Krakatoa Resources Ltd (ASX:KTA) is preparing to launch a maiden drilling campaign at its Zopkhito Antimony-Gold Project in Georgia after securing key funding and finalising site preparations. The June quarter also saw the company complete a diamond drill program at Mt Clere in Western Australia and strengthen its balance sheet with a two-part placement totalling A$1.659 million.
KTA is targeting conversion of Zopkhito’s foreign resource estimate — 815,119 ounces of gold and 26,000 tonnes of antimony — into a JORC-compliant resource during the 2025 field season. The company also aims to conduct a preliminary economic assessment for the licence area.
At Mt Clere, two 500-metre holes were drilled to test gravity anomalies at the Stone Tank Prospect.
Zopkhito project mobilisation and drill campaign
Krakatoa has signed drilling contracts and is preparing to launch a 7,000-to-10,000-metre diamond drilling program at Zopkhito in Q3 2025. Platform construction and camp refurbishment are nearing completion, with mobilisation underway.
The project, located in the Racha region of Georgia, contains a foreign resource estimate of 225,000 tonnes at 11.6% antimony and 7.1 million tonnes at 3.7 grams per tonne gold. Drilling will target known high-grade veins and extensions beyond the current resource envelope. The company has designed a 14,000-metre program across 13 platforms, with this year’s effort expected to drill 7,000 metres or 30–40% of the foreign resource area.
(Left) Adit below drill platform 3. (Right) Dozer cleaning Adit access track.
In addition to surface diamond drilling, Krakatoa will trial in-adit core drilling using portable equipment to test both quartz-antimony veins and associated alteration halos. Geophysical work including drone magnetic and sub-audio magnetics surveys is also planned to refine drill targets.
Drilling completed at Mt Clere Stone Tank prospect
At the 100%-owned Mt Clere Project in Western Australia, Krakatoa completed two 500-metre diamond drill holes targeting gravity anomalies at the Jagger and Richards prospects. These anomalies are interpreted to represent shallow carbonatite or alteration systems possibly hosting critical minerals.
The Stone Tank drill program is partially funded by a A$220,000 Exploration Incentive Scheme (EIS) grant from the Western Australian Government. Drill core will be cut, logged and assayed in Perth. Further analysis will determine the nature and potential scale of the intrusive system at depth.
Corporate activity and funding initiatives
Krakatoa received firm commitments to raise A$1.302 million via a placement of 124 million shares at 1.05 cents per share, with one-for-two free-attaching unquoted options exercisable at 2 cents by September 30, 2026. A further A$357,000 was raised via a Top-Up Placement on the same terms.
Funds will support Zopkhito drilling, in-adit sampling, geophysical surveys and corporate costs. At quarter’s end, Krakatoa held A$1.55 million in cash and a A$109,000 drilling credit with Topdrill.
Financial position and outlook
Exploration expenditure during the quarter totalled A$793,000, with operating cash outflows of A$1.163 million. Krakatoa expects current cash reserves to support operations for at least 1.3 quarters and anticipates raising additional funds to maintain its exploration momentum.
No work was conducted during the quarter at the Rand, Turon, Belgravia or King Tamba projects.
The company remains focused on advancing its flagship Zopkhito Project and evaluating results from Mt Clere.