Krakatoa Resources Limited (ASX: KTA) has achieved a major milestone through delivery of a maiden Mineral Resource estimate at the Tower Project, the first prospect drilled of many perspective clay hosted REE targets at the Company’s flagship Mt Clere Project in Western Australia.
Highlights:
- Maiden Mineral Resource estimate of 101MT @ 840ppm TREO
- Mineralisation starts from surface and is highlighted by thick zones of high-grade TREO
- 40% of the Mineral Resource estimate is classified in the Indicated category, 60% classified in the Inferred category
- Maiden Mineral Resource estimate only incorporates 20% of identified Exploration Target drilled to date, with significant resource expansion potential
- Exploration Target for the Tower area is estimated at 57 – 481MT grading 530-1050ppm TREO
- Krakatoa to commence reconnaissance drilling at Tower West and infill and extensional drilling at Tower
CEO, Mark Major said the impressive maiden Mineral Resource estimate of 101MT @ 840ppm TREO, which has been defined in only seven months following the discovery at Tower, which is highlighted by thick zones of near-surface mineralisation. 40% of the Mineral Resource estimate has been classified in an Indicated category. Significantly, the existing resource has the potential to substantially grow in size and scale as the Mineral Resource estimate only incorporates 20% of the identified Exploration Target drilled to date.
Krakatoa has estimated an Exploration Target for the Tower area of 57 – 481MT at 530-1050ppm TREO.
Following completion of the maiden Mineral Resource estimate, Krakatoa will now commence key development workstreams at the Tower Project and initiate discussions with potential end-users, offtake partners and industry groups for potential funding, development, and downstream opportunities.
“This is an outstanding result and a game-changer for Krakatoa and our shareholders,” Mr Major said.
“It has only been seven months since we made the initial discovery at Tower and now the team has delivered a robust maiden resource and we still have a significant exploration target to chase.
“This puts us in a solid position to continue with our systematic exploration strategy and also commence strategic discussions with end users and industry groups related to potential development, funding, off-take arrangements, and downstream processing opportunities.
“We will now continue to explore the Tower area further and look to increase the resource confidence as well as size, plus continue our regional exploration focus. In parallel, we will advance the ongoing technical and metallurgical studies and look to commence baseline environmental and social studies with the vision to move toward production as quickly as possible.
“We believe Tower and the wider area presents a unique opportunity to develop a project of size and quality with key attributes highlighted by free-digging dirt, low strip ratio, extensive mineralised thickness and in this area that doesn’t compete with agriculture for land use.”
The Mineral Resource estimate was conducted over the central and southern Tower area located within exploration licences EL09/2357.
In total the Mineral Resource estimate is based on 109 vertical air core holes over the central and south areas of the Tower project. In total 139 drill holes for 3,848m of drilling have been completed, with 30 drill holes at Tower West not included in the Mineral Resource estimate.
For further information please visit: https://www.ktaresources.com/
