Krakatoa Resources Ltd (ASX:KTA) has been granted an exploration licence – EL9366 or Urana – covering a further 2,241 square kilometres across the Rand Project in the Riverina region of southern NSW.
Late in 2021, Krakatoa discovered elevated rare earth elements (REEs) associated with weathered intrusions at the Bullseye Magnetic Targets within licence EL9000.
The drill results revealed strong total rare earth oxide (TREO) intersections including:
- 11 metres at 1,223 parts per million (ppm) TREO from 43 metres;
- 7 metres at 1,285 ppm TREO from 42 metres within 28 metres at 598 ppm TREO from 38 metres to end-of-hole;
- 4 metres at 1,424 ppm TREO from 35 metres within 12 metres at 633 ppm TREO from 31 metres; and
- 8 metres at 1,230 ppm TREO from 9 metres; within 35 metres at 579 ppm TREO from 1-metre to end-of-hole.
Under-explored area
Recognising the potential for the district to host significant REEs, Krakatoa applied for and has now been granted EL9366.
Last year’s aircore program confirmed the magnetic anomalies to be three separate intrusive bodies, all concealed by Cenozoic cover.
Granites in the broader project area occur both as rare prominent hills or have been interpreted under cover sequences by geophysical techniques, mainly magnetics.
The NSW Geological Survey’s recently completed East Riverina Mapping Project studied intrusions surrounding the Rand Project and defined four main intrusive groups, noting the potential association of REEs with the Devonian granites identified by the study.
Widespread sedimentary cover has hindered bedrock exploration and as a result, the area is under-explored for most commodities.
Krakatoa’s 2021 exploration campaign covering the EL9000 tenement defined several new areas and types of intrusions, most of which were previously unrecognised.
The upside of this is that there are clearly more intrusives in the area than previously thought.
Metallurgical test-work to define enrichment
Krakatoa has initiated geochemical and petrographic studies to classify and understand the various intrusion types, especially those associated with elevated REEs.
Of particular interest is the accumulation of REEs in clay-rich weathered zones above and adjacent to intrusions which may form ionic adsorption clay REE deposits. This style of deposit is an attractive exploration target because development, capital expenditure and operation costs tend to be low compared to hard rock deposits.
The company’s exploration rationale from here is to conduct shallow aircore drilling across areas of known and interpreted intrusives within the granted tenements, testing the upper parts of the weathering profile for REE enrichment.
This work should define what REE enrichment has occurred and to what extent.
In December last year, selected aircore percussion chip samples from four of the 2021 Bullseye magnetic targets drilling holes were sent for metallurgical testing.
These samples are undergoing leach testing using ammonium sulphate and weak acids to determine REE levels.
In the meantime, regional reconnaissance aircore drilling will be conducted across the weathering profiles developed above the numerous intrusives on EL9366. Drilling is expected to commence mid-2022, dependent upon access and rig availability.
About Rand Project
Rand Project covers an area of 580 square kilometres, centred about 60 kilometres NNW of Albury in southern NSW.
The project has a SW-trending shear zone that transects the entire tenement package forming a distinct structural corridor some 40 kilometres in length.