Krakatoa Secures Historic High-Grade Gold Mines in the Lachlan Fold via Non-Dilutive Acquisition, Stock Hits Multi Year Highs

Summary

• Application made for the Rand Project, covering a substantial area of 580km2 in the Central Lachlan Fold Belt, NSW
• The Rand Project is prospective for multimillion-ounce mineralisation-styles, including shear-hosted and intrusion-related gold systems like De Grey's Mallina Gold Project
• The Project captures the Bulgandra Goldfield which comprises several shallow mines which historically produced gold at very high grades (up to 265g/t gold or 8.53oz per ton)
• Rock and mullock samples across limited outcrop returned anomalous results including:
  • 9.60g/tgold,31g/tsilver (WelcomeFindReef)
  • 6.90g/tgold (ShowDayReef)
  • 6.50g/tgold (ShowDayReef)
  • 4.13g/tgold (GoombarganaHill)
• The Project covers a 40km structural corridor that transects mineralised Silurian and Devonian granite and Ordovician sediments, which are masked by colluvium
• The Company continues its strategy of dilution minimising acquisitions within the Lachlan Fold Belt, focused on gold +/- copper

Aggressive gold exploration company, Krakatoa Resources Limited (ASX:KTA) has also recently filed an application with the New South Wales Resources Regulator to perform a diamond drill program at its Turon Project in the Lachlan Fold Belt (LFB).

Details at: Krakatoa Delivers Diamond Drill Program at Turon Gold Project, Stock Surges Beyond 18%

Application for the Rand High Grade Gold Project

KTA has achieved another significant milestone in the development of its project portfolio. On 6 July 2020, KTA announced that it has substantially expanded its landholding in the Lachlan Fold Belt through direct license application made for the Rand Project, covering four contiguous exploration licence applications over a combined area of 580km² in the Central Lachlan Fold Belt, NSW.

The Rand Project is said to be highly prospective for multimillion-ounce mineralisation-styles, including shear-hosted and intrusion-related gold systems like De Grey's Mallina Gold Project, and moreover, the Project captures the historical Bulgandra Goldfield, which indicates the potential of the project for shear-hosted and intrusion-hosted gold.

Related: Krakatoa Resources Announces Results from RAB drilling at Quartz Ridge Mine, Stock Up by 25%

KTA Stock Skyrockets

Post-announcement, KTA stock skyrocketed on ASX. At AEST 02:58, KTA stock jumped up by 37.5% and was noted at a price of $0.099.

In the last five days till 03 July 2020, KTA has returned 94.59% returns to its shareholders and has a market capitalisation of 15.75 million.

Project Background

Exploration at the two reefs was carried out by Transit Mining Pty Ltd between 1985 to 1989 where fourteen rock chip samples were collected during geological mapping and returned strongly anomalous results:

• Au (including 9.6ppm, 6.9ppm and 6.5ppm)
• Ag (to 31ppm)
• As (to 2410ppm)
• Bi (to 40ppm
• Pb (to 5100ppm)

Results from historical reverse circulation drilling showed that gold is being leached from within the upper saprolite and reflected that adequate drilling depths were not achieved, and no subsequent exploration work was conducted.

More significantly, KTA believes that the Bulgandra Goldfield is largely untested.

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

Mineralisation and Geology

The Project lies in the Tabberabbera Zone of the Central Lachlan Fold Belt between two regional shear systems, including:

• NW-trending Kancoona shear zone in the west
• north-trending Kiewa shear zone to the east

Further, the entire tenement package is intersected by a southwest-trending shear zone connecting the two regional shears, and the shear zone separates into numerous secondary splays producing a distinct structural corridor ~40 km in length.

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

Geology, Historical Workings And Chip Sampling, Rand Project (Source: Company's Report)

In the Central Lachlan, gold mineralisation is spatially related to the granitoid bodies, their contact aureoles and associated regional structures. Moreover, gold mineralisation was also most likely introduced with the emplacement of the I-type Jindera granite during the Tabberanean Orogeny, making Rand a prospective area for the intrusion-related gold deposits.

More importantly, in the Bulgandry Goldfield, gold mineralisation is hosted in quartz lodes in a regionally persistent shear zone, where mineralisation is best characterized by the high-grade Show Day Reef group of workings which directly lie over an interpreted primary shear.

Plan to Undertake Comprehensive Review

KTA is optimistic that the gold occurrences at Rand fit within the classification of significant gold deposits known as Intrusion-related gold systems and granite or sediment-hosted sheeted veins and stockworks like those already identified at Bulgandra are considered characteristic of IRGS systems.

The Company is highly optimistic about obtaining the exploration licence for the Rand Project and expects that the same shall be granted within three to six months.

Moving forward, KTA plans to undertake a comprehensive review of the concluded historical work and publicly available datasets to create targets for field reconnaissance.