Krakatoa Resources Ltd (ASX:KTA) has highlighted strong early drilling success and a reworked project deal structure as key drivers during the March 2026 quarter, with momentum building at its flagship Zopkhito Antimony-Gold Project in Georgia.
The company is sharpening its focus on Zopkhito, where maiden drilling has confirmed high-grade mineralisation and supported plans to accelerate exploration and resource definition.
High-grade drilling validates historical model
During the quarter, Krakatoa reported results from its Phase 1 drilling campaign, which confirmed the presence of both high-grade gold and antimony across multiple zones.
Plan view showing the drill hole collar and drill trace locations of all surface diamond drillholes. Significant assay results (>0.5 g/t Au and/or 0.25% Sb) reflecting mineralised intercepts are shown.
Notable intercepts included:
- 8 metres at 14.1 g/t gold, including 1.5 metres at 38.5 g/t
- Antimony grades up to 24.2% Sb in drilling
- Broad mineralised zones intersected across both surface and underground programs
These results extend mineralisation beyond historical workings and validate the project’s historical foreign resource model.
Underground drilling also reinforced continuity, with 16 of 18 holes intersecting visible antimony mineralisation, highlighting a consistent system linked to broader gold-bearing zones.
Plan view showing the underground core sampling drill hole collar and drill trace locations within Adit 80. Significant assay results (>0.5 g/t Au and/or >0.25% Sb) showing mineralised intercepts are shown.
Zopkhito hosts a substantial foreign resource estimate of 7.1Mt at 3.7 g/t gold for more than 815,000 ounces, alongside 225,000 at 11.6% antimony.
Restructured deal improves funding pathway
Post-quarter, Krakatoa restructured its option agreement over Zopkhito, shifting from up-front acquisition payments to a staged earn-in model.
The revised structure allows the company to earn up to 80% ownership while directing capital towards exploration and development rather than acquisition costs. This is expected to:
- Increase drilling activity and data generation
- Improve capital efficiency
- Reduce shareholder dilution
The company has already committed close to US$1.6 million to the project, maintaining minimum US$2 million spend requirement.
2026 exploration and broader district potential
Planning is under way for the 2026 field season, with a focus on:
- Resource definition drilling
- Metallurgical optimisation test work
- Early-stage mining studies
Krakatoa is also progressing environmental baseline work and permitting in preparation for future development.
Photograph of the road and bridge repairs for the access track to site (21 April 2026)
Beyond the core Zopkhito system, the company has identified four additional prospects within the licence area — Devrushi I and II (copper, lead and zinc), Sagebi (tungsten and antimony), Kodiani (antimony), and Edena (antimony and gold) — pointing to broader district-scale potential.
Location of Identified prospects within the Zopkhito mining licence
Corporate and cash position
During the quarter, Krakatoa raised $1.25 million via a placement to fund ongoing exploration, while also strengthening its technical team with key appointments.
The company reported cash of $1.03 million at quarter-end, with exploration expenditure of $250,000 during the period.
With high-grade results in hand and a more flexible funding structure in place, Krakatoa is positioning Zopkhito as a potential European source of critical metals, with the next phase of drilling and technical work set to define its scale more clearly.