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8 December 2021
Ionic Clay Hosted Rare Earths Discovered at Rand
Project, NSW
- Supplementary analysis reveals anomalous REEs from the March 2021 shallow AC drilling program at the Rand Bullseyes
- Significant REE intersections discovered over re-assayed samples include: o 11m @ 1,223ppm TREO from 43m (HAC020)
- 7m @ 1,285ppm TREO from 42m; within 28m @ 598ppm TREO from 38m to EOH (HAC023)
- 4m @ 1,424ppm TREO from 35m; within 12m @ 633ppm TREO from 31m (HAC029)
- 8m @ 1,230ppm TREO from 9m; within 35m @ 579ppm TREO from 1m to EOH (HAC043)
- Analysis using weak acid solution (WAR) displays weakly bound, highly soluble REEs, characteristic of ionic absorption clay REE deposits
- Up to 86% recovery using WAR over intrusive basement and up to 77% recovery within metasediments
- Significant and strategic new regional land holding applications submitted, expanding the Rand Project by a further 2,241km2
Krakatoa Resources Limited (ASX: KTA) ("Krakatoa" or the "Company") is pleased to announce the discovery of ionic type rare earth elements at the Rand project, NSW. The Company initially reported encouraging assay results for a large Intrusive Related Gold System (IRGS) from the maiden aircore (AC) drilling program at the Rand Bullseye Magnetic targets in June 2021 (see ASX Announcement 30 June 2021), The Bullseye targets are located 2.5 kilometres northeast of Rand township within EL9000 in the NSW Riverina district.
The Bullseye program targeted a variety of magnetic features (intrusives) exhibiting conductive and/or chargeable anomalies which were concealed by cover.
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Krakatoa's CEO Mark Major commented "We are excited with the recent rare earth element reconnaissance assay results. The review on the initial assay results identified anomalous REEs within the multielement program on many of the AC samples. As such a more detailed investigation was required to ascertain the significance of this find.
We can now report we have identified significant levels of rare earth elements within the regolith profile of the bullseyes area; both within the metasediments and over the intrusives. We are still very early in this investigation and can only speculate on the origins of the rare earths, but it is clear they have concentrated in the clay rich saprolite zones above the intrusives as well as within the metasediments surrounding these.
The full hole analysis has shown significant widths of REE concentrations, and more recent weak acid testing indicates a high level of readily mobile REE exist. There seems to be an ionic clay host embodiment over the weathering of the intrusions which is the most likely source of the REE. Further work will be undertaken to understand the source and more importantly the distribution of the REE.
This is the first discovery of clay hosted REE within this area of NSW. The Company has significantly expanded its land holding over the already large area via applications of additional tenure with similar geophysical signatures and underlying geology."
Rare Earth Element Discovery
Krakatoa completed 43 vertical AC drill holes (~2,762 meters) in early 2021. The holes were nominally drilled to blade refusal, usually the top of fresh bedrock. Samples were initially taken as 2 to 5 metres composites with 1 metre samples taken near the bottom of hole. In addition to the gold and strongly anomalous IRGS pathfinder elements identified, high levels of Cerium (Ce), Lanthanum (La) and Yttrium (Y) were also recorded.
A small batch of 16 existing laboratory pulp samples were selected for rare earth elements analysis using full digestion lithium borate fusion analysis. The 16 samples were taken from 13 drillhole locations (Figure 1). This test work revealed significant levels of widespread REEs, with abundant quantities of Neodymium, Praseodymium and Yttrium within the various geological environments sampled. Five holes (HAC020, HAC023, HAC025, HAC029 and HAC043) were then selected to undertake full hole analysis for REEs using full digestion. Details of each sample location and analytical results associated with rare earth oxides are summarised in Table 1 and all relevant intersection data over 300 parts per million (ppm) total rare earth oxide (TREO) are presented in Table 2.
All identified lithological areas were tested. Most of the samples were taken from the various regolith weathering profiles within the metasediments (Abercrombie Fm) while only two were sourced from holes over the intrusives bodies.
