Australian copper-gold explorer Krakatoa Resources (ASX:KTA) has defined a new lithium outcrop following a phase two rock sampling program at its wholly owned King Tamba Project in Western Australia.
The company, which has a $13.21 million market capitalisation, says the new ‘Loader’ prospect is situated about 125m southeast of Wilsons prospect, where previous rock chips returned up to 4.3% lithium oxide (Li2O).
Krakatoa reports rock chip results from this new Loader prospect have returned grades of up to 1.7% Li2O. These results are noted to also contain additional ‘highly elevated’ lithium-caesium-tantalum (LCT) anomalism, with results up to 2.92% Li2O.
The company reports further fieldwork has also uncovered another new nearby train of greisen-altered pegmatite float, named the MGM prospect, with assays pending. This train is interpreted to extend northeast and southwest and trend about parallel to the strike of the Wilsons pegmatite.
Further, field checking completed on this new target has revealed a greisen-altered pegmatite float strung out in a linear fashion, leading Krakatoa to the belief there may be another previously unmapped pegmatite below shallow cover.
As a result, Krakatoa announces it has prioritised an exploration program and has also expanded the target areas for exploration, having secured funding via a $3.78 million placement and defined the Wilsons prospect.
Meanwhile, other samples gathered from near the remnant open pit are reported to have demonstrated the presence of a ‘significant’ niobium and ‘high-grade’ tantalum zone, with a peak assay returning 2,387ppm Ta2O5.
With all of these achievements, Krakatoa Resources announces it has begun preparations for the drill-testing of the subsurface lithium prospects in King Tamba, with a program of works (PoW) being submitted and approved by the Western Australian Department of Mines, Industry Regulation and Safety (DMIRS).
Heritage approvals are currently awaited while Krakatoa engages in discussions with drilling contractors.
Speaking on the results, Krakatoa Resources Chief Executive Officer (CEO) Mark Major says: “More encouraging results continue to highlight the prospectivity of the new Wilsons and Loaders high-grade lithium rock chip discoveries with a potential third discovery at MGM.
“More encouraging results continue to highlight the prospectivity of the new Wilsons and Loaders high-grade lithium rock chip discoveries”
Having mineralised pegmatite systems repeated within “a stone’s throw” of each other is a favourable key aspect when considering a suitable tonnage development opportunity.”
Krakatoa Resources is an ASX-listed explorer committed to the acquisition of mineral and energy projects and the exploration for copper-gold within the world-class Lachlan Fold Belt.
The company’s King Tamba project is located 80km northwest of Mount Magnet in Western Australia and lies within the Dalgaranga Greenstone Belt. The project contains the Dalgaranga Open Pit, where historical open pit production of 6,434kg of Ta2O5 occurred between 2001-2003.
Krakatoa Resources had $1 million cash at hand as of 31 March 2023, as stated in its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Krakatoa Resources Ltd
