Krakatoa Resources Ltd (ASX:KTA) is encouraged by the interpreted results of a moving loop electromagnetic ground (MLEM) survey over 15 of the high-priority late-time electromagnetic survey (AEM) targets identified at Mt Clere Rare Earth Project in the northwest margins of the Yilgarn Craton, Western Australia.
The survey highlights multiple walk-up sulphide drill targets with strong 10,000-plus siemens conductors recorded at the project.
Notably, all MLEM traverses recorded significant mid to late time anomalies indicative of basement sources.
Moving forward, Krakatoa will drill test priority targets on completion of all regulatory permitting earmarked for the late September quarter.
Read: Krakatoa Resources to begin MLEM survey with priority targets to be drilled in June
“Significant massive sulphide mineralisation”
Krakatoa CEO Mark Major said: “The company is extremely pleased with the results of the MLEM target generation.
“We recognised we had some great targets after flying the VTEM survey and now we have confirmed the true nature of these high calibre targets.
“This area is an emerging region and one which is attracting a lot of attention now.
“Multiple targets have the potential to host significant massive sulphide mineralisation and we could be on the cusp of something significant for our shareholders."
Map of AEM targets showing MLEM lines over TMI magnetics.
MLEM survey
In total, 18 traverses of data were collected over 15 target areas, for about 45-line kilometres of data collection.
All data were collected using a moving in-loop configuration with a series of wider initial pass traverses followed up with tighter infill traverses where required.
All traverses recorded significant mid to late time anomalies (basement sources) except for the B3 target.
Plate modelling of the MLEM data indicates the anomalies are sourced by basement conductors with conductances that range from hundreds of Siemens to more than 10,000.
Strongest anomalies were recorded at Milly-Milly (MM-1) and North Bullbadger (NBB-8). The sources of the MLEM anomalies model in the high thousands of Siemens (typically greater than 8,000) with responses recorded well into the last channel of the 0.25-hertz data.
Forward plan
Krakatoa is undertaking the regulatory permitting and heritage clearance requirements at Mt Clere.
Once complete the company will rapidly advance to drilling which is expected to be a combination of reverse circulation and diamond methods.
All targets have been 3D plate modelled and prioritised for drill testing.
Additional conductors and PGE-nickel-copper targets, identified from the initial interpretation of the AEM data in early 2022, will be followed up with the second phase of MLEM surveys and ground-truthing programs this year.
Major adds: “We have only looked at a third of the targets so far.
“We are now planning our inaugural drilling program to test these targets and have commenced the processes for obtaining all the regulatory permitting and requirements for the heritage survey.
“We are looking to complete these activities as soon as possible.”