- Krakatoa Resources (KTA) has just recovered remarkable gold results from a historical drill program at the old Quartz Ridge gold mine located at Turon, in the Lachlan Fold Belt, NSW.
- These results reported highly anomalous gold intercepts of 10m @ up to 1.64g/t gold from surface to end of the hole which is yet to be tested below 10m.
- Investors can now look forward to a diamond drill program to test targets and potentially define a resource
- KTA stock rose approximately 25% by the mid of the trading day on 26 June 2020.
Shallow Gold intercepts discovered from historic drilling adding to the very high-grade rock chips.
Junior gold explorer, with projects located in the Lachlan fold belt-the hottest gold exploration address in Australia, Krakatoa Resources Limited (ASX:KTA) has just announced significant results gleaned from historic drilling nearly 30 years ago across the north extension of the Quartz Ridge Mine. The Quartz Ridge mine is placed within the Krakatoa’s fully-owned Turon Project, located near Bathurst, New South Wales. Turon was acquired via non-dilutive application in November 2019.
Micro-Cap Krakatoa Stock was up a massive 25% on ASX post the announcement.
Although production figures from Quartz Reef are scarce, historical high grade production from past operations were sizeable enough to support a town with three hotels, racetrack, store, post office and school.
Post the announcement, existing shareholders were up 25% from the last close to 4c at AEST 12:57 PM on 26 June 2020. With ~218m shares on issue, the company has a market capitalisation of $7 million.
Whilst the drilling results came from the old mine to the north, the southern extent of the known strike reports spectacular rock chip grades. See Figure 1 below in green shaded labels.
Figure 1: Quartz Ridge line of workings on the western strike and its relation to the recently reported Box Ridge line of workings to the east.
Past explorers reported numerous significant gold grades from chip and mullock sampling, including 1,535g/t, 135g/t, 26g/t, 14.6g/t, 12.55g/t and 11.3 g/t Au, distributed along the length of the gold workings. The outstanding chip result of 1,535g/t gold lies south of Dead Horse Reef and remains untested by drilling. Confidence in the open strike length is strengthened by a peak value of 11.3g/t gold from a chip sample north of the Quartz Ridge Mine, near the currently described RAB drilling.
- The Quartz Ridge line of gold workings extends over a stretch of 1.6 km from the mine situated in the northern extremes to the Dead Horse Reef Mine in the south
- The vein quartz appears to be 10m wide and forms a north-south strike ridge conformable with the adjoining metasediments of the Cunningham Formation, which includes siltstones, slates, calcareous and lithic greywackes, as well as conglomerates
- The Dead Horse Reef Mine to the south contains an adit approximately 130 m long.
Figure 2: RAB drill results at Quartz Ridge Mine (Source: Company's Report)
Quartz Ridge represents an exciting shallow exploitable opportunity for the Company where multiple walk- up drill targets with significant gold tenor are identified.
The shallow RAB program identified a number of highly anomalous gold intercepts with results up to 10m @ 1.64g/t gold from the surface to end of the hole, which remain untested. Further, encouraging assay results unearthed for 18 shallow RAB holes drilled north of the historical Quartz Ridge Mine include the following:
- AT01 – 10m @ 1.64g/t gold from the surface to end of the hole
- AT04 - 10m @ 0.99g/t gold from the surface to end of the hole
- AT16 - 10m @ 0.85g/t gold from the surface to end of the hole
- AT05 - 10m @ 0.81g/t gold from the surface to end of the hole
Way Ahead for KTA
Moving forward, KTA will determine the number and locations of multiple walk-up drill targets, realise the size and tenor of any tailings, survey, sample and map accessible underground workings and organise a RC or diamond drilling program to test rock chip and drill results to the:
- south of Dead Horse Reef Mine,
- north of the Quartz Ridge Mine and
- at many of the workings in-between.
KTA is focussed on gold exploration in the globally renowned Lachlan Fold Belt, New South Wales through two projects, namely, Belgravia Porphyry Copper-Gold Project and Turon Gold Project.
Belgravia Project (Krakatoa 100%):
The Belgravia Project covers an area of 80km2 and is located in the central part of the Molong Volcanic Belt (MVB), East Lachlan province, between Newcrest Mining's Cadia Operations and Alkane Resources Boda Discovery. The Project has six initial target areas considered highly prospective for porphyry Cu-Au and associated skarn Cu-Au, with Bell Valley and Sugarloaf representing the two most advanced target areas.
Bell Valley contains a considerable portion of the Copper Hill Intrusive Complex, the interpreted porphyry complex which hosts the Copper Hill deposit (890koz Au & 310kt Cu) and has highly prospective magnetic low features spanning 6km. Sugarloaf contains a 900m Deep Ground Penetrating Radar anomaly located within a distinctive magnetic low feature considered characteristic of a porphyry-style deposit and co-incident with anomalous rock chips including 5.19g/t Au and 1.73% Cu.
Turon Project (Krakatoa 100%):
The Turon Project covers 120km2 and is located within the Lachlan Fold Belt's Hill End Trough, a north-trending elongated pull-apart basin containing sedimentary and volcanic rocks of Silurian and Devonian age. The Project contains two separate north-trending reef systems, the Quartz Ridge and Box Ridge, comprising shafts, adits and drifts that strike over 1.6km and 2.4km respectively. Both reef systems have demonstrated high grade gold anomalism (up to 1,530g/t Au in rock chips) and shallow gold targets (up to 10m @ 1.64g/t Au from surface to end of hole) that present walk up drill targets.