Ionic Clay Prospectivity
A small batch of 19 samples (pulps) from within the five focused holes underwent digestion using weak acid solution to test for weakly bound - highly soluble REEs, a recognised characteristic of ionic absorption clay REE deposits. These 19 samples represented areas of various REE concentrations (Table 2) within metasediments and intrusive basement profiles. This method of digestion discovered that the samples over the intrusive bodies had significantly high recoveries (average 86%) while that within the metasediments ranged from 18 to 77 percent, all which have comparable levels with similar known ionic REE deposits.
Comparison of the full digestion assay results and the weak acid assay results are shown in Table 3.
Next Steps
The Rand area is considered prospective for IRGS, shear-hosted (orogenic) gold, magmatic tin-tungsten deposits, copper-gold porphyries with associated epithermal systems; and now REEs in shallow regolith. These regolith - clay associated hosted REE are thought to be associated with the weathering of the granitic intrusive basement rocks however with more study, the understanding of the genesis of the REE mineralisation will become apparent.
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The Company has completed a review of the regional area and expanded its land holding to include additional prospective ground over potential REE hosting intrusives, with minor alluvial cover. This will increase the current landholding around Rand by 2,241km2.
Detailed studies into the basement rock, as well mineral identification along with salt solution (pH 4-5, slightly acidic) leach test work will be undertaken on samples. Additional air core drilling is being planned over the granted tenements in the first quarter of 2022 subject to regulatory approvals and land access, where more extensive exploration over the various intrusives within the granted landholding will be tested.
We look forward to updating shareholders with a pipeline of news flow as the project develops.
Authorised for release by the Board.
FOR FURTHER INFORMATION:
Colin Locke Executive Chairman +61 457 289 582 locke@ktaresources.com
Competent Person's Statement
The information in this announcement is based on, and fairly represents information compiled by Mark Major, Krakatoa Resources CEO, who is a Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Krakatoa Resources. Mr Major has sufficient experience relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he has undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Major consents to the inclusion in this announcement of the matters based on this information in the form and context in which it appears.
Disclaimer
Forward-looking statements are statements that are not historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)" and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company's prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non- occurrence of any events.
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Figure 1 Map showing AC collars (thematically Mapped by end-of-hole lithology) with highlighted (light blue rings) holes that have had initial REE analysis; magnetic bullseye anomalies and dipole-dipole survey information.
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Table 1: Significant drill hole rare earth oxide assay results.
TREO in green are above 500ppm, TREO in yellow are above 1000ppm.
