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- Krakatoa Resources has started field due diligence at the Belgravia Project in New South Wales
- A recently signed agreement between Krakatoa and Locksley Holdings will see Krakatoa acquire the project and conduct a due diligence program within a three-week period
- The Belgravia Project is located in the East Lachlan region which is the largest porphyry province in Australia
Krakatoa Resources has commenced field due diligence at the Belgravia Project in New South Wales.
As announced on September 26 2019, Krakatoa entered a binding term sheet with Locksley Holdings to purchase 100 per cent interest in an exploration licence making up the Belgravia Project.
Under the agreement, the company has been granted a 21-day exclusive option period to undertake due diligence at Belgravia.
“I am delighted to have arrived with our exploration team to commence our technical due diligence program,” Executive Chairman Colin Locke said.
The Belgravia Project covers an area of 80 square kilometres and is located in the central part of the Molong Volcanic Belt. This forms part of the East Lachlan province within the Lachlan Fold Belt which is known as the largest porphyry province in Australia.
Notably, it’s situated between Newcrest Mining’s Cadia operations which has an indicated resource of 2900 megatons at 0.36 grams of gold per tonne, alongside copper readings of 0.25 per cent.
The project is prospective for four deposit types including porphyry copper-gold, associated skarn copper-gold, orogenic gold and VMS-gold mineralisation.
Locksley Holdings has generated six initial priority targets for Krakatoa to immediately focus on.
These include Bell Valley, Guanna Hill, Sugarloaf Creek, Shades Creek, Strathmore and Nandillyan.
Krakatoa has commenced its field due diligence to review and validate these targets.
Historical exploration has predominantly focused on geological mapping and soil and rock chip sampling. However, these studies have inadequately considered the regolith and tertiary basalt (up to 40 metres thick) that obscures much of the prospective geology.
“We are excited to share the highly prospective Lachlan fold belt with several tier 1 majors and with KTA’s current market capitalisation at only $4 million, the proposition presents shareholders with a highly leveraged investment opportunity,” Colin concluded.
