Krakatoa Resources (KTA) holds the keys to a large clay-hosted REE resources at its Mt Clere project in Western Australia and this week announced a new REE discovery in New South Wales.
Company Geologist and CEO Mark Major addressed investors at The Market Herald’s From Mine to Magnet event in Perth this morning (Wednesday, May 10).
Krakatoa’s Tower discovery holds an estimated mineral resource of 101 million tonnes at 840 parts per million total rare earth oxides (TREO).
Early this week Krakatoa also announced it had made a clay-hosted rare earths discovery at its Ryan prospect within its Rand Project in New South Wales, with intersections including 8m at 1056ppm TREO within 42m at 483ppm TREO (from surface).
“The Ryan and Jindera Granites have sizeable footprints that we look forward to investigating further,” Mr Major said.
“Although our focus remains on our Mt Clere project in Western Australia , our NSW portfolio continues to demonstrate excellent potential for major discoveries.”
Krakatoa has a market cap just above $10 million. Mr Major said that meant there was room for growth.
He said the company was still testing and working to understand options around processing.
“The value metrics of the Tower resource, the level of payable rare earths within it, the initial metallurgical recoveries and the potential low cost mining are comparable to other companies that are much more advanced, and, on paper, show highly economic outcomes,” he said.
“The demand for the REE will be a critical economic aspect that also determines how viable this project may be.”