Summary
- June 2020 quarter has seen remarkable progress for Krakatoa Resources (KTA) at its 3 Gold projects.
- During the quarter KTA concluded the following
Belgravia Deep Cu-Au Porphyry Targets:
- An aircore and DGPR program at the Bell Valley Target Area
- An Aeromagnetic program across the entire Belgravia Project
- A DGPR program – Belgravia Project, Sugarloaf Target Area
Turon Shallow High Grade Targets:
- Thirty-year-old historical RAB drilling concluded north of the Quartz Ridge Mine, highlighted numerous highly anomalous gold intercepts with results up to 10m @ 1.64g/t gold;
- At the Britannia prospect, two critical DGPR anomalies believed to coincide with structurally controlled quartz veining;
- KTA has received drilling approval from the NSW Resources Regulator to conduct a diamond drill program at the Turon Project, and drilling is scheduled to commence in early August.
Rand Acquisition: 40km Corridor Containing Historic Very High Grade Mines
- Via non-dilutive application (subject to grant)
Gold exploration company, Krakatoa Resources Limited (ASX:KTA) has made significant progress at its projects in the Lachlan Fold Belt, NSW. During the quarter ended June 2020, KTA conducted aggresive progressive activities with a firm focus on cost affective, systematic exploration at its 100% owned Belgravia Porphyry and Turon Gold Projects.
Belgravia Exploration Target Area (Source: ASX Announcement)
Covering an area of 80km2, Belgravia Porphyry Project is located in the central part of the Molong Volcanic Belt (MVB), Lachlan Fold Belt and contains six targets with considerable exploration potential for porphyry Cu-Au and associated skarn mineralisation.
Related: Porphyry Prospectivity Confirmed at KTA’s Belgravia Project
Aircore Program at Bell Valley Target Area of Belgravia Project
At the beginning of the quarter, KTA received results from the drilling program conducted over the Bell Valley Target, which was aimed to test beneath Tertiary basalt, and locate patterns of zoned alteration and mineralisation halos related to porphyry-style gold and copper systems, like the ones found at Cadia.
On 22 April 2020, KTA declared gold and multi-element assay results from the aircore drilling program, which interpreted to have further heightened the prospective nature of the Bell Valley area and presented the following findings:
Aeromagnetic Program Generates Successful Outcomes
High-resolution drone survey at Bell Valley returned successful outcomes, post which, KTA fast-tracked to finalise a high-resolution aeromagnetic survey across the entire Belgravia Project. Moreover, significant gold-copper porphyry potential was highlighted through the detailed aeromagnetic survey interpretation at the Bell Valley Target Area within the Belgravia Project, including the following:
Processed Aeromagnetic Imagery & Interpreted Magnetic Low Target Features
Source: KTA June 2020 Quarterly Activities report
Completed DGPR program at Bell Valley Area
KTA concluded a deep ground penetrating radar (DGPR) survey with an objective to map the sub-surface geology and provide evidence of favourable hosting environments for mineralisation at Bell Valley Target Area at Belgravia Project.
A total of 15,373-line metres across 13 lines were acquired under the survey, and the surveyed lines were designed to lie over earlier shallow aircore drilling. This was believed to be used to help and restrict the interpretation in tandem with geological, structural, and surface geochemical data.
Results from the DGPR revealed several anomalous zones, where three of the composite DGPR anomalies lie over or adjacent to earlier delineated and reported interpreted porphyry-style Bella and the Lara 1 and 2 targets.
Significantly, KTA believes that DGPR supports high-grade copper-gold veins possibly stemming from a porphyry source forming a secondary target at shallower levels. Additionally, the economic potential for copper-gold mineralisation correlated with a porphyry in the area is believed to lie at depth >200m.
Next in line is an induced polarisation (IP) survey to locate zones of sulphide mineralisation as detected by DGPR at Bella and the Lara's with a focus on upcoming diamond drilling at these prospects.
DGPR Program at Sugarloaf Target Area Identifies Seven Anomalies
In addition to the DGPR survey at Bell Valley Area, KTA concluded a DGPR survey totalling 5,810m across five lines at Sugarloaf target that identified seven anomalies, forming two separate polygons striking over 900m and 500m respectively.
Furthermore, DGPR extends its support to the earlier recognised prospective nature and positions the area as drill-ready, noting the interpreted polygons:
- Are located within a distinctive magnetic low feature considered characteristic of a porphyry-style deposit such as the Copper Hill (890koz Au & 310kt Cu)
- Capture previously announced anomalous rock chips, including the float sample grading 5.19g/t Au and 1.73% Cu
- Include significant interpreted faults and shears featuring recognised proximal alteration (silicaflooding and jasperoid)
- Coincident with a previously identified NE-trending linear feature
DPGR survey (white lines) across the Sugarloaf Target Area (Source: ASX Announcement)
Historical Review at Turon Project Identifies Two Separate North-Trending Reef Systems
Covering an area of 120km2, the Turon Project contains at least two separate north-trending reef systems in Quartz Ridge and Box Ridge, as highlighted by the detailed review of historical work during the June quarter.
Each of these comprises several historic showings developed as shafts, adits and drifts that strike over 1.6km and 2.4km respectively.
Significantly, numerous highly anomalous gold intercepts with results up to 10m @ 1.64g/t gold from the surface to end of the hole through the thirty-year-old historical RAB drilling completed north of the Quartz Ridge Mine.
Details at: Krakatoa Resources Finds Shallow Gold Targets at Britannia Mine, Drilling Planned for July
Two critical DGPR Anomalies Identified Across Britannia Mine
KTA completed a DGPR survey at the Britannia Mine comprising of eight lines for 3,448 metres, interpretation across which identified two critical DGPR anomalies believed to coincide with structurally controlled quartz veining.
The relative depth of these distinguishes the anomalies with a shallower anomaly that directly corresponds with the historic Britannia workings, and a deeper anomaly offset from the known mineralisation which remains untested.
Details at: Krakatoa Resources Finds Shallow Gold Targets at Britannia Mine, Drilling Planned for July
KTA Lodges Application with The NSW Resources Regulator
KTA has received drilling approval for an application lodged with the NSW Resources Regulator seeking approval for up to 1,770m of diamond drilling at numerous prospective shallow gold targets located within the Box Ridge and Quartz Ridgeline of workings.
KTA has appointed a drilling contractor, and ground preparations are in progress with drilling planned to begin in early August.
Detailed discussion at: Krakatoa Delivers Diamond Drill Program at Turon Gold Project, Stock Surges Beyond 18%
At the fund-raising front, KTA raised $2,400,000 through the issue of 30,000,000 ordinary shares at $0.08 per share during the quarter and its cash and cash equivalents at the end of period stood at $686,000.
Details at: Krakatoa Resources Limited Concludes Significantly Oversubscribed Share Placement to Advance Projects
As on 30 July 2020, KTA stock was noted at $0.087 with a market capitalisation of $21.39 million and has increased by ~177% during the last three months till 29 July 2020.
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