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Krakatoa Resources (ASX:KTA) expands exploration interest at Sugarloaf

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ASX:KTA      MCAP $4.721M
31 March 2021 16:10 (AEST)

Krakatoa Resources (KTA) has received assays for 290 soil samples taken from the Sugarloaf prospect at its wholly-owned Belgravia Project in New South Wales.

KTA considers Sugarloaf to be highly prospective for mesothermal vein gold deposits as well as epithermal gold-base metal deposits.

The recent results have enhanced the exploration potential of a porphyry copper-gold deposit within the Sugarloaf prospect.

Tested soils covered a significant magnetic feature coincident with two deep ground penetrating radar anomalies and anomalous rock geochemistry.

Further, the batch included a float sample reporting 5.19g/t gold and 1.73 per cent copper in Sugarloaf’s southwest margin.

Returning up to 231 parts per million copper and 433 parts-per-billion gold, KTA says the assays also support previous high-grade rock chip samples taken from the site.

Krakatoa CEO, Mark Major, said the results have confirmed the belief that Sugarloaf could feature a large mineralised system at depth.

“The soil geochemistry shows well recognised and understood patterns of pathfinder metal donation seen around this deposit style,” he commented.

“As a result, we are now looking to undertake additional soil geochemistry, which will be supported with an initial aircore drilling program to improve our understanding at the regolith-basement boundary and potentially highlight areas where epithermal or skarn mineralisation is apparent,” Mark continued.

Additionally, the company will undertake inversion modelling to support its plans to drill the deeper system.

Looking forward, Krakatoa is preparing to increase the geochemical soil survey area at Sugarloaf and commence aircore drilling.

Immediate work is set to test shallow copper-gold anomalies and assist with vectoring on the prospect’s deeper porphyry system.

Krakatoa Resources’ shares are down 1.61 per cent, trading at 6.1 cents at 2:56 pm AEDT.

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