Exploration company, Krakatoa Resources Limited (ASX: KTA) is now one step closer to complete the acquisition of Belgravia Project. As announced on 11 October 2019, the company has now completed legal and technical due diligence on Exploration Licence 8153, comprising the Belgravia Project. In addition to this, the company has also provided written notice to Locksley Holdings Pty Ltd (100% owner of Belgravia Project) that it has elected to exercise the option to purchase the Project.
This announcement follows the company’s recent announcement (dated 9 October 2019) in which it advised that the Site-based due diligence conducted on Belgravia project has confirmed its highly prospective geology. Krakatoa Resources, which has a market cap of around $7.5 million, was encouraged by the finding of the due diligence.
To know more about the acquisition, Read: Krakatoa Resources Announces Acquisition of Belgravia Project; Stock Skyrockets 39%
Investors have given a big thumbs up to KTA, ever since the company entered a binding term sheet with Locksley Holdings Pty Ltd to acquire Belgravia Project (as announced on 26 September 2019), KTA’s stock price has more than doubled in the last one month alone, with a return of over 138%.
When the due diligence was kick started at the project Mr. Colin Locke, Executive Chairman, had commented:
It is to be noted that in just a few days’ time, the company’s market cap has increased from $4 million to around $7.5 million.
What are the Field findings of technical due diligence?
Major findings of the technical due diligence are as follows:
- Belgravia lies in a very fertile metallogenic province, where copper-gold porphyry deposits typically occur in clusters, providing considerable potential for more discoveries;
- Intense proximal albitisation and silica-saturation observed, similar to zonation seen at Newcrest’s Cadia East Mine by experienced porphyry geologist and mining engineer Mr Ian Cooper;
- Large-scale and pervasive alteration identified, particularly at the Bell Valley Target, which lies over the eastern parts of the Copper Hill Igneous Complex;
- Bella Prospect, a doughnut-shaped magnetic pattern considered characteristic of a porphyry intrusion, lies within 1km of noted alteration;
- Exceptionally located with the recently upgraded Mitchell Highway providing direct access to the Belgravia Project from the regional centre of Orange and township of Molong.
Experienced local porphyry geologist and mining engineer, Mr. Ian Cooper commented:
To know more about the Belgravia Project’s prospectivity click here
What is KTA’s Plan Ahead?
Following the encouraging findings of the technical due diligence, the company is now planning for the next stage of ground-based exploration. With its experienced NSW technical operations team which includes Stephen Woodham, Ian Cooper and Rangott Mineral Exploration, the company is working on detailed target generation.
It is expected that the acquisition will be completed following the company’s Annual General Meeting, to be held in late November.
Executive Chairman Colin Locke commented:
The Belgravia Project Background
Located centrally within the Molong Volcanic Belt, the Belgravia Project is prospective for four deposit types:
- Porphyry Cu-Au
- Associated skarn Cu-Au
- Orogenic Au
- VMS-Au mineralization
Belgravia Project is located between Newcrest’s Cadia and Alkane’s Boda Projects only 20 Km from Orange in the central Lachlan Fold Pomphrey Belt, refer KTA’s map below:
It is to be noted that the central part of the Molong Volcanic Belt (MVB), in which the project is located, forms a part of the East Lachlan region which constitutes the largest porphyry province in Australia.
The Belgravia Project has 6 initial targets namely Guanna Hill; Sugarloaf Creek; Shades Creek; Strathmore; Nandillyan, which are considered highly prospective for porphyry Cu-Au and associated skarn Cu-Au. Bell Valley (Copper Hill NE).
On 14 October 2019, KTA’s stock was on a trading halt, pending an announcement on a capital raising activity. KTA shares last traded on 11 October 2019 at $ 0.054. Market cap of of KTA stands at $7.5 million. In the past one month KTA has delivered a return of 157% to its investors.
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