Krakatoa Resources Ltd (ASX:KTA) focused on accelerating work at the Zopkhito Antimony–Gold Project in Georgia while advancing permitting and drilling activities across the Mt Clere rare earths assets in Western Australia during the September quarter.
During the quarter, the company secured firm commitments to raise $3.1 million via a strongly supported two-tranche placement at $0.0105 per share, with one attaching option for every two shares subscribed, exercisable at $0.02. Cash at September 30, 2025, was $1.753 million and excludes a further $1.1 million from Tranche 2, which remains subject to shareholder approval at the general meeting on October 31, 2025.
Subsequent to quarter end, the company agreed to divest the Belgravia Project for $350,000 in cash, subject to completion.
Highlights
Zopkhito Antimony–Gold Project
- Exploration advancing rapidly at the Zopkhito Antimony–Gold Project in Georgia, with Krakatoa’s maiden 7,000–10,000 m diamond drilling campaign underway.
- Two-rig drilling program focused on areas where mineralised antimony and gold veins were encountered within the historical adit development used to establish Zopkhito’s historical foreign resource estimate.
- Drill core samples from the first six holes dispatched to an assay laboratory in Turkey, with first results expected in Q4 2025.
- Underground core sampling commenced across accessible underground adits to obtain JORC-acceptable samples.
- The exploration program will support converting and expanding the foreign resource estimate of 225 kt @ 11.6% Sb (contained 26,000 t Sb) and 7.1 Mt @ 3.7 g/t Au (815,119 oz Au) into a JORC-compliant Mineral Resource Estimate.
- With ~90% of global antimony supply controlled by China, Zopkhito provides rare exposure to a critical mineral asset positioned to support EU and US supply-chain diversification across energy storage, defence and advanced materials sectors.
Mt Clere Rare Earths Project
- Application lodged over the Dingo Pass REE Prospect, which adjoins KTA’s Tower REE resource (Mt Clere Project), significantly expanding the rare earth prospect area.
- Once granted, drilling and metallurgical test work will be undertaken to advance the project and assess a possible large-scale, low-cost REE operation.
- Two-hole, ~1,000 m diamond drill program completed at the Stone Tank Nb-REE prospect, partially funded through a $220,000 EIS grant; assay results expected Q4 2025.
(Left) Exposed antimony-rich vein on adit 80 wall near the 2014 channel sample #2010_V-6_A80_2014 which returned 22.6% Sb and 3.23g/t Au from the 70cm channel. (Right) Krakatoa geological team inspecting the adit and channel sample #2010_V-6_A80_2014 cut.
Maiden program at Zopkhito
At Zopkhito, KTA started its maiden 7,000–10,000-metre diamond drilling program and, by late September, had ramped up to a two-rig operation running continuously. Drilling has been directed at zones where mineralised antimony and gold veins were previously mapped within historical adits that underpinned the project’s foreign resource estimates. Core logging and sampling progressed steadily and drill core from the first six holes was dispatched to an independent laboratory in Turkey. First assay results are expected during the December quarter of 2025. In parallel, Krakatoa initiated underground core and channel sampling across accessible adits to gather JORC-acceptable data sets.
The Zopkhito workstreams are designed to convert and, where possible, expand the foreign resource estimates — 225,000 tonnes at 11.6% Sb for approximately 26,000 tonnes of contained antimony and 7.1 million tonnes at 3.7 g/t for approximately 815,000 ounces of gold — into a JORC-compliant Mineral Resource Estimate. Targeting has been guided by Leapfrog modelling that integrates historical adit assays from Soviet-era programs and the 2013–2014 campaigns, with legacy block sections used to refine drill collar positions and trajectories along the principal quartz–stibnite vein sets and broader zones of gold alteration. In the context of global supply, where roughly 90% of primary antimony production is controlled by China, the Zopkhito program provides exposure to a critical mineral with potential relevance to emerging EU and US supply chains in energy storage, defence and advanced materials.
Mt Clere extension
At Mt Clere, the company lodged an application over the Dingo Pass REE Prospect, which adjoins the existing Tower REE resource and, once granted, will materially extend the prospective rare earths footprint. Planning is underway for drilling and metallurgical test work aimed at evaluating a potential large-scale, low-cost REE operation. In addition, Krakatoa completed a two-hole, approximately 1,000-metre diamond program at the Stone Tank niobium–REE prospect, supported in part by a $220,000 Exploration Incentive Scheme grant. Assay results from Stone Tank are anticipated in the December quarter of 2025.
What's next?
Looking ahead to the December quarter, Krakatoa will continue drilling and underground sampling at Zopkhito, report initial assay results, and progress the technical work necessary for a JORC-compliant resource and preliminary economic assessment of the mining licence area.
Work at Mt Clere will focus on advancing the Dingo Pass application, planning follow-up programs, and reporting Stone Tank assay outcomes.