Krakatoa Resources Limited informed the market that resource drilling has been completed at its 100% owned Dalgaranga critical metals project located approximately 70km from Mt Magnet, WA. The company drilled thirty-two RC drillholes for a total of 3,045m during May and June 2022. The program targeted a suite of mineralized pegmatites which are enriched in rubidium, tantalum, caesium, niobium and lithium and was designed to infill existing drilling to a nominal 40 x 40m spacing to allow calculation of a maiden mineral resource.

Rubidium was the primary target of the drilling with previous work having returned highly anomalous values over a large areal extent. The rubidium mineralization is not obviously visible therefore it is not possible to infer grades at this stage, however thick intersections of pegmatite were regularly encountered at the expected depths and the existing geology model was shown to be accurate. Approximately 1,400 samples have been shipped to ALS in Malaga for assaying, with results expected in due course.

Whilst the drilling was mainly infill, a number of extensional holes were added to the program with very promising results. Drillhole DAL033 encountered 32m of pegmatite from 33-65m downhole, which extended the known boundary of the central pegmatite north by 65m. Similarly, drillhole DAL004 encountered 12m of pegmatite from 46m downhole and extends the central pegmatite south by 30m.

These extensional drill holes allow the company to add significant tonnage to the pegmatite model and importantly they also indicate that the system has not been closed out yet. Farther south on the tenure and beyond any existing drilling, three exploration holes (DAL027 ­ DAL029) were drilled to test an area where geological mapping had indicated pegmatite at surface. The results from these holes were particularly pleasing, with DAL029 returning 16m of pegmatite from three lenses in the first 30m of the drillhole and additional pegmatite below 74m.

DAL029 is located 650m south of its existing wireframes and 200m south of the previous southernmost hole. At this stage there is insufficient data to infer continuity of the pegmatites along the full 650m of strike extent, however future drilling plans will seek to test this theory. All drillhole data including the pegmatite intersections are detailed in Table 1. The reference to pegmatite does not necessarily reflect the presence the critical metals or a mineralised zone.

It only represents the geological lithology in which the mineralisation has been recorded and evidenced from by previous exploration. It is shown in DAL016 that the pegmatite is present within two intervals. The first interval of 4 metres starting at 32 metres and a second wider intersection of 22 metres from 70m downhole.

DAL018 encountered 44 metres of pegmatite from 33 metres downhole. Within these pegmatite zones several zones of associated critical metals mineralisation are thought to be present. No grade or associated mineralisation is determination is given or assumed and will be forthcoming once the laboratory analysis is complete.

The Dalgaranga area is considered prospective for tantalum, lithium, niobium, tungsten, tin, and rubidium. Historical mechanised mining produced tantalum, beryl, tin and tungsten from a shallow open pit during 2001 and 2002. Work is now ongoing to model the pegmatites in detail and compile supplementary data to support a maiden mineral resource estimation.

On positive resource definition the company will undertake initial metallurgical test work to identify suitable product suites from the various zones within the pegmatite complex. The rise in demand and prices of the currently identified speciality metals has risen over the last few years, to level which may provide opportunities for the company to investigate potential for extraction. The expansion of Krakatoa's land holding has also brought the company closer to this ambition.

Rubidium (as Rubidium carbonate) has many industrial uses typically for enhancing stability and durability as well as reducing conductance. It is currently principally used in speciality glasses such as fibre optic cables, telecommunications systems including an important role in GPS systems, and night vision devices. There are also uses in medical equipment and quantum computing.