Krakatoa promises a rare earth ‘perfect storm’

7 October 2021 11:01
Krakatoa promises a rare earth ‘perfect storm’

Krakatoa Resources Limited has struck it lucky, winning a ballot that allows the company to expand the ground around its Dalgaranga project in Western Australia.

The company has drawn first in a ballot over numerous graticular blocks within the application of exploration license 59/2503 that increases the exploration scope at Dalgaranga, northwest of Mt Magnet.

Five years ago, Krakatoa’s strategic move to the highly prospective rare-earth site seemed to be paying off amidst increasing global demand for battery-minerals to electric power vehicles.

“The company recognised the project’s potential back in 2016 when it acquired the initial Dalgaranga asset, which is known to have significant remnant material outside the historical shallow pit and discovered the presence of other critical metals. Since then, we have been securing additional ground, which is all prospective,” said chief executive Mark Major.

Krakatoa’s recent geophysical targeting at Dalgaranga has identified over 30 areas of interest, including abundant pegmatites. The company has a comprehensive data review and modelling of the previous drilling around the Dalgaranga open-pit to highlight near-mine targets.

“Our resolve in the potential of the Dalgaranga project has been strengthened with rising demand, prediction of further demand and price increases of critical and strategic metals,” Mr Major said.

The Perth-based explorer targets high-value metals. While Dalgaranga is prospective for several of them, it’s rubidium that has Mr Major most excited.

The rare soft silvery reactive metal, which has applications in electronics and medicine, isn’t actively traded on open markets. The rubidium market may be small, but it is lucrative, with the metal selling at over one million dollars a tonne.

“We now have a perfect storm. The Rubidium market is currently selling at around $1.4 million per tonne; tin, lithium and niobium have all increased significantly in price over the last five years, and tantalum is still holding strong,” Mr Major said.

“Mix this with the Dalgaranga pegmatites having some of the highest, if not highest, rubidium grade material in Australia.”

The company is currently completing modelling of the drilling data within the historically drilled areas and developing a drill program to delineate a critical metals resource potentially.

Krakatoa said it would continue defining regional targets with further mapping and geochemical exploration at the site.

The company’s Australian Stock Market listed price rose 7.8 pc today and is trading at 6.9c today (9:56 am GMT + 8 hours).

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