Hole ID | Easting | Northing | Bedrock | Hole Depth | From | To | Width | Ce2O3 | La2O3 | Y2O3 | Dy2O3 | Er2O3 | Eu2O3 | Gd2O3 | Ho2O3 | Lu2O3 | Nd2O3 | Pr6O11 | Sm2O3 | Tb4O7 | Tm2O3 | Yb2O3 | TREO | ||||||||||||||||
GDA94 | GDA94 | Lithology | (m) | MBGL | MBGL | (m) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | (ppm) | |||||||||||||||||
HAC001 | 462915 | 6062711 | Hornfels | 59 | 27 | 30 | 3 | 723 | 334 | 19 | 5 | 2 | 3 | 9 | 1 | 0 | 137 | 52 | 19 | 1 | 0 | 2 | 1308 | ||||||||||||||||
HAC016 | 464869 | 6063460 | Metasediment | 72 | 30 | 31 | 1 | 795 | 70 | 32 | 6 | 3 | 2 | 7 | 1 | 0 | 52 | 16 | 9 | 1 | 0 | 3 | 998 | ||||||||||||||||
HAC018 | 464824 | 6063101 | Metasediment | 93 | 51 | 54 | 3 | 615 | 34 | 27 | 5 | 3 | 1 | 5 | 1 | 0 | 27 | 8 | 5 | 1 | 0 | 3 | 737 | ||||||||||||||||
HAC020 | 465047 | 6063098 | Intrusive | 59.8 | 43 | 54 | 11 | 163 | 221 | 313 | 41 | 24 | 13 | 49 | 9 | 3 | 244 | 63 | 50 | 7 | 3 | 20 | 1223 | ||||||||||||||||
HAC023 | 464949 | 6063301 | Metasediment | 66 | 38 | 66 | 28 | 175 | 101 | 98 | 15 | 9 | 4 | 19 | 3 | 1 | 112 | 28 | 22 | 3 | 1 | 8 | 598 | ||||||||||||||||
incl | 42 | 49 | 7 | 294 | 220 | 214 | 34 | 19 | 10 | 46 | 7 | 2 | 287 | 71 | 57 | 6 | 3 | 16 | 1285 | ||||||||||||||||||||
HAC024 | 464947 | 6063101 | Sandstone | 79 | 31 | 33 | 2 | 505 | 153 | 29 | 7 | 3 | 2 | 10 | 1 | 0 | 101 | 31 | 16 | 1 | 0 | 3 | 863 | ||||||||||||||||
and | 35 | 37 | 2 | 524 | 213 | 92 | 20 | 9 | 8 | 33 | 3 | 1 | 238 | 60 | 45 | 4 | 1 | 8 | 1260 | ||||||||||||||||||||
HAC025 | 465940 | 6062325 | Metasediment | 66 | 34 | 66 | 32 | 196 | 81 | 48 | 9 | 5 | 3 | 11 | 2 | 1 | 79 | 21 | 15 | 2 | 1 | 4 | 475 | ||||||||||||||||
incl | 34 | 47 | 13 | 336 | 125 | 43 | 9 | 4 | 3 | 13 | 2 | 1 | 121 | 32 | 21 | 2 | 1 | 4 | 717 | ||||||||||||||||||||
HAC029 | 465202 | 6062200 | Intrusive | 52.1 | 31 | 43 | 12 | 167 | 86 | 165 | 23 | 14 | 6 | 24 | 5 | 2 | 84 | 21 | 19 | 4 | 2 | 12 | 633 | ||||||||||||||||
and | 35 | 39 | 4 | 208 | 220 | 437 | 60 | 37 | 15 | 63 | 13 | 5 | 218 | 55 | 49 | 10 | 5 | 31 | 1424 | ||||||||||||||||||||
HAC030 | 465124 | 6062150 | Hornfels | 84 | 44 | 48 | 4 | 574 | 70 | 51 | 9 | 5 | 2 | 11 | 2 | 1 | 68 | 18 | 13 | 2 | 1 | 5 | 829 | ||||||||||||||||
HAC033 | 465505 | 6062621 | Greywacke | 75 | 30 | 34 | 4 | 565 | 262 | 53 | 12 | 5 | 4 | 17 | 2 | 1 | 202 | 64 | 30 | 2 | 1 | 5 | 1224 | ||||||||||||||||
HAC040 | 465339 | 6063337 | Greywacke | 78 | 38 | 39 | 1 | 453 | 22 | 37 | 6 | 4 | 1 | 5 | 1 | 1 | 20 | 5 | 5 | 1 | 1 | 3 | 564 | ||||||||||||||||
HAC041 | 465292 | 6063197 | Metasediment | 54 | 49 | 50 | 1 | 560 | 88 | 53 | 10 | 5 | 3 | 12 | 2 | 1 | 82 | 23 | 15 | 2 | 1 | 5 | 862 | ||||||||||||||||
and | 53 | 54 | 1 | 785 | 206 | 74 | 16 | 7 | 6 | 25 | 3 | 1 | 209 | 60 | 39 | 3 | 1 | 6 | 1442 | ||||||||||||||||||||
HAC043 | 465661 | 6063054 | Metasediment | 36 | 1 | 36 | 35 | 221 | 118 | 59 | 11 | 6 | 3 | 13 | 2 | 1 | 94 | 27 | 17 | 2 | 1 | 5 | 579 | ||||||||||||||||
incl | 9 | 17 | 8 | 502 | 278 | 75 | 16 | 7 | 6 | 24 | 3 | 1 | 208 | 63 | 36 | 3 | 1 | 6 | 1230 | ||||||||||||||||||||
Note results have been converted from elemental analysis (REE part per million) to stoichiometric oxide (REO parts per million) by using the standard stoichiometric oxide conversion factors. See further details in JORC Code - Table 1 at back of this announcement.
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Krakatoa Resources Limited published this content on 07 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 December 2021 21:31:05 UTC.