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Australian explorer in the Lachlan Fold Belt, Krakatoa Resources Limited (ASX:KTA) is ready to get its drilling operations off the ground after the company has finalised the drilling contractor. One of the eminent local contractors, Durock Drilling Pty Ltd, has been appointed the task for the drilling operations in the Bell Valley Target area.
Krakatoa announced the confirmation of the mobilisation timetable for the Aircore rig. It would commence the drilling in the three porphyry prospects in the Bell Area of Belgravia Project on 24 February 2020, subject to the approval by the government. In the previous announcement by KTA, Executive Chairman Colin Locke expressed eagerness for the commencement of the first drill program in the Bell Valley Target area.
Proposed drill hole locations at the Bell Valley Target Area (Source: Company’s Report)
The drilling announcement comes two days after the company declared the discovery of the porphyry pattern at Sugarloaf, another target for the Belgravia Project.
A Quick Idea about the Belgravia Project
Covering the area of 80 kilometre-square, Belgravia Project is in the East Lachlan Province which constitutes the part of the Lachlan Fold Belt, NSW.
The significant discoveries and large scale, low cost mining operations in the belt have grabbed the attention of the mining investors. The Lachlan fold belt are currently, the hottest exploration mineralisation zone in the Australia. The Belgravia mining project shares the East Lachlan Fold Belt with the Cadia operations, Australia's largest gold mine and the Alkane Resources' new Boda discovery.
(Source: Company’s Report)
The project has the potential for prospective future discoveries as it is in a fertile metallogenic province with exhibiting typical occurrence of copper-gold porphyry deposits.
The six initial targets identified by Krakatoa Resources for the project include Bell Valley, Guanna Hill, Sugarloaf Creek, Shades Creek, Strathmore and Nandillyan.
Owing to its strategic location (7km East of Molong and 20km Norwest of Orange regional Centre), the project has access to necessary infrastructural facilities.
Drilling Program at Bell Valley Prospect
The three porphyry prospects which have been identified in the Company’s Bell Valley Target Area includes Bella, Lara 1 and Lara 2. The drilling operations would also encapsulate Lee Prospect, which is a demagnetised zone located directly south of the Lara 2 prospects.
The current drill program at the Bell Valley would consist of 127 Aircore holes over the different parts of Copper Hill and Larras Lee Igneous Complexes. Apart from the above two areas, Krakatoa Resources in its Project would test the drill targets at the demagnetised zone between the complexes. Copper Hill gold-copper deposit lies 2.7km southwest of the drilling grid and is utilised as a subject in the Pre-feasibility study of the project.
What’s Next for the Company in the Bell Valley Prospects?
The company has lodged an application in order to receive co-funding for 600m diamond drill hole through the NSW Government’s New Frontiers Cooperative Drilling program. The program is a government initiative for attracting investments in the mineral exploration by providing grants to the exploration companies to support the discovery of Group 1 Minerals. If approved, the Company intends on using the entire funding on the single diamond drill at the Bella Prospect.
Notably, in the last six months, KTA’s stock price has increased by 39% on ASX. By the end of the trading session on 17 February 202, KTA stock closed for $0.030, with a market cap of $7 million.
