Krakatoa gets funding boost to drill for sulphides at Mt. Clere from WA government

Tue 18 Oct 22, 11:58am (AEST)
A red kangaroo standing in grasslands in the Flinders Ranges National Park in the Australian Outback
Source: iStock

Key Points

  • Krakatoa has won $0.18m in grant funding to drill Mt. Clere this quarter
  • The funding comes from WA government fund designed to encourage greenfield exploration in underexplored areas
  • Mt. Clere is prospective for rare earth elements; but funding will go towards sulphide drilling

Krakatoa Resources (ASX:KTA) shareholders have enjoyed small gains this morning as the company reveals its successful application for $180,000 in funding from the WA government to proceed with Q4 sulphide drilling at its Mt. Clere project. 

In the drill run today’s grant is funding, Krakatoa will go sniffing out sulphide targets it detected in an airborne electromagnetic survey earlier this year, and targets will also be selected against a checklist of former datasets. 

The drilling at Mt. Clere, predominantly a Rare Earths play, has been selected out of 38 successful recipients of the WA’s latest Exploration Incentive Scheme (EIS) grant round; a $10m fund designed to foster and encourage (read: incentivise) greenfield exploration in WA. 

It is likely that Krakatoa’s Mt. Clere project, a rare earth element (REE) play, was selected in part due to stable critical minerals supply chain strategies also being designed by the overhead Federal government

Worth noting is that today's funding grant, however, funds sulphide drilling on-site.

Grant underscores potential: Management 

“The successful application for the EIS grant shows the level of prospective targets the company has identified over the last 18 months,” Krakatoa CEO Mark Major said. 

“We have been planning to drill these targets since June and are now on the cusp of undertaking the maiden drilling.” 

“Our team have recently completed the heritage survey work and have now secured a suitable drill rig to start before the end of this quarter.” 

Maiden drilling proper, but not maiden maiden 

This will not be the first time drills have hit the ground at Mt. Clere. Krakatoa was busy aircore drilling on-site earlier this year, which saw the geotech team bring the drill rig out onto the prolific Yilgarn Craton. 

As for rare earths, Krakatoa suspects REEs on-site are bonded to clays underground, which poses desirable implications for relatively painfree downstream processing. 

Australia’s dedicated REE test lab, which is actually managed by Australia’s nuclear regulator ANSTO, has already seen samples from Mt. Clere come in through the laboratory doors. 

ANSTO is tasked with REE testwork given that rare earths tend to coincide with thorium and contain monazite; both radioactive substances.

A look at Krakatoa's three month charts
A look at Krakatoa's three month charts
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.


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Written By

Jonathon Davidson

Finance Writer

Jonathon is a journalism graduate and avid market watcher with exposure to governance, NGO and mining environments. He was most recently hired as an oil and gas specialist for a trade publication.

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