Krakatoa Resources (ASX: KTA) does da Turon-ron and triples on gold-copper finds in NSW

Krakatoa Resources (ASX: KTA) does da Turon-ron and triples on gold-copper finds in NSW

April 11, 2024 Off By Amanda Ellis

Krakatoa Resources’ share price has exploded, adding up to 213 per cent to its valuation after explorers did a do-run dance at Turon project in New South Wales to deliver modern gold and copper near Hill End where the world’s biggest ever gold nugget was found.

Trade in West Australian company Krakatoa’s shares went from a 0.8-cent closing price yesterday to run up its swap value up to 1.7c in morning trade.

Shares changed hands for up to 2.5c before resting at a steady 2c by lunchtime.

The trade milestone made Krakatoa the fourth most traded stock on the Australian Securities Exchange this morning, experiencing the second-biggest gains.

Krakatoa’s breakout smashed a $10 million ceiling in the company’s market capitalisation and saw its valuation sit at $9 million by lunchtime.

Da Tu-ron-ron results

Firecracker results from Krakatoa’s rock-chip exploration efforts at its Turon Gold Project in NSW’s Central Tableland region included a standout assay featuring 1.24 grams per tonne gold that was also anomalous for molybdenum and tin.

Four samples returned over on per cent copper, averaging 4.83% Cu, for a 10.45% Cu maximum.

Turon is near Newcrest Mining’s (ASX:NCM) Cadia Valley gold mining operations and Vertex Minerals’ (ASX:VTX) advanced stage Hill End exploration project which features 485,000 ounces Au and the high-grade Reward gold mine.

Krakatoa CEO Mark Major gave a nod to the company’s crystalising results at Turon, and noted its NSW projects had continued to deliver promising results.

“Jews Creek prospect within the Turon tenement, widely considered prospective for lode gold only, has delivered encouraging, intrusive-related Cu-Au results at a time when the demand for copper is booming and gold is threatening to break out to an all-time high,” he said.

“These are promising results, and we look forward to future investigations.”

The company’s NSW projects include two projects in the the tier-one Lachlan Fold Belt mining jurisdiction, Belgravia Porphyry Project near Orange and Molong, and Rand Gold Project on Bulgandry Goldfield.

Its West Australian assets include Mt Clere Rare Earth Project northwest of Meekatharra and King Tamba Specialty Metals Project northwest of Mount Magnet on the huge Dalgaranga Greenstone Belt.

Krakatoa has discovered lithium at King Tamba.

Kuen Guen Jews Creek results

The historical copper occurrence Jews Creek or Kuen Guen has mineralisation on the margins of a quartz-rich, chlorite-altered Devonian intrusive.

Before Krakatoa got out on ground at the creek site, fieldwork had last been undertaken in 1973, in what looks like two lots of hard-rock workings.

Seventies explorers named the two historical workings Jews Ck North and Jews Ck South, names still in use.

The believed historical workings at Jews Creek South spanned an area of more than 100m by 100m, with Krakatoa reporting its four samples from the southern creek area featured “gossanous, veined and silicified igneous and metasedimentary rocks with abundant secondary Cu minerals – malachite, azurite, chrysocolla and possibly chalcocite.”

The company’s Jews Creek South samples included standout results of 1.235g/t Au, 39.1g/tAg, 10.45% Cu, 331 parts per million lanthanum, 45.3ppm Mo, 4850ppm lead, 19.6ppm Sn and 1330ppm zinc.

Jews Creek North has mullock features quartz-oxidised sulfide-secondary Cu veins and malachite-stained fractures.

A number of shallow prospecting pits have been excavated in the northern creek area into massive intrusive hostrock.

Two Jews Creek North mullock samples returned up to 1825ppm Cu, 7.96ppm bismuth, 168.5ppm nickel, 31.6ppm Mo, 21.3ppm stibnite and 105ppm Zn.

The Jews Creek North area includes a strike stretching more than a kilometre north that extends into an adjacent property.

Krakatoa did not field-check the northern extent when it collected other rock chips.

Mt Rosette Dry Creek results

Krakatoa’s Turon Gold Project also features a west-trending mineral occurrence at Mt Rosette that goes into a quartz vein that reportedly bears gold.

No historic production records for the adit or the many alluvial workings occur for over 1km along the adjacent dry creek area dubbed Dry Ck.

While the adit was not sampled for safety reasons it runs along several kilometres of strike, with a main north-south-trending ridge west of the adit.

Krakatoa took 9 quartz vein samples there along the main ridgeline and 2 samples further northwest in the flats.

The Dry Creek extension samples were pitted and sulfide bearing, with low gold values, but were anomalous for pathfinders, featuring 434ppm As, 1.51ppm Be and 6.07ppm Sb.

About Turon

Turon Gold Project contains areas suitable for shear-hosted gold mineralisation, alluvial gold terraces, and structurally controlled high-sulphide base metal hydrothermal metamorphic-vein mineralisation with and without gold.

Krakatoa’s 120 square kilometre project is 50km east of the company’s Belgravia project and 60km northeast of Newcrest Cadia’s gold mining operations in NSW.

The mining giant’s Cadia Valley Operations near Orange produced 597 kilo-ounces of gold in financial year 2022-23 at an all-in sustaining cost of $45 an ounce from the one mine the major player has open at the operations, Cadia East mine.

Turon project is prospective for high-grade Slate Belt orogenic gold that is similar to Vertex’s Hill End field which has produced 2 million ounces of gold.

The world’s largest gold specimen, the Holtermann Nugget, was found at Hill End.

Discovered more than 150 years ago by Prussian-German migrant Bernhardt Holtermann, the nugget was 1.5m long and weighed 290 kilograms (630 pounds).

The man-sized nugget had gold content of about 3,000 troy ounces (93kg), with an estimated value of $3,950 at today’s price levels.

Spot gold is currently trading for about $3596 an ounce.

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