Krakatoa Resources Ltd (ASX:KTA) has recorded a “big end” to 2021 with the completion of exploration programs on its priority New South Wales projects.
At Rand project in the Riverina, the company has completed a significant infill and extensional geochemical soil survey over the Bulgandry Goldfield, which resulted in more than 1,630 soil samples being gathered in the last 12 months.
Clay-hosted rare-earth elements (REE)-bearing aircore samples from magnetic bullseye anomalies have been submitted for metallurgical testing.
The company has also put forward additional land applications surrounding the Rand project.
At Belgravia in the Central West, a dipole-dipole IP survey has defined a new, significant buried porphyry-style chargeable anomaly at the Bella-Larras Lee Target.
Further, KTA has been awarded $100,000 for diamond drilling from the NSW State Government Drilling Co-operative funding initiative.
Big end to 2021
Krakatoa CEO Mark Major said: “It was a big end to 2021 for the company with a strong exploration push in both NSW and WA well into December.
“I’m proud of our NSW crew who toiled through floods, fires and hailstorms to complete the infill soil program at Rand.
“Likewise, kudos goes to our in-house team and consultants who managed to persevere with the Molong COVID outbreak and floods to complete the IP surveys and drilling on EL8153.
“It was a challenging year with COVID, weather and access to consultants and exploration resources, however, we were able to complete the exploration programs on budget and with only minor delays.
“We are looking forward to the results of the Rand soil survey which will assist us with refining drill targets for 2022; and the IP survey at Bella-Larras Lee which has revealed a potentially significant anomaly at depth which the company will pursue aggressively in 2022.”
Bulgandry Goldfield Phase 2
In December 2021, KTA completed a significant infill and extensional auger soil geochemical survey over the Bulgandry Goldfield at Rand, following up on the earlier Phase 1 work completed in February 2021.
Raw bulk samples taken have been freighted to Labwest in Perth where they will undergo ultrafine analysis (UFF-PE) for gold and a full multi-element suite.
Assay results are expected in February-March 2022.
Expert geological project review
An independent expert geologist from CTEX Consulting has been engaged to review the project in late 2022.
A detailed data review and analysis were completed following a site visit in December 2021.
The review addressed the IRG (gold), tin-tungsten and REE potential of the project.
KTA is evaluating the report’s findings and recommendations and is incorporating these in the 2022 field surveys.
ELA6464 application
Given the NSW REE discovery, the company successfully lodged an application for 2,008 square kilometres land package surrounding the current Rand ELs.
The new ground will be explored for clay-hosted ionic REE mineralisation within the regolith profile developed over numerous intrusives, like that known over the mineralised area of Rand.
The application is expected to be granted by mid-2022.
Sugarloaf assays
Assay results were received for the diamond drill holes drilled at Sugarloaf at Belgravia from late September to early November 2021.
A total of 236 core samples were submitted to ALS Global for gold and multi-element analysis. Assay results were subdued with no significant intersections returned.
Maximum individual grades were 0.022 g/t gold and 720 ppm copper over 1 metre.
The company is still waiting for the report from 23 petrography samples and completion of the interpretation of hyperspectral and whole rock analysis results.
On completion of the outstanding work, full interpretation of the system and further targeting will be undertaken.
Next steps
At Rand, for the IRGS targets, the auger soil survey results received will be incorporated with the Phase 1 results.
Gradient array IP (GAIP) is being considered for early 2022. Soil results and GAIP will be integrated with the geology to define shallow drill targets.
Additionally, RC and or DD drilling is planned for the Bullseye magnetic anomalies and the Goodwood Reef utilising $50,000 of financial government grant for a diamond hole at each target.
Once granted, regional reconnaissance aircore drilling will be done across the weathering profiles developed above the numerous intrusives on ELA6406.
It is awaiting metallurgical test-work on the anomalous REE zones around the bullseye magnetic anomalies.
On EL8153, at Sugarloaf, the company is awaiting the petrography analysis for Sugarloaf diamond drilling and interpretation of hyperspectral and whole rock results.
On final receipt of all results an interpretation, a review will be conducted.
At Bella-Larras Lee, final IP data is outstanding including 3D models and a final geophysicist’s report.
Potential work includes completing a second infill IP line 200 metres south of 6345350N to further define the current anomaly of interest, after which drilling may eventuate.