Krakatoa Resources Ltd (ASX:KTA) has pinpointed a “substantial” maiden exploration target at the Tower clay-hosted rare earth element (REE) prospect at Mt Clere Project on the north-western margins of the Yilgarn Craton, WA.
The company's modelling demonstrates clay mineralisation is flat-lying with thickness averaging 16.7 metres and open along slope.
REE intersections
Significant intersections from the remaining 18 aircore drill holes highlight the consistency of the Tower REE prospect for thickness, grade distribution and depth, with highlights including:
- 15 metres at 792 parts per million (ppm) total rare earth oxides (TREO) from 4 metres;
- 24 metres at 526ppm TREO from 4 metres; and
- 15 metres at 547ppm TREO from 4 metres.
Key magnet rare earth oxides – neodymium, praseodymium, dysprosium and terbium – are up to 759 ppm and average 179 ppm for greater than 500 ppm TREO in 4-metre composite intersections, which is highly comparable to other global clay-hosted REE resources.
Approximate resource estimation
Based on recent drilling and geological interpretation, the exploration target has been estimated at 87 to 519 million tonnes, grading 580 to 1120 ppm TREO, though the company cautions that the potential quantity and grade of the exploration target is conceptual in nature and therefore an approximation.
Initial aircore drilling supports the exploration target with resource defining drilling planned to commence soon.
High-value magnetic REEs are the focus of the developing metallurgical leach studies.
Substantial prospective target
Krakatoa CEO Mark Major said: “The discovery of clay hosted REEs is now enhanced with the substantial prospective exploration target. It is a very exciting milestone and represents a major step forward for shareholders.
“This could well be one of the largest clay hosted REE deposits within the southern hemisphere. We have only explored one of the many clay hosted REE areas identified within the extensive land package at Mt Clere.
“We are looking forward to the resumption of the drilling program where we will infill and extend the known areas of clay hosted REE as we work on completing the initial metallurgical review.”