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Highlights
- Acquisition Announcement: Krakatoa Resources secures an exclusive option to acquire up to 80% of the Zopkhito Antimony and Gold Project in Georgia.
- Significant Resource Potential: Foreign estimates indicate 225,000 tonnes of antimony at 11.6% grade and 7.1 million tonnes of gold at 3.7 g/t.
- Investor Confidence: Share price surged over 22%, reaching 1.4 cents during early trading on December 9.
- Fundraising Success: $1.28 million raised via placement, with $100k contributed by company directors (subject to shareholder approval).
Krakatoa Resources Limited (ASX:KTA) announced a binding agreement with JSC Caucasus Minerals (JSCCM) to acquire up to an 80% interest in the Zopkhito Antimony and Gold Project, marking a significant milestone for the company. The project, located in the Racha region of Georgia, is considered globally significant for its high-grade antimony and gold resources.
Key Project Highlights
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Antimony Resource: 225,000 tonnes at 11.6% Sb, equivalent to 26,000 tonnes of contained antimony.
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Gold Resource: 7.1 million tonnes at 3.7 g/t, yielding an estimated 815,119 ounces of gold.
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Exploration History:
- 27 kilometers of exploration tunnels have outlined substantial mineralization.
- Only 16 out of 60+ known mineralized veins have been studied, presenting considerable upside for further exploration.
- Continuity of veins extends up to 1 km, with geophysical surveys confirming that the system remains open.
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Recent Results:
- Channel sampling in 2019 confirmed high-grade antimony of 10.4% over 0.98 meters.
- Metallurgical test work in 2018 achieved a 56% antimony concentrate with optimization potential.
Strategic Significance
Antimony, a critical mineral used in energy storage, flame retardants, and military applications, is listed as a critical commodity by many nations. The acquisition aligns Krakatoa with global efforts to secure sustainable sources of this essential resource.
The project’s gold resource further strengthens its value, adding a robust economic component to the Zopkhito project.
Funding and Market Impact
To support this acquisition and ongoing exploration, Krakatoa raised $1.28 million in a placement. Company directors contributed $100,000 (subject to shareholder approval), underscoring confidence in the project’s potential.
The announcement sparked a 22% surge in Krakatoa’s share price, reflecting strong investor interest in this transformational opportunity.
Next Steps
Krakatoa plans to focus on advancing exploration and optimizing the resource potential of Zopkhito. The company is also preparing to explore unexplored veins and conduct further geophysical studies to expand the resource estimate.
