Perth-based Krakatoa Resources Limited has reported “extremely encouraging” results for the “first real” sediment survey completed across the company’s highly prospective Mt Clere Project, located in Western Australia’s rare-earth-rich Yilgarn Craton.
The ASX-listed company, using modern techniques, has uncovered highly anomalous rare earth elements containing up to 8320 parts per million of total rare earth oxide and similarly oxide-rich high-value rare earth magnet elements.
Krakatoa is committed to the systematic exploration of around 2310 square kilometres of Mt Clere’s highly prospective geology, while the rare earth market rebounds with prices expected to rise by 7.5 annually until at least 2026.
“The results of the stream survey are extremely encouraging,” chief executive Mark Major said.
“The presence of anomalous REE’s and Ni-Cu-PGE pathfinder elements is exciting and shows the vast potential of this area.
“We have identified various localised catchment areas which have exhibited significant drainage anomalism, including numerous samples with over 6,000ppm TREO and abundant highly anomalous Ni-Pb-Cu-Cr-Zn chemical signatures.
“We are very thrilled about the E09/2537 tenement results and are now eagerly awaiting the northern tenements stream surveys and reconnaissance rock sampling. These samples are in the laboratory undergoing analysis. Krakatoa is engaging a team of geologists and consultants to follow up these anomalies and provide geophysical support. This will initially entail intense field sampling, mapping and AEM surveys with the aim to be drilling before the end of the year.”
Krakatoa will commence immediately with field mapping and intensive soil and rock survey, along with airborne electromagnetic and electron paramagnetic resonance surveys.
The company will also complete mineral petrology identification, target selection for drill testing and ionic geochemical sampling over prospective areas.
In late trade today, the company’s ASX-listed shares were up nearly 6 per cent at 5.7c.