Why is KTA Under Spotlight? Stock up by over 96% in 2019

In the past few months, Krakatoa Resources Limited’s (ASX: KTA) stock has been performing impressively on ASX. In the last month alone, the stock price has rallied by more than 60%. Additionally, on a year-to-date basis, KTA’s stock price has almost doubled with a return of 96.00% to its shareholders (as on 25 October 2019).

YTD KTA Price Chart (Source: ASX)

The stock has been active on ASX on the back of the company’s recent acquisitions, in June this year KTA acquired a highly prospective Mt Clere Rare earth project, and is now on the verge of acquiring a copper-gold prospective Project, the Belgravia Project, located in the largest porphyry province in Australia.

Targeting Porphyry in Australia’s discovery Epicenter

Small cap exploration company, KTA is rapidly progressing on its mission is to locate, acquire and develop high value mineral projects. In line with its mission, KTA is currently targeting Porphyry in Australia’s discovery epicentre.

The Belgravia Project, is located in the central part of the Molong Volcanic Belt (MVB).  If compared with other players operating in the same Molong Volcanic Belt in NSW, KTA, which currently has a market cap of $7.2 million is providing a leverage play.

  • Newcrest Mining Ltd (ASX: NCM) market cap of $25.06 billion (Flagship Cadia Project) 40 Km in same belt South of KTA (refer below map);
  • Alice Queen Ltd (ASX: AQX) market cap of $30.33 million (exploration tenements) North of ALK in the same belt;
  • Alkane Resources Ltd (ASX: ALK) market cap of $366.92 million (Flagship Boda Project) 70 Km in same belt North of KTA;

Regional TMI RTP Map of Molong Volcanic Belt. Note: Alkane (ASX: ALK) ~70Km North of KTA in Blue and Newcrest (ASX: NCM) ~ 40Km to the South in Yellow (Source: Company Reports)

Inching closer to Acquire the Belgravia Project

KTA has elected to exercise the option to purchase the Belgravia Project and has already received firm commitments from professional and sophisticated investors to raise $750,000 to pay the consideration amount for the Belgravia Project acquisition. After paying for the consideration, the remaining funds of the placement will be utilised to conduct the exploration activities at the Belgravia Project.

The site-based due diligence completed by KTA has confirmed the highly prospective geology within the project.

To fast track exploration on the Belgravia Project, KTA has appointed Rangott Mineral Exploration Pty Ltd, long-established service provider with its highly experienced staff, as its NSW exploration contractor.

The exploration team of Rangott shall be led by Mr Ian Cooper who was a Resource Development geologist for Newcrest Mining’s Cadia Valley Operations in the early 2000’s and has a deep understanding of the Lachlan Fold Belt and alkaline porphyry Cu+Au±Mo and skarn Cu+Au+Fe deposits.

KTA is working with its experienced NSW technical operations team comprising Mr. Stephen Woodham, Mr. Ian Cooper and Rangott to commence detailed target generation.

Major site-based due diligence field findings:

  • Belgravia lies in a very fertile metallogenic province, where copper-gold porphyry deposits typically occur in clusters, providing considerable potential for more discoveries;
  • Large-scale and pervasive alteration identified, particularly at the Bell Valley Target, which lies over the eastern parts of the Copper Hill Igneous Complex;
  • 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;
  • 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.

To know more about Belgravia Project, Click here.

KTA’s Position in the Rare Earths Space

KTA’s position in the exploration space was further enhanced with the acquisition of highly prospective Mt Clere Rare Earth Project in the month of June 2019.

Mt Clere Rare Earth Project is located around 200km northwest of Meekatharra, in Western Australia, containing multiple targets, including

  • REE (Rare Earths Elements) and thorium in enriched monazite sands;
  • REE occurring in plausible carbonatites associated with alkaline magmatism;
  • REE ion adsorption on clays within the widely preserved deeply weathered lateritic profiles.

For comparison, an ASX snapshot of listed REE companies appear below:

At a time where major importers of rare earths like  the U.S. are looking for rare earth companies outside China, it can be said that KTA’s acquisition of Mt Clere came at the right time.

The company is on a steadfast progress path, with exposure to resources such as Rare Earths Element, gold and copper. As on 23 October 2019 KTA is currently trading at $0.05, with a market cap of 7.35 million.

Stock Information

On 25 October 2019, KTA shares were trading at $0.046 (AEST: 12:50 PM).


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