Krakatoa Resources Ltd earlier this week began its first-ever drilling campaign at the Zopkhito Sb-Au Project in Georgia. Chief executive officer Mark Major described the program as a “significant event for the project” and a major step in Krakatoa’s efforts to modernise the resource estimate.
Highlights
- Krakatoa Resources has started its maiden drill campaign at the Zopkhito Sb-Au Project in Georgia.
- The program will include 7,000–10,000 metres of diamond drilling.
- Targets areas were previously mapped through underground development.
- A foreign resource estimate had outlined 225,000 tonnes at 11.6% Sb and 7.10 million tonnes at 3.7 g/t Au.
- The aim is to validate and potentially convert the estimate to JORC 2012-compliant status.
- One rig is active, with another due to mobilise soon.
- The drilling will inform development options and test scale and grade potential.
- Georgia’s strategic trade access and favourable business environment support the project.
Examining history
The 7,000–10,000 metre diamond drilling program is focused on testing areas where historical underground work had identified significant mineralised antimony and gold veins. These historical workings underpin a foreign resource estimate of 225,000 tonnes at 11.60% antimony and 7.10 million tonnes at 3.70 grams per tonne gold.
Krakatoa told investors that the objective of the program is to generate modern geological and assay data that will allow the company to validate and potentially expand these earlier results. It said the campaign marks a key milestone in the company’s plan to establish a JORC 2012-compliant mineral resource at Zopkhito.
Drilling rig already active
The company confirmed that one drilling rig is already active on site and that a second rig is expected to mobilise shortly. It said the current work will help define the scale and grade potential of the mineral system, providing the data required to assess development options going forward.
Strategic location
Krakatoa also highlighted the strategic value of Georgia as a jurisdiction for resource investment. It pointed to the country’s consistent economic growth, ranking in global competitiveness, and wide network of free trade agreements. These factors, the company said, strengthen the business case for its exploration efforts.
The company added that Georgia offers duty-free access to markets representing 2.80 billion people, with trade agreements in place with the European Union, China, Turkey and the Commonwealth of Independent States.
Krakatoa noted that Georgia’s pro-business environment, customs policies and strategic location between Europe and Asia enhance the investment appeal of its Zopkhito Project.