Krakatoa Resources Ltd has updated the market on exploration activities across its 100%-owned Mt Clere Project on the northwestern margin of the Yilgarn Craton in Western Australia, including drilling at Stone Tank and studies at the Tower REE deposit, where it will place most of its focus.
The company recently completed a tenement rationalisation at Mt Clere, narrowing its focus to areas considered more prospective for rare earth element (REE), base metal and precious metal mineralisation systems.
As part of the review, the company said it has significantly reduced its landholding in the northern Mt Clere area following five years of targeted exploration.
Current exploration tenements held by the company at the Mt Clere area showing prospects and the Tower mineral resource estimate location.
Stone Tank drilling
In the second half of 2025, Krakatoa completed a 2-hole drilling program at the Stone Tank prospect, partially funded through a $220,000 Western Australian Government Exploration Incentive Scheme (EIS) grant awarded in October 2024.
The company said lithologies intersected were consistent with the broader Gascoyne metamorphic terrain, including banded iron formation (BIF), meta-sediments/gneiss, amphibolite, granite and diorite, with no obvious ultramafic units or carbonatites observed.
Both holes recorded significant silicification and minor sulphides.
Krakatoa logged, cut and submitted half core to the WA Department of Mines, Petroleum and Exploration for HyLogger spectral scanning (visible and infrared spectroscopy), with core retained as part of the State core library.
A further 45 samples were selected for multi-element analysis at ALS’ Perth laboratory, with sample intervals of 0.6–1 m.
The company reported no significant assay results and said no further work is currently planned at Stone Tank.
Tower REE deposit remains key focus
Krakatoa said its forward focus at Mt Clere will centre on the Tower clay-hosted REE deposit, discovered in 2021 and currently carrying a JORC-compliant resource of 101 Mt at 801 ppm TREO.
During the latter half of 2025, the company lodged applications for two additional exploration licences (E52/4498 and E52/4448), which it said would extend the Tower system by more than 9 kilometres to the east once granted.
Krakatoa is planning processing studies for the clay-hosted REE mineralisation and is also assessing opportunities for shallow drilling to extend the Tower mineral resource estimate to the east, subject to grant of the new tenements.