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Krakatoa Resources increases rare earth prospective ground at Mt Clere, raises $385,000 in completed share placement

The company increased its landholding at the Mt Clere Rare Earth Project from 403 to 556 square kilometres.

Mt Clere is about 200 kilometres northwest of Meekatharra

Krakatoa Resources Ltd (ASX:KTA) has made a new exploration licence application immediately next to its Mt Clere Rare Earth Project in Western Australia.

The new tenement application secures a total of 556 square kilometres over prospective drainages in WA’s Gascoyne region, increasing the company’s holding by a further 153 square kilometres.

Raised capital to go towards exploration activities

A share placement announced in June has also been completed, issuing a total of 17.5 million ordinary shares at a price of 2.2 cents and raising $385,000.

Funding from the placement will go towards exploration activities on Krakatoa’s existing projects, with a focus on the recently acquired Mt Clere project.

The company will also use capital to evaluate further acquisition opportunities and for general working capital.

Multiple rare earth and thorium targets at Mt Clere

Mt Clere contains multiple rare earth element (REE) and thorium targets in enriched monazite sands.

It also contains REE ion adsorption on clays within the widely preserved deeply weathered lateritic profiles and REE occurring in plausible carbonatites associated with alkaline magmatism.

The new application lies downstream of known enriched concentrations of monazite, a rare earth phosphate that accumulates in drainage systems because of its high density.

A source for the monazite is yet to be identified but the mineral is ubiquitous in granitic and many metamorphic rocks and is a primary and hydrothermal mineral in carbonatite.

Next steps

Before grant of the new exploration licence, the company will complete:

  • Compilation of legacy data and reprocessing the existing geophysical datasets using modern approaches and enhancements;
  • Review the potential for other REE mineralisation styles including ion-adsorption clay drill target generation and REE-carbonatite;
  • Ground search for and sampling of alkaline ultramafic outcrops; and
  • Non-ground disturbing activities including the collection of monazite samples to determine the relative rare earth and thorium contents within monazite grains.

Quick facts: Krakatoa Resources

Price: 0.072 AUD

Market: ASX
Market Cap: $15.75 m

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