Krakatoa commences diamond drilling at Sugarloaf in central NSW

27 September 2021 14:32

Krakatoa Resources Limited commenced diamond drilling at their Sugarloaf Porphyry Target in central NSW on Monday. The diamond drill rig will initially drill two holes totalling approximately 1,100 metres to test a magnetic anomaly and see what lies below.

Located close to Molong, the Sugarloaf Cu-Au Porphyry target on EL8153, Belgravia Project, is situated on prime prospecting land, home to Australia’s best copper-gold region featuring the Cadia-Ridgeway, BodaKaiser, Copper Hill and Browns Creek deposits. Nearby is the successful GCR Copper Hill Porphyry Cu-Au Deposit producing gold and copper.

“This is a major milestone for the company and shareholders. We are thrilled to have reached this point after such a protracted process of landholder negotiations during which time we were only permitted to complete preliminary exploration work,” said Krakatoa chief executive officer Mark Major.

According to the company, the drill zone is a structurally bound magnetic low zone spanning 800 x 900 metres. At the centre is a central discrete magnetic high core measuring 400 x 200 metres. On Monday, Krakatoa said the magnetics and geochemistry at the site support the hypothesis for a blind, buried intrusive system at depth.

“We are now ready to test the magnetic anomaly and ascertain what level of system lies below,” said Mr Major.

The Perth-based mining company develops mineral and energy projects with a focus on high-value metals. At Sugarloaf, two holes will get drilled as an east-west oriented fence across the centre of the coincident magnetic low-zoned geochemical anomaly with proposed depths of 450 to 600 plus metres.

Krakatoa says they may drill a third shallow hole on the north-western margin. That hole will test for shallow structurally controlled gold and copper on a significant north-east trending structural, demagnetized feature featuring anomalous surface geochemistry.

Knowing that gold deposits are typically related to monzonite intrusive complexes is also encouraging Krakatoa to drill at Sugarloaf. These deposits often occur 400 – 600 metres below the surface, with the central porphyry core being a narrow “pin-head” intrusion. In addition, porphyry deposits tend to occur in clusters. Recent discoveries by other miners along the Molong Volcanic Belt confirm this.

The company’s Australian Stock Market listed price has risen 3.75 per cent today, trading at 8.3c today (1:00 pm GMT + 8 hours).

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