Krakatoa confirms high-value rubidium in pegmatites at WA King Tamba project

Krakatoa Resources (ASX:KTA) has confirmed the presence of lithium mineralisation, hosted in pegmatite, at its King Tamba project 70km from WA’s Mt. Magnet mining region. Shares are up 4.9% in early afternoon trade.

King Tamba is the new name for what was formerly the Dalgaranga project.

The company is today reporting assays from RC drilling conducted in May and June targeting a range of mineralised pegmatites identified on-site. 

The company has confirmed lithium is present, as well as rubidium, which pulls an even higher price. 

Back in May Krakatoa noted that rubidium carbonate prices were over US$6,000/kg. 

Lithium prices, likewise, are up over 320% year-on-year. The two minerals typically coincide together. 

Perhaps a more meaningful frame of reference for lithium: the price of the main major Chinese carbonate benchmark has nearly quadrupled since early 2020. 

A quick note on grades 

Today’s results are broken down into parts per million, which investors should note is a common method employed to contextualise assay results when overall mineral yields are on the smaller side. 

This is perhaps unsurprising, given that Krakatoa’s King Tamba is a rare metals play. The metals are rare, after all. 

What is surprising is that Krakatoa has consistently found higher grades of rubidium than lithium, and rubidium is what the company is principally targeting in its current strategy. 

With that in mind, a quick note on grades. 

Many high-grade lithium operations in Australia boasting estimates with lithium concentrations greater than 1% are considered high-grade. 

While Krakatoa’s first batch of assays do not hit this threshold, it’s worth considering a vast system of low-grade mineralisation can be more valuable than a project with a small high-grade deposit. 

Typically, Rubidium results over 1% concentration are also considered high grade. 

What is Krakatoa reporting? 

Today’s assays relate to drilling targeting rubidium and lithium targets identified by the company’s geotechs in late July.

The best single assay results pulled from recent drilling boast the following grade credentials: 

• 0.55% rubidium 

• 0.39% lithium

These results, however, came from intermittent pockets. As for thick intersections, which typically point towards a greater degree of confidence in commercial prospects, the company lists the following: 

• 36m @ 0.16% rubidium from 66m depth

• 34m @ 0.21% rubidium from 82m depth

• 21m @ 0.16% rubidium from 68m depth 

• 17m @ 0.13% rubidium from 70m depth

What comes next? 

Krakatoa is currently awaiting delivery of three more batches of assay results from King Tamba, so, shareholders would be wise to keep an eye out. 

Once those results are received, the company will begin crafting its maiden resource estimate for the project. 

While those results trickle back to the company (assay laboratories across WA are currently experiencing backlogs,) the following works will take place: 

• Airborne surveys to further refine targets 

• Geological mapping of historical mining works in the area 

• Geophysical analysis of rock types and local geology 

• Geological modelling of deposits ahead of maiden resource estimate

While no timeline is given, the company is also intending to launch further drilling at King Tamba. 

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Disclaimer: Market Index helps small-cap ASX listed companies connect with Australian investors through clear and concise articles on key developments. Krakatoa was a client at the time of publishing. All coverage contains factual information only and should not be interpreted as an opinion or financial advice.