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Krakatoa Resources Limited (ASX:KTA) winds up field exploration program at Sugarloaf

Summary

  • Krakatoa has announced the completion of the latest field exploration programs at the Sugarloaf Porphyry Cu-Au target in the Belgravia Project of NSW.
  • KTA concluded a small aircore (AC) program and large soil survey extension in June 2021. The aircore drilling programme included 37 holes for 295.5m while the soil survey comprised 594 samples.
  • Once the results of the latest aircore drilling and soil programs are received and interpreted along with the magnetic modelling and DGPR, Krakatoa will finalise drill holes to test deeper targets.

In an upbeat market update, Krakatoa Resources Limited (ASX:KTA) has announced the completion of the latest field exploration programs at the Sugarloaf Porphyry Cu-Au target in Belgravia Project of NSW. The Sugarloaf prospect is in the highly prospective copper gold province at the world-renowned Lachlan Fold Belt.

The Lachlan Fold Belt hosts Newcrest Mining Limited’s (ASX:NCM) Cadia valley operations, one of the largest and low-cost gold producing mines in Australia and globally, and the Boda prospect – one of the most prominent discoveries in the recent times by Alkane Resources Ltd (ASX:ALK).

LATEST NEWS: Latest results reinforce Krakatoa Resources’ (ASX:KTA) Rand Project potential

Furthermore, the project is located just 7 kms SE of the Golden Cross Resources’ Copper Hill Porphyry Cu-Au deposit, which holds mineral resources of over 890,000 ounces of gold and 310,000 tonnes of copper.

KTA concluded a small aircore (AC) program and large soil survey extension in June 2021. The aircore drilling programme included 37 holes for 295.5m and the soil survey of 594 samples. The drilling activity targeted the distinct magnetic anomaly in the middle of a large, demagnetized area, multiple soil and/or rock-chip (Au, Cu and Mo) anomalies, deep ground penetrating radar (DGPR) survey anomalies, structural zones and mapped alteration zones.

DID YOU READ: Krakatoa Resources (ASX:KTA) kicks off AC drilling at Sugarloaf 

Belgravia Project Source: KTA company announcement 7 July 2021

The aircore holes were drilled to relatively shallow depths of 1 to 15m averaging at 8m, since the regolith profile is thin at Sugarloaf. The original 2020 soil survey, which tested an area 850m east-west by 950m north-south, has now been expanded over the central magnetic low region and stretches over an area of 1.35km east-west by 1.65km north-south.

IMPORTANT UPDATE: Krakatoa Resources cranks up exploration at Rand and Mt Clere in May 

Recent aircore drillholes, soil survey and the 2020 DGPR survey lines Source: KTA company announcement 7 July 2021

Krakatoa interprets Sugarloaf to potentially represent a porphyry intrusion underlying the geophysical anomaly’s centre with potential skarn mineralisation along the faulted northwest contact.  Sugarloaf is also considered to be prospective for mesothermal vein (gold) deposits on splays to substantial faults, epithermal (gold-silver) and contact-metasomatic (skarn and carbonate-replacement styles) gold-base metals deposits.

The way forward

Once the results of the latest aircore drilling and soil programs are received and interpreted along with the magnetic modelling and DGPR, Krakatoa will finalise drill holes to test deeper targets.

KTA recognises the economic potential of the underlying copper-gold mineralisation associated with a porphyry formation at a depth of more than 200m. However, KTA also believes that the high-grade copper-gold veins may extend upwards from a porphyry source to form a secondary target at shallower levels, along with any deeper-seated leakage zones.

READ HERE: Krakatoa Resources (ASX:KTA) kicks off AC drilling at Sugarloaf

KTA traded at AU$0.055 a share on 7 July 2021 with a market capitalisation of AU$15.34 million.

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