Krakatoa Resources Ltd Licenses Potential Rare Earths Property to Rand

The Company’s exploration raison d’être is to perform shallow drilling in areas of known and interpreted intrusions within granted concessions, testing for REE enrichment.

Krakatoa Resources Ltd (ASX:KTA) has been awarded an exploration license – EL9366 or Urana – covering an additional 2,241 square kilometers across the Rand project in the Riverina area of ​​southern New South Wales.

In late 2021, Krakatoa discovered elevated rare earth elements (REE) associated with weathered intrusions on the Bullseye magnetic targets under the EL9000 license.

Drill results revealed strong intersections of Total Rare Earth Oxides (TREOs), including:

  • 11 meters at 1,223 parts per million (ppm) TREO from 43 meters;
  • 7 meters at 1,285 ppm TREO from 42 meters to less than 28 meters at 598 ppm TREO from 38 meters to the end of the hole;
  • 4 meters at 1424 ppm TREO from 35 meters within a radius of 12 meters at 633 ppm TREO from 31 meters; and
  • 8 meters at 1230 ppm TREO from 9 meters; within 35 meters at 579 ppm TREO from 1 meter to the end of the hole.

Underexplored area

Recognizing the district’s potential to host large REEs, Krakatoa applied for and has now been granted EL9366.

Last year’s air core program confirmed the magnetic anomalies to be three separate intrusive bodies, all concealed by Cenozoic cover.

Granites in the wider project area occur as rare prominent hills or have been interpreted as cover sequences by geophysical techniques, primarily magnetic.

The recently completed East Riverina Mapping Project by the NSW Geological Survey studied the intrusions surrounding the Rand Project and defined four main intrusive groups, noting the potential association of REEs with the Devonian granites identified by the study.

The widespread sediment cover has hampered bedrock exploration and as a result the area is underexplored for most commodities.

Krakatoa’s 2021 exploration campaign covering the EL9000 building has defined several new areas and intrusion types, most of which were previously unrecognized.

The upside is that there are clearly more intruders in the area than previously thought.

Metallurgical tests to define enrichment

Krakatoa initiated geochemical and petrographic studies to classify and understand the different types of intrusions, especially those associated with elevated rare earths.

Of particular interest is the accumulation of REE in clay-rich weathered zones above and adjacent to intrusions that may form ion-adsorbed clay deposits. This type of deposit is an attractive exploration target because development, capital and operating costs tend to be low compared to hard rock deposits.

The Company’s rationale for exploration from here is to perform shallow drilling in areas of known and interpreted intrusions within the granted claims, testing upper portions of the weathering profile for enrichment in ETR.

This work should define what REE enrichment has occurred and to what extent.

In December last year, selected air-core impact chip samples from four of the Bullseye 2021 magnetic target drill holes were sent for metallurgical testing.

These samples are leach tested using ammonium sulfate and weak acids to determine REE levels.

In the meantime, regional reconnaissance drilling will be carried out through the alteration profiles developed above the numerous intrusions on EL9366. Drilling is expected to begin in mid-2022, subject to access and rig availability.

About the Rand Project

The Rand project covers an area of ​​580 square kilometres, centered approximately 60 kilometers NNW of Albury in southern New South Wales.

The project has a SW trending shear zone that crosses the entire building lot forming a distinct structural corridor approximately 40 kilometers in length.