Exploration Uncertainty Looms as Krakatoa Prepares Drilling at Zopkhito and Mt Clere
Krakatoa Resources has revealed promising extensions of antimony-gold mineralisation at its Zopkhito Project in Georgia, supported by recent geophysical modelling, while securing a drilling grant for its Mt Clere Project in Western Australia.
- Option to acquire 80% interest in Zopkhito Antimony-Gold Project maintained
- Induced polarisation (IP) geophysics indicates significant mineralisation extensions at depth and along strike
- Foreign resource estimate includes 225Kt antimony at 11.6% and 7.1Mt gold at 3.7g/t
- Western Australian Government grants $220,000 for Mt Clere drilling program
- Company ends quarter with $1.29 million cash on hand and ongoing exploration activities
Exploration Momentum at Zopkhito
Krakatoa Resources Limited (ASX: KTA) has reported significant progress during the March 2025 quarter at its flagship Zopkhito Antimony-Gold Project in Georgia. The company retains an exclusive option to acquire an 80% interest in the project, which spans 1,779 hectares in the Racha region, a historically mineral-rich area with extensive Soviet-era underground workings.
Recent exploration efforts have focused on integrating historic induced polarisation (IP) geophysical data with topographical modelling, revealing potential extensions of the antimony-gold mineralised system both at depth and along strike. This modelling supports the hypothesis of parallel mineralised veins yet to be explored, highlighting substantial upside beyond the existing resource footprint.
Resource Estimates and Historical Context
The project hosts a foreign resource estimate comprising approximately 225,000 tonnes of antimony at an average grade of 11.6%, alongside 7.1 million tonnes of gold-bearing material averaging 3.7 grams per tonne, equating to over 815,000 ounces of gold. These figures, while promising, are based on Soviet-era classification systems and have not yet been converted to JORC-compliant standards, introducing some uncertainty regarding their formal reporting.
Notably, only 16 of the more than 60 mineralised veins identified through 27 kilometres of underground adits have been sufficiently investigated to delineate resources, underscoring the project's exploration potential. Krakatoa plans to leverage this data to prioritise drill targets once permitting and access are secured.
Advancing Drilling at Mt Clere
In Western Australia, Krakatoa has secured a $220,000 grant from the state government’s Exploration Incentive Scheme to support drilling at the Stone Tank Prospect within the Mt Clere Project. The upcoming drill program aims to test two high-priority gravity anomalies identified in 2024, one coincident with a buried magnetic target and the other aligned with a structural lineament.
Preparations are underway for drilling to commence by mid-2025, marking a critical step in advancing the project’s exploration phase and potentially unlocking new mineralisation zones.
Financial Position and Corporate Governance
Krakatoa closed the quarter with $1.29 million in cash, supported by prudent management of exploration expenditure and receipt of government funding. The company also reported that all resolutions at its March 2025 General Meeting were passed without issue, reflecting stable shareholder support.
Exploration and evaluation expenditure for the quarter amounted to $134,000, primarily directed towards reconnaissance, sampling, and heritage negotiations, positioning the company well for upcoming drilling campaigns.
Looking Ahead
While no mining or production activities occurred during the quarter, Krakatoa’s focus remains firmly on advancing its exploration pipeline. The integration of historic and modern geophysical data at Zopkhito, combined with the imminent drilling at Mt Clere, sets the stage for potential resource upgrades and value creation.
Investors will be watching closely for drilling results and any subsequent JORC resource announcements that could materially impact the company’s valuation and strategic direction.
Bottom Line?
Krakatoa’s methodical exploration and strategic funding position it to unlock significant value from its antimony-gold assets in the coming quarters.
Questions in the middle?
- When will Krakatoa initiate drilling at Zopkhito, and what are the expected timelines for results?
- How soon can the foreign resource estimates be converted to JORC-compliant standards?
- What impact will the Mt Clere drilling outcomes have on the company’s near-term valuation and development plans?