Krakatoa Resources Identifies Several Anomalous Zones in the Bell Valley; DGPR Survey Reinforces Au-Cu Prospects

Summary

• Krakatoa Resources identified several anomalous zones in the Bell Valley Target Area through the results from the DGPR survey.
• Results validated the previously announced Bella, Lara 1 and 2 anomalies and generated a new zone in the southwest.
• KTA believes that the DGPR reinforces high-grade copper-gold veins possibly stretching upwards from a porphyry source, creating a non-primary target at lesser depths.
• KTA looks forward to completing an Induced polarisation survey to focus future diamond drilling at these prospects.

Aggressive gold exploration company, Krakatoa Resources Limited (ASX:KTA) has been engaged in exploration activities in the world-renowned Lachlan Fold Belt, NSW across its projects, namely Belgravia Porphyry Project, Turon Gold Project and Rand Gold Project.

Lately, KTA has identified several critical anomalies from its recent Deep Ground Penetrating Radar (DGPR) survey across the Bell Valley Target area in the Belgravia Project. The anomalies are associated with and are in proximity with the earlier announced interpreted porphyry-related targets.

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Other than this, the DGPR survey revealed a new anomaly situated southwest of Bella towards the Copper Hill deposit.

Kalkine Image (Data Source: KTA's ASX Announcement)

Further, the DGPR anomalies at Bella and Lara 1 and 2, notably coincide with drill-indicated anomalous gold and multi-element geochemistry. These anomalies also correspond with a pervasive magnetic low feature supposed to affect the location of mineralisation at the adjoining Copper Hill deposit.

DGPR survey lines and anomalies on processed Aeromagnetic Imagery (Source: ASX Announcement)

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Details About the DGPR Survey

The DGPR survey was undertaken by Loza Radar Australia at the Belgravia Project, to draw the sub-surface geology and offer proof of favourable hosting environments for mineralisation. Some highlights of the DGPR survey conducted at the Bell Valley prospect are as follows:

• A total of 15,373-line metres across 13 lines were acquired under the survey at Bell Valley.
• Radiation of ultra-wideband electromagnetic pulses piercing the subsurface medium and registration of the reflected signals born at the medium interfaces or buried objects form the basis for Data collection.
• The Bell Valley survey used only Low-Frequency Systems utilising a 6-metre antenna x 25 Mhz with specific acquisition parameters.
• In order to help and restrict the interpretation in tandem with geological, structural, drilling and surface geochemical data, the surveyed lines at Bell Valley were intentionally designed to lie over previous shallow air core drilling.

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Several Key Anomalies Identified From The Survey

The DGPR survey at Bell Valley identified several key anomalies, of which each anomaly is believed to indicate irregular quartz stockworks, sheeted quartz veining and/or disseminated sulphides plausibly related with Late Ordovician porphyry mineralisation styles. Moreover, additional styles present might include structurally controlled quartz veining.

• Three of the composite DGPR anomalies lie over or adjacent to previously delineated and reported interpreted porphyry-style Bella and the Lara 1 and 2 targets.
• The anomalies at Bella and the Lara 1 and 2 coincide directly with drill-indicated mineral alteration and anomalous multi-element geochemistry, key geological features.
• These features include interpreted structure or lithological contacts, interpreted discrete magnetic features.

Further, KTA also discovered gold mineralisation indicated through drilling in quartz gravels preserved beneath Tertiary basalt coinciding with the western DGPR anomaly and lies just north of the eastern Bella anomaly.

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In addition to this, a composite DGPR anomaly is also believed to lie in the southwest of the Bell Valley target area, which is the closest to Copper Hill.

DGPR Validates High-Grade Copper-Gold Veins

KTA believes that the economic potential for Cu-Au mineralisation associated with a porphyry may lie at depth (>200m) in the Bell Valley area. Moreover, KTA is of the view that the DGPR validates high-grade copper-gold veins potentially extending upwards from a porphyry source establishing a secondary target at lesser depths.

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Moving ahead, KTA looks forward to completing an induced polarisation (IP) survey at Bella and the Lara’s to discover sulphide mineralisation zones as found by DGPR. Importantly, the IP shall lay emphasis on diamond drilling in upcoming times at these prospects.

On 27 July 2020, KTA stock was noted at a price of $0.097, with a market capitalisation of $24.13 million (AEST: 12:00PM). The stock has generated over 223% returns for its shareholders during the last three months till 25 July 2020.