Value pick in the Lachlan Fold Belt on target for maiden drilling
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Special Report: Krakatoa Resources’ plan to be the next explorer to unearth a major copper-gold discovery in New South Wales’ Lachlan Fold Belt is gathering serious momentum, with the company announcing a maiden drill programme after defining multiple targets at its Belgravia Project.
Krakatoa (ASX: KTA) moved into the Lachlan Fold Belt, home to Newcrest Mining’s giant Cadia Valley operation, Alkane Resources’ recent market-moving Boda discovery and several other significant gold and copper-gold deposits, with the acquisition of the Belgravia exploration licence in September last year.
The Company began conducting fieldwork on the project almost immediately and in November flew an aeromagnetic survey over a portion of the ground known as Bell Valley.
In an announcement to the ASX this morning, Krakatoa said analysis of the data collected from the survey had identified several magnetic and structural features demanding immediate investigation due to their geological similarity to the nearby Copper Hill and Cadia Valley copper-gold deposits.
It added that field mapping and information from historical exploration supported “several opportunities” within the Bell Valley area, which sits within the Copper Hill Igneous Complex.
To follow up the identified targets, KTA has lodged an application to undertake a “high impact” 87-hole aircore drilling program, which will begin as soon as approval has been received.
Aircore drilling is often used in first-pass exploration programs and typically aids in the prioritisation of prospects within a broader project.
Krakatoa shares closed at 3.7c on Thursday, valuing the company at $6.3 million.
Executive chairman Colin Locke said the outcomes of these findings present an obvious leverage opportunity for investors.
“Right now, Krakatoa offers the best value in the Molong Volcanic Belt compared to the handful of other ASX listed peers operating there.
“The Belgravia ground holds as much copper-gold discovery potential as any in the wider Lachlan Fold Belt and the targeting exercises we have just completed demonstrate that,” he said.
“In assessing the geology and the data returned from the drone survey, there are notable similarities to Cadia, which today is Australia’s largest operating gold mine by some margin.
“Shareholders can also take confidence from our ground being right next to the Copper Hill Project, which has well documented high grade shallow drilling intercepts and established deposits.”
Copper Hill, which abuts the Belgravia licence to the south-east, contains a Mineral Resource of 87 million tonnes at 0.32% copper and 0.27 g/t gold.
Only limited exploration has been conducted on the project in recent years, but earlier drilling produced some stellar intercepts that at least rate alongside those marking Alkane’s discovery of Boda last year.
In 2014 Copper Hill owner Golden Cross Resources drilled 155 metres grading 0.93% copper and 2.5 g/t gold from a depth of 11m, including 60 metres at 1.83% copper and 5.4 g/t gold from 11 metres, and 178 metres at 0.48% copper and 0.94 g/t gold from a depth of 92 metres.
The discovery hole at Boda, which prompted a significant run on Alkane stock, was 502 metres at 0.2% copper and 0.48 g/t gold from 211 metres.
In addition to its planned aircore program, Krakatoa has applied for a grant through the NSW Government’s New Frontiers Cooperative Drilling Program to co-fund a 600-metre diamond drill hole at the Bella prospect at Belgravia.
The Company expects to find out whether its application has been successful later this quarter.