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Emerging Australian explorer Krakatoa Resources Limited (ASX: KTA) has almost doubled its shareholdersâ wealth in the last three months with the stock price soaring by over 90% since the end of August. Over the period, the company expanded its landholding in the Lachlan Fold Belt, with the acquisition of the Turon Project and conducted significant exploration works at the Belgravia Project.
Itâs been over two months since KTA entered a binding term sheet with Locksley Holdings Pty Ltd to acquire the Belgravia Project. Since then, KTAâs exploration work is focused on the discovery of large tonnage, moderate grade Cu-Au porphyry and high-grade Au ± Cu skarn deposit styles at Belgravia.
On 5 November 2019, the company announced that it has commenced field-based exploration activities at the Bell Valley target, one of 6 initial targets on the Belgravia Project which is prospective for porphyry Cu-Au and associated skarn Cu-Au.
The Bell Valley target contains the eastern half of the Copper Hill Igneous Complex (CHIC), which locally hosts the Copper Hill deposit with a total resource of 87Mt @ 0.32g/t Au & 0.36% Cu comprising indicated resources of 47mt @ 0.39g/t Au & 0.4% Cu and inferred resources of 39mt @ 0.24g/t Au & 0.32% Cu, using a 0.2% copper cut-off grade.
The companyâs current activities are focused on the Bella Prospect, a âdoughnutâ shaped magnetic pattern considered characteristic of porphyry intrusion, present within the Bell Valley target.
Drone Magnetics Survey at the Bell Valley Target
On 27 November 2019, the company informed that it has commenced an Unmanned Aerial Vehicle (UAV) magnetics survey by Thomson Aviation on the Bell Valley Target. As a part of this survey, the company is using UAV drone technology (refer below image) which is being flown at a flight height between 30m â 35m, on 25m line spacing in an east west direction with tie lines every 250m in a north-south direction.
UAV Hexacopter (Source: Company Reports)
The company believes that the survey will provide 320km line kilometres of data which is expected to highlight variations in local magnetic responses, areas of possible porphyry-style alteration, intrusive bodies and potential mineralising structures. The Company expects the data acquisition and subsequent processing and interpretation to take four weeks.
In order to detect subtle features of alteration and mineralisation, Mr Ian Cooper (porphyry geologist and mining engineer) has collected 34 rock chip samples around the Bell Valley Target. The samples have been submitted to ALS for geochemical analysis. Results are anticipated within two weeks.
Besides, Bell Valley, there are five other targets identified within the project area.
- Guanna Hill
- Sugarloaf Creek
- Shades Creek
- Strathmore
- Nandillyan
While the company is busy with the exploration at the Belgravia Project, it continued to explore opportunities to further expand its landholding within the Lachlan Fold Belt. As a result of this, the company acquired 100% interest in the Turon Project via direct exploration licence application (ELA5882), subject to grant.
Situated approximately 50km east of the Companyâs Belgravia Project, the Turon Project contains multiple anomalies demanding an investigation. Four groups of historical mineral occurrences exist within the Turon Project:
- Quartz Ridge
- Turondale
- Millah Murrah
- Dam Creek
KTA intends to undertake a comprehensive review of the historical work completed to generate targets for follow-up testing.
KTA Executive Chairman, Colin Locke commented:
âThe Turon Project is a prospective, non-dilutionary and strategically positioned acquisition that contains multiple anomalies demanding investigation. We continue to focus on and aggressively advance our Belgravia Project, in particular the Bell Valley Porphyry target, whilst actively exploring opportunities to further expand our landholding within the Lachlan Fold Belt.â
On 3 December 2019, KTA stock was trading at a price of $0.04 with a market cap of around $6.93 million (AEST: 2:41PM). At $ 7 million, KTA is trading at a significantly lower market cap in relation to other ASX explorers in the Lachlan Fold Belt.
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