Krakatoa Resources Ltd (ASX:KTA) has delivered a maiden mineral resource estimate (MRE) of 101 million tonnes at 840 parts per million (ppm) total rare earth oxide (TREO) for the Tower prospect at its flagship Mt Clere Project in Western Australia.
The prospect has the potential to grow substantially in size and scale as the MRE only incorporates 20% of the conceptual exploration target of 57-481 million tonnes at 530-1,050 ppm TREO.
“This is an outstanding result and a game-changer for Krakatoa and our shareholders," Krakatoa’s chief executive officer Mark Major said.
"It has only been seven months since we made the initial discovery at Tower and now the team has delivered a robust maiden resource and we still have a significant exploration target to chase.”
Tower Project MRE and exploration target.
The first prospect drilled of many prospective clay-hosted rare earth element (REE) targets, the Tower area is highlighted by thick zones of near-surface mineralisation.
The MRE incorporates the results from two drilling campaigns completed over the past 12 months at Mt Clere, with 40% classified in the indicated category and 60% in the inferred category.
Krakatoa will now begin key development workstreams at Tower and initiate discussions with potential end-users, offtake partners and industry groups for potential funding, development and downstream opportunities.
Unique opportunity
“We will now continue to explore the Tower area further and look to increase the resource confidence as well as size, plus continue our regional exploration focus.
“In parallel, we will advance the ongoing technical and metallurgical studies and look to commence baseline environmental and social studies with the vision to move toward production as quickly as possible.
“We believe Tower and the wider area presents a unique opportunity to develop a project of size and quality with key attributes highlighted by free-digging dirt, low strip ratio, extensive mineralised thickness and in this area that doesn’t compete with agriculture for land use.”
Room to grow indicated category
The Tower deposit is within one granted exploration licence, EL09/2357, in the Errabiddy-Mt Clere region of the north-western margins of the Yilgarn Craton in Western Australia. The tenement is one of 11 held in the area by the company.
This deposit is interpreted to be an ionic adsorption REE clay-type deposits, similar to those in South China, Uganda, Madagascar, Myanmar and others within South America.
In total, the MRE is based on 139 vertical aircore holes for 3,848 metres of drilling, with 109 drill holes over the central and south areas of the Tower project and only 30 at Tower West.
The Tower West drill holes are not included in the MRE, which was prepared by IHC Mining.
The core area is covered by about 200 metre-spaced drill holes, which Krakatoa said allowed it to move towards a higher indicated status within that area.
Tower Project JORC classification plan with drill hole and cross sections shown.
Current work programs
Krakatoa is awaiting the laboratory results from the recent scout reconnaissance auger drilling on the downslope terraces to the southwest of the Tower plateau and areas around the Tower West prospect to determine the extent of mineralisation for future resource drilling possibilities.
It is also awaiting the metallurgical diagnostic test work currently being undertaken by Australian’s Nuclear Science and Technology Organisation (ANSTO) before deciding on additional and extended metallurgical testing programs to expand the distribution area.
For now, the outcome of the MRE has demonstrated that the company has substantial mineral resources which can be used to move the project into economic studies.
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