Krakatoa Resources Ltd (ASX:KTA) has uncovered rare earth oxides (REO) hosted within ionic clay through supplementary analysis of shallow aircore drilling from Bullseye Target within the Rand Project in the Riverina region of New South Wales.
A reassessment of assay samples from drilling revealed notable rare earth element (REE) intersections, including:
- 11 metres at 1,223 parts per million (ppm) total rare earth oxides (TREO) from 43 metres;
- 7 metres at 1,285ppm TREO from 42 metres within 28 metres at 598ppm TREO from 38 metres to end of hole (EOH);
- 4 metres at 1,424ppm TREO from 35 metres within 12 metres at 633ppm TREO from 31 metres; and
- 8 metres at 1,230ppm TREO from 9 metres within 35 metres at 579ppm TREO from 1-metre to EOH.
Investors welcomed the discovery, pushing KTA’s share price up 22% intraday to as much as $0.061 a share.
REE investigation just beginning
Krakatoa Resources (ASX:KTA) CEO Mark Major said: “We are excited with the recent rare earth element reconnaissance assay results. The review of the initial assay results identified anomalous REEs within the multi-element program on many of the aircore samples.
“As such a more detailed investigation was required to ascertain the significance of this find. We can now report we have identified significant levels of rare earth elements within the regolith profile of the bullseyes area; both within the metasediments and over the intrusives.
“We are still very early in this investigation and can only speculate on the origins of the rare earths but it is clear they have concentrated in the clay-rich saprolite zones above the intrusives as well as within the metasediments surrounding these.
“The full hole analysis has shown significant widths of REE concentrations and more recent weak acid testing indicates a high level of readily mobile REE exist.
“There seems to be an ionic clay host embodiment over the weathering of the intrusions which is the most likely source of the REE. Further work will be undertaken to understand the source and more importantly the distribution of the REE.
“This is the first discovery of clay-hosted REE within this area of NSW. The company has significantly expanded its landholding over the already large area via applications of additional tenure with similar geophysical signatures and underlying geology.”
Analysis of the REO using week acid solution (WAR) returned weakly bound, highly soluble REEs, characteristic of ionic absorption REE deposits and offering a potential 86% recovery rate using WAR over the intrusive basement and up to 77% recovery from metasediments.
Next steps
The Rand area is considered prospective for intrusion-related gold system (IRGS), shear-hosted (orogenic) gold, magmatic tin-tungsten deposits, copper-gold porphyries with associated epithermal systems; and now REEs in shallow regolith.
Krakatoa Resources has completed a review of the regional area and expanded its landholding to include additional prospective ground over potential REE hosting intrusives, with minor alluvial cover.
This will expand the current landholding around the Rand Project by 2,241 square kilometres.
Detailed studies into the basement rock, as well as mineral identification along with salt solution (pH 4-5, slightly acidic) leach test-work will be undertaken on samples.
Additional aircore drilling is being planned over the granted tenements in the first quarter of 2022 subject to regulatory approvals and land access, where more extensive exploration over the various intrusives within the granted landholding will be tested.