Krakatoa Launches 10,000m Drilling Campaign, Secures $3.1M Placement
Krakatoa Resources has launched a major drilling campaign at its Zopkhito Antimony-Gold Project in Georgia, backed by a $3.1 million capital raise, while also expanding its rare earths landholding in Western Australia.
- Maiden 7,000-10,000m diamond drilling campaign underway at Zopkhito
- Underground core sampling to convert foreign resource to JORC-compliant estimate
- Application lodged to expand Mt Clere rare earths project with Dingo Pass prospect
- Completed two-hole drilling at Stone Tank Nb-REE Prospect with assays pending
- Raised $3.1 million via placement to fund exploration and corporate activities
Exploration Momentum Builds at Zopkhito
Krakatoa Resources Limited (ASX, KTA) has significantly advanced its exploration efforts at the Zopkhito Antimony-Gold Project in Georgia during the September 2025 quarter. The company commenced a maiden diamond drilling campaign targeting 7,000 to 10,000 metres, deploying two rigs to systematically test mineralised veins identified in historical Soviet-era adits. This drilling aims to validate and expand the existing foreign resource estimate, which currently stands at 225,000 tonnes at 11.6% antimony and 7.1 million tonnes at 3.7 grams per tonne gold, translating to approximately 26,000 tonnes of antimony and over 815,000 ounces of gold.
Complementing the drilling, Krakatoa initiated underground core sampling within accessible adits to secure JORC-compliant samples. These efforts are critical to converting the historical foreign resource into a modern, internationally recognised mineral resource estimate, a prerequisite for advancing towards economic assessments and potential development.
Strategic Importance Amid Global Supply Constraints
Antimony is a critical mineral with strategic importance for energy storage, defence, and advanced materials, sectors where supply security is paramount. With China controlling approximately 90% of global antimony supply, Zopkhito’s location in Georgia offers a rare opportunity to diversify supply chains for the European Union and United States. Georgia’s investor-friendly environment, established mining framework, and advantageous trade agreements further enhance the project’s appeal as a secure, Western-aligned source of critical minerals.
Expanding Rare Earths Potential at Mt Clere
Beyond Zopkhito, Krakatoa has expanded its footprint in the rare earth elements (REE) sector through a tenement application over the Dingo Pass prospect, adjoining its Tower REE resource within the Mt Clere Project in Western Australia. This expansion could significantly increase the scale of the clay-hosted rare earth mineralisation, which already boasts a JORC-compliant resource of 101 million tonnes at 801 ppm total rare earth oxides (TREO).
The company also completed a two-hole, 1,000-metre diamond drilling program at the Stone Tank Nb-REE Prospect, partially funded by a $220,000 government grant. Assay results from this program are anticipated in the fourth quarter of 2025, potentially unlocking further value in this emerging REE target.
Corporate Moves to Support Growth
To fund its aggressive exploration agenda, Krakatoa secured firm commitments to raise $3.1 million through a two-tranche placement priced at $0.0105 per share, with attaching options exercisable at $0.02. The first tranche of 190 million shares was issued in September, with the second tranche of 105 million shares pending shareholder approval in late October.
Additionally, the company divested its Belgravia Project in New South Wales for $350,000, intending to reallocate capital towards its core projects. At quarter-end, Krakatoa held $1.753 million in cash, supplemented by the expected proceeds from the placement, positioning it well to sustain its exploration programs.
Looking Ahead
Krakatoa’s combined strategy of advancing drilling at Zopkhito, expanding rare earths landholdings, and prudent capital management underscores its commitment to becoming a significant player in critical minerals. The upcoming assay results and resource updates will be pivotal in shaping the company’s trajectory and its role in addressing global supply chain vulnerabilities.
Bottom Line?
Krakatoa’s next assay results and shareholder vote will be key milestones in validating its critical minerals ambitions.
Questions in the middle?
- Will the upcoming assay results confirm and expand the high-grade mineralisation at Zopkhito?
- How will the shareholder vote on the second tranche placement impact Krakatoa’s funding and exploration pace?
- What metallurgical processing methods will Krakatoa pursue to optimise rare earth extraction at Mt Clere?
