Krakatoa Resources Ltd (ASX:KTA) has soared on uncovering up to 4.3% lithium in rock chip samples taken during a geochemical sampling program at King Tamba Project, boosting the lithium potential of the project 80 kilometres northwest of Mount Magnet in Western Australia's Mid-West
Multiple rock-chip samples returned results greater than 2% lithium (Li2O) at the newly-defined Wilsons Prospect, including up to 1.7% rubidium (Rb2O) and 0.5% caesium oxide (Cs2O).
These results have prompted a strong response from investors in early ASX trading, with shares as much as 135% higher to $0.054 and more than 75 million changing hands within 40 minutes.
A total of 61 rock-chip and 251 soil samples taken across the project in April have identified an 800-metre mineralised zone enriched in lithium-caesium-rubidium with elevated tantalum-niobium, which is open to the north and south.
Given the success rate, Krakatoa plans to expand the sampling coverage across the greater King Tamba tenement package in the coming months.
Showing potential
The newly-identified Wilsons Prospect had previously seen minor shallow reverse circulation (RC) drilling for tantalum by Tantalum Australia in 1999-2000. However, the samples were never tested for metals such as lithium, caesium and rubidium.
This prospect outcrops over 250 metres and appears to be three to four metres wide with a shallow southeasterly dip.
It hosts a series of pegmatite exposures to the southwest of the historic tantalum processing plant but it is unclear at this stage which minerals are hosting the lithium mineralisation.
Krakatoa has commenced studies to determine which minerals are hosting the elevated lithium within the rock samples.
Mica dominant greisen from the Wilsons Prospect outcrops (pen for scale).
More work coming up
Krakatoa chief executive officer Mark Major said: “The results are very encouraging, with a high-tenor multi-element soil anomaly present across multiple sample lines and even more impressive it is supported with a series of six samples from an outcropping pegmatite target area returning Li2O values in excess of 1%, with a peak result of 4.3% Li2O from sample KS04381 at the newly-defined Wilsons Prospect.
“This prospect sits in line with the soil anomaly and is flanked by them.
“This area is surprisingly just a few hundred metres south of the historical mine zone. Other areas have also been investigated and we look forward to uncovering more lithium-dominated zones to target with drilling.”
Wilsons Prospect sample locations, mapped and interpreted pegmatite outcrops.
Forward plan
The company has begun preparations to drill-test the lithium potential of King Tamba below surface.
A program of works has been submitted and approved by the WA Department of Mines.
Drilling sites have been prepared and discussions have begun with drilling contractors to determine availability and other details.
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