to the potential for future resource expansion and development.
Investor Reaction:
Analysts have expressed optimism about the new discoveries, noting that the identification of high-priority drill targets and high-grade assays at Turon could lead to significant resource additions. Investor sentiment has been positive, with many looking forward to the upcoming drilling campaigns.
Conclusion:
Investors should keep an eye on Krakatoa Resources' future exploration updates and drilling results. The company's strategic focus on expanding its mineral resource base through systematic exploration could yield substantial returns. Stay informed on Krakatoa Resources' progress and potential investment opportunities.