Krakatoa Resources fires up the drill at Critical Mineral project

Krakatoa Resources (ASX:KTA) has today revealed to the market the company has commenced drilling for critical minerals onsite its Dalgaranga project nearby Mt Magnet in a prolific and well-understood mining region of WA. 

Back in November, the company defined an upper exploration target of 3.1Mt with estimated grades of Rubidium (500-2000ppm), Lithium (50-300ppm), Niobium (100-500ppm), Tantalum (25-100ppm), Tungsten (10-100ppm) and Tin (50-700ppm). 

Krakatoa Resources notes these numbers are approximation and further drill results will be needed to better define commercial geology. 

However, should the project turn up promising results for easily accessible critical mineral deposits in the relatively short-term, management is confident high prices for tech metals will put the company in good stead. 

Pictured: the drill rig currently on-site (supplied)

Lithium a large component 

The company is confident on models it has regarding pegmatites on-site which constitute a key exploration target covered by 156 historical drill holes for 5,000m and a further 11 holes drilled by Krakatoa in 2011. 

Four elements were assayed within those historical drill holes; the company will now expand its analysis to capture all critical minerals identified. 

The total RC drill program being undertaken is intended to consist of 3,500m across 30-35 drill holes. 

Well-understood area with existing data to inform exploration 

The Dalgaranga acreage was originally discovered in 1961 and has been subject to small-scale development since then; but alluvial mining on-site has produced tantalum, beryl, tin, and tungsten. 

Lithium and Niobium are now on the radar as important metals compared to exploration carried out before the 2000s. 

Rock samples collected in 2017 to 2017 suggest there are further lithium-bearing minerals at the location. 

The company notes rubidium carbonate prices are currently over US$6,000/kg. Lithium prices, likewise, are up over 410% year-on-year.

Krakatoa's charts vs the materials index