Krakatoa Resources Ltd (ASX:KTA) is fast-tracking exploration of its Rand Project in southern NSW after completing a highly successful detailed aeromagnetic survey that revealed prominent bullseye targets.
Several priority exploration targets have been identified from the survey and each has highly encouraging and prominent magnetic signatures.
Survey success
Two magnetic ‘eye’ features of 600 metres in diameter were revealed NNW of the historic Bulgandry workings with a third similarly sized adjacent magnetic feature.
The survey also displayed 8 kilometres of ENE-trending magnetic lineaments associated with the prospective gold locations at Bulgandry where several mines previously produced gold at very high grades of up to 265 g/t.
With Krakatoa also encouraged by the possible alignment of palaeochannels with mineralisation controlling basement structures, the company is continuing its assessment of survey imagery and plans gradient array induced polarisation (IP) and soil sampling programs.
“Excellent platform”
Krakatoa’s chief executive officer Mark Major said: “The comprehensive magnetic survey provides an excellent platform for assessing and highlighting the considerable regional exploration gold potential available at Rand.
“The bullseye targets are a great example of this.”
Historical government drill holes support the presence of a mineralised system near each bullseye target with two holes returning promising assays despite being developed off-target, including 1-metre at 0.113 g/t gold from 58 metres.
Alteration identified in each drill hole includes strongly chloritised quartz–hornblende diorite with minor quartz veinlets and disseminated pyrite.
Holes “outside target area”
Major said: “It is clear from our detailed survey that the government drilling was undertaken outside the main target area.
“Our inspection and assay results of the government core supports the associated geological model indicative of gold-bearing intrusive related gold system.
“We now need to confirm the extent of the disseminated sulphides within the target area, so future drilling can be aligned for more accurate positioning, which could create significant early value for shareholders.”
The Rand Project covers a combined area of 580 square kilometres and is around 60 kilometres NNW of Albury in southern NSW, in the south of the prolific Lachlan Fold Belt.
Future course of action
The company is continuing to review the airborne magnetics to identify further opportunities, culminating in a pipeline of exploration targets.
Gradient array IP and soil sampling programs are expected in early 2021 once land access agreements and regulatory approvals have been completed.
Areas of considerable interest include Goombargana Hill and several intrusive located near Coreen in the project’s west.
Krakatoa will also seek to explore the two distinct splayed shear system under Rand with a 70 kilometres combined strike length.