Krakatoa Resources Ltd (ASX:KTA) has discovered widespread clay hosted ionic type rare earth elements (REEs) in the regolith at its highly prospective Mt Clere project.
The first batch of results from reconnaissance drilling geochemical analysis taken at the Tower prospect show high levels of regolith hosted REEs, including significant enrichment in the magnetic elements, concentrated in the clay saprolite profiles.
The first batch of assays from the tower prospects have reported thick intersections of clay hosted REE mineralisation, including:
- 15 metres at 1,395 parts per million (ppm) total rare earth oxides (TREO) from 16 metres;
- 12 metres at 1,130ppm from surface;
- 14 metres at 979ppm from 28 metres, including 10 metres at 1,251ppm TREO from 32 metres;
- 13 metres at 952ppm from 16 metres, including 8 metres at 1,264ppm from 16 metres;
- 33 metres at 765ppm from 8 metres, including 21 metres at 1,005ppm from 20 metres;
- 22 metres at 689ppm from surface, including 12 metres at 1,012ppm from 8 metres;
- 32 metres at 643ppm from 12 metres, including 8 metres at 941ppm from 20m; and
- 28 metres at 841ppm from 8 metres.
Summary of significant intersections, grading more than 500ppm TREO.
Notably, the results show that mineralisation occurs from surface and is open, which "opens the door for the company to fast track a comprehensive infill and extensional drill program at Tower Prospect and reconnaissance drilling of other highly prospective areas,” Krakatoa CEO Mark Major said.
“These results have now confirmed that widespread clay hosted, ready soluble REEs exist at significant concentrations within the thick saprolite regolith of the Mt Clere project.
“This discovery has come at a great time for the company and our shareholders.
"Demand for these magnetic and critical REEs are expected to increase over the next ten years, as the world embarks on the electric revolution. We are now in a strong position to capitalise on this potential as we have only covered a six square kilometre area, mineralisation is open, thick and close to surface.
"Significantly, we have multiple other high priority targets within the extensive 2,300-square-kilometre property.”
Widespread REEs
Krakatoa completed 39 vertical reconnaissance aircore drill holes, covering 1,047 meters, around the Tower prospect (an area of around 6 square kilometres) in December 2021, with the aim of investigating and testing for well-developed clay-rich regolith profiles that could be prospective for ion adsorption REE mineralisation.
Positively, the majority of holes intersected the expected bedrock of alkaline granitic and gneissic basement rocks.
KTA received the initial batch of assay results for 21 of the 39 drill holes, with the remaining assays to be reported when they come to hand.
The results from the initial holes revealed significant levels of widespread REEs, with abundant quantities of magnetic and critical rare earth elements.
The clay intersection of more than 500ppm TREO range in thickness from 10 to 33 metres within the current area of drilling.
Only one hole, located on the edge of Tower west zone, returned grades lower than 500ppm TREO.
Cross section 7172740N showing a simplified regolith profile and TREO zones of 500 and 200ppm.
Cross section 7171500N showing simplified regolith profile and TREO zones of 500 and 200ppm.
Zirconium was also elevated within several zones of the regolith, with several assays higher than 1000ppm returned from some intervals. The main mineralisation envelopes are interpreted to lie within the large horizontal clay saprolite layer, which is open to the north, east and west.
Additional areas within the laterite caprock and within the highly weathered saprock have also shown significant REE mineralisation.
The regolith tends to be dominated by light rare earth oxides (LREO) with up to 40% of the TREO being critical rare earth oxide (CREO) and 34% as magnetic rare earth oxide (MREO). The presence of high-value neodymium, praseodymium, dysprosium, terbium and Holmium is encouraging.
What’s next?
KTA is now waiting on analysis for the remaining Tower drill holes. Once received, it will start a full review of the regolith geochemistry and undertake phase one metallurgical test work to help understand the metallurgical recoveries across various mineralised zones identified within the drill program.
The company will then fast track a drill program to infill and extend the drilling traverses within the Tower prospect as well as reconnaissance drilling of other highly prospective areas.