Krakatoa Resources Finds Shallow Gold Targets at Britannia Mine, Drilling Planned for July

Summary

• KTA identified two priority DGPR targets at the historical Britannia Mine through a Deep Ground Penetrating Radar (DGPR) survey.
• KTA’s encouraging results from the survey advances the Britannia target to drill-ready status.
• KTA plans to implement a drill program asap.

Aggressive Gold explorer, Krakatoa Resources Limited (ASX:KTA) operates in the world-class Lachlan Fold Belt, New South Wales focussing on two major projects being:

Belgravia: Hunting for large porphyry Cu-Au systems next to Copper Hill and 35km north of Cadia in the same Molong Volcanic Belt; and

Turon : Shallow high grade drill ready gold targets

KTA have recently reported Deep Ground Penetrating Radar (DGPR) interpretations from its survey of the historical Britannia Mine found within the Turon Gold Project.

The DGPR survey was recently carried out across the historical Britannia Mine gold workings, where:

• 10,000 oz were won from a small development area attesting to significant high-grade gold mineralisation
• Two targets were delineated with a shallow response directly corresponding with the mineralised Britannia mine sequence
• A second deeper, offset target (modelled to come within 60m of the surface) has not been previously explored and remains completely open
• The high correlation between the shallow DGPR anomaly with the exploited high-grade mineralisation at Britannia is encouraging for the second deeper target

The Turon Project lies 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 Britannia Mine forms the southern extent of the historical Box Ridgeline of gold workings which strike over a length of 2.4 km.

KTA contracted Loza Radar Australia (LRA) to undertake DGPR surveys to map the sub-surface geology and provide evidence of favourable hosting environments for mineralisation at the historic Britannia Mine and comprised of a total of 8 lines for 3,448 metres on a line spacing of ~70m.

Loza Radar employs Deep GPR Loza, a ground scanning device designed for studying subsurface structure at depths from a few metres to hundreds of metres.

There were several reasons for choosing the historic Britannia Mine for broader application of DGPR at Turon. These were as follows:

• It produced ~10,000oz of gold over a small area implying the presence of high-grade gold Mineralisation
• BHP drilled three vertical holes (for 199m) and extensively sampled surface and underground workings, mullock and chip sampling all veining and host lithologies in the Britannia Mine in the late 1980s
• Chip samples along adit walls by BHP outlined a coherent remnant zone (approximately 20m in strike) of high-grade mineralisation with five samples exceeding 2.5g/t, including 4.46g/t, 6.87g/t, 10.2 g/t and a peak value of 60g/t Au.
• The Britannia geology bears many similarities in terms of host-rocks, structural-style and mineralisation-style to other turbidite-hosted gold deposits, including the nearby Hill End gold deposit and the Bendigo-Ballarat zone in central Victoria (e.g. Fosterville)

Located Rock Chip Data (Source: Company's Report)

BHP targeted through drilling stacked saddle reef and related gold mineralisation. Drilling sought extensions both north and south of the main mineralised zone, which is associated with south plunging, an upright, tight anticline.

The mineralisation reportedly consists of saddle veins several metres thick at the crest of the anticline that decreases in width down the legs. Stockwork 'spur' zones extend up to 2m into the hanging wall zone.

Of the three holes, BHP drilled, only TD1, the middle hole, intersected significant quartz veining producing a grade of 0.43g/t gold from a single two-metre composite sample.

Results from DGPR Survey

Two critical anomalies were identified through the DGPR interpretation across Britannia and are believed to coincide with structurally controlled quartz veining. The relative depth differs these anomalies with a shallower anomaly that directly corresponds with the historic Britannia workings. A deeper anomaly offset from the known mineralisation is still untested.

The deeper anomaly, which coincidently is considered as the stronger of two, perhaps represents a parallel system that remains open in all directions and is untested by modern exploration with no evidence of historical mine workings or prospecting.

Britannia Mine DGPR Survey interpretation (Source: Company's Report)

KTA identified several other near-vertical or steeply dipping structures through the survey. These structures are found to have corresponding substantially broad anomalous zones connected to alteration of the host beds in the country-rock. DGPR patterns were similar to those resulting from stockwork veins are observed on some lines.

Results from Historical RAB Drilling

More recently, KTA announced that the historical RAB drilling at the north of the Quartz Ridge Mine, which is located within Turon Project of KTA, has returned encouraging results. The results obtained are from a historical RAB drill program concluded nearly 30 years ago indicating highly anomalous gold intercepts with results up to 10m @ 1.64g/t gold.

Details at: Is KTA next to fire with Copper & Gold in the Lachlan Fold? Shallow Gold intercepts discovered

Overall, survey response has been quite encouraging for KTA, and the Company takes assurance in the coincidence between DGPR response with the historical workings, known veining and drill-intersected mineralisation. Moreover, KTA expectations beyond a technical success and looks forward to implementing a drill program as soon as practicable.

On 1 July 2020, KTA stock closed at a price of $0.045, up 18% as compared to its previous day’s closing price, with market capitalisation of $ 8.53 million.