Emerging Australian exploration company Krakatoa Resources Limited (ASX: KTA) is currently in the middle of acquiring the Belgravia Project, which lies in a very fertile metallogenic province and is prospective for four deposit types, namely, porphyry Cu-Au, associated skarn Cu-Au, orogenic Au, and VMS-Au mineralisation.
To know more about the Belgravia Project’s Prospectivity click here
A quick Recap of KTA and Belgravia Project
Previously KTA entered a binding term sheet with Locksley Holdings Pty Ltd to acquire the Belgravia Project, which granted KTA a 21-day option period to undertake due diligence on the project.
As announced on Friday , KTA has now exercised its option to acquire 100% of the Belgravia Project from Locksley Holdings Pty Ltd having satisfactorily completed its legal and technical due diligence.
To know more about the acquisition, Read: Krakatoa Resources Announces Acquisition of Belgravia Project; Stock Skyrockets 39%
What were the findings of Due diligence?
The findings from the recent field due diligence at Belgravia further confirmed the highly prospective geology within the project.
Major field findings as part of technical due diligence, include:
- Belgravia lies in a very fertile metallogenic province, where copper-gold porphyry deposits typically occur in clusters, providing considerable potential for more discoveries;
- 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;
- Large-scale and pervasive alteration identified, particularly at the Bell Valley Target, which lies over the eastern parts of the Copper Hill Igneous Complex;
- 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.
What’s next for KTA?
KTA has started planning for the next stage of ground-based exploration and is now working with an experienced NSW technical operations team on detailed target generation. It is expected that the acquisition will be completed by late November 2019.
KTA have appointed Rangott Mineral Exploration Pty Ltd, led by Ian Cooper, a resource development geologist with a deep understanding of the Lachlan Ford Belt and alkaline porphyry Cu+Au±Mo and skarn Cu+Au+Fe deposits and part of the discovery and delineation of substantial resources at the Cadia Quarry and Cadia East deposits.
KTA have also appointed Stephen Woodham as NSW Exploration Consultant, a founding director of LFB Resources prior to being taken over by Alkane Resources.
KTA’s securities on Trading halt
As announced on 14 October 2019, KTA’s securities are placed on a trading halt at the request of KTA, pending the announcement of a capital raising.
Investors with any query or interested in participating in the capital raising, could contact KTA’s Executive Chairman Colin Locke on +61 457 289 582.
Impressive Stock Performance
Before going into a trading halt, KTA shares were trading at a price of $0.054. In the past three months, KTA’s share prices have increased by 184.21% as on 11 October 2019. Impressively, in the last one month alone, the stock has increased by around 157.14%.
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