Krakatoa Resources Limited provided an update on exploration RC drilling program targeting strong electromagnetic (EM) conductors at its wholly owned Mt Clere Project. The Project lies within the Narryer Gneiss Terrane at the northern edge of the Yilgarn Craton in Western Australia and predominantly contains highly metamorphosed and deformed granites and felsic gneisses along with mafic intrusive bodies and rafts of remnant sedimentary units. Drilling is ongoing, with the fourth hole recently completed.

All holes have encountered significant widths of sulphides. The first three holes were drilled over the Milly Milly EM target anomalies and the fourth hole has just finished at the North Bullbadger area. The Milly Milly holes revealed significant intervals containing sulphide minerals hosted within both highly metamorphosed amphibolite and BIF, and also disseminated within the surrounding granitic material.

Sulphide minerals identified include chalcopyrite (copper sulphide), pyrrhotite (iron sulphide) and pyrite (iron sulphide). Drill hole MMRC01 at the high conductance (10,000S) Milly Milly electromagnetic anomaly intersected sulphide mineralisation zone from 183m downhole. This zone was over 60m thick with the top 30m section reported to have up to 30% sulphides with the lower section having 2%.

This coincides well with the modelled EM plate. These intervals were dominated by iron sulphides such as pyrite and pyrrhotite, with minor chalcopyrite. The distribution of sulphides through the Milly Milly holes are within both the BIF and granite.

This indicates the presence of a significant mineral system that has brought in the sulphides and reduced magnetite in the BIF to pyrite. Pyrite is the sulphide mineral in overall highest abundance however low concentrations of pyrrhotite were also widely noted. Discrete intervals of chalcopyrite were observed from initial logging, generally within zones of strong foliation.

A geological summary of the holes can be found in Table 1. The information in this announcement is based solely on visual inspection of the RC drilling rock chips. These samples have not yet been assayed and analysed. The Company has not confirmed whether Ni, Cu or PGE mineralisation is present although chalcopyrite has been sighted in the RC chips.

The Company conducted an airborne variable-time electromagnetic (VTEM) survey at the end of 2021 and identified 52 significant anomalies across the broader survey area. Review of these anomalies and interpretation of their geological setting resulted in 15 being prioritised for follow-up with a ground moving-loop (MLEM) survey that was conducted in May of this year. 3D modelling of the anomalies identified several that were prioritised for drilling this year.

Following a delayed heritage clearance process that was completed in the middle of November, Krakatoa quickly secured a drilling contractor and moved to drill the three highest priority targets in the remainder of this year. The Company is completing detailed logging and sample preparation for submission to the laboratories this month. The RC drilling will continue to drill several other EM anomalies within the southern cluster before demobilising from site.

The Company is collecting the drill samples for analysis and the first batch of samples are expected to arrive at the Perth laboratory by Christmas. On completion of drilling the Company will decide if it will undertake down hole electromagnetic surveys on all holes completed with sufficient casing. If done this will evaluate any potential for off-hole conductors.

The company is also optimising the diamond holes to be drilled under a funding grant as part of the WA Government Exploration Incentive Scheme to help with further geological understanding in prospective areas.