Announcement • May 24
Krakatoa Resources Limited Announces New Gold Discovery At Goodwood Reef, Rand Project
Krakatoa Resources Limited announced initial assay results from the maiden RC drilling program completed over the Bulgandry Goldfields, within its 100% owned Rand Gold Project ("Project"). The Project is centred approximately 60km NNW of Albury in southern NSW covering 580km2 of an under-explored part of the well-endowed Lachlan Fold Belt. The reconnaissance RC drill program was designed as a broad, first-pass test of a small selection of known historical mine workings within the Bulgandry Goldfields. Nine (9) reverse circulation (RC) holes
were drilled totalling 1,275 metres; 8 tested for widths and gold grades beneath surface workings and one hole tested a new zone of veins mapped and sampled by KTA in 2021. All initial composite samples were fast tracked by the laboratory and assay results from the program have now been received. The Company is currently awaiting final assays from the regional scale auger soil geochemical survey
and the reconnaissance air-core drilling program over the magnetic bullseye targets area. These results will enable the company to plan the next phase of the company's systematic exploration strategy. Goodwood Reef Results: Three holes were drilled at Goodwood Reef. KBRC006 and KBRC007 tested the eastern end of the known workings. The holes successfully intersected the main lode down-dip from the open slot. Mineralisation occurs as structurally controlled quartz-pyrite (or hematite in the weathered zone) veins with strong silicification. The main lode zone assayed 5 metres grading 1.13g/t Au (KBRC006; weathered zone) and 12 metres grading 0.52g/t Au from 78 metres (KBRC007; sulphide zone), 50m further down-dip. KBRC006 returned a broad zone of 40 metres grading 0.22g/t Au (from 60 to 100 metres) incorporating both the oxide and sulphide zones of the main lode (or possible lodes). The main lode's increase in width at depth could suggest supergene enrichment (supported by Ag:Au ratios) or simply a broadening of the zone. Additionally, two other interpreted, low-grade sub-parallel lodes were intersected; a hanging-wall (HW) and footwall (FW) zone. All 3 zones remain open, down-dip and along strike. KBRC003 tested the western end of the workings and intersected the interpreted lode within the weathered zone. The best result (2 metres @ 0.56g/t Au from 44 metres) could be the mine structure or alternatively, a NW striking silicified cross-cutting structure. KBRC003 failed to explain the high-grade rock-chip samples (up to 14.5g/t Au) collected from silica-hematite rich mullock and outcrop at this easting.
Other Areas Results: Five holes (KBRC001, 004, 005, 008 and 009) tested 5 discrete historical mine workings, three of which feature shallow ineffective, 1986-vintage percussion drilling. These historical angled holes were drilled to total depths ranging from 25 to 39 metres and only tested the weathered zone. KBRC002 tested a zone of mapped veins with favourable geochemistry. Although the gold grades returned from these regional holes were generally low, strongly elevated base metals (particularly Pb and Zn) in addition to several IRGS pathfinder elements - As, Bi, Mo, Sb, Sn, W and Te with a low total sulphide content were prevalent. KBRC001 tested the Show Day Mine under historical hole HB19 (1m @ 1.26g/t Au). The interpreted lode comprised quartz-calcite-pyrite veins with phyllic alteration in a feldspar porphyry that appears to cross-cut both the host metasediments of the Abercrombie Formation and a granite. KBRC002 was designed to test under a zone of arsenopyrite- and scorodite-bearing quartz veins with favourable IRGS geochemistry (rock-chip samples 11307 & 11308) in an area devoid of major workings. The hole drilled predominantly hornfels and intersected a few zones of quartz-pyrite/iron-oxide veins with a best result of 2 metres grading 0.10g/t Au with 37g/t Ag, 0.6% As, 76ppm Bi, 2.2% Pb and 0.11% Zn from 70m. KBRC004 and 005 were drilled as scissor holes across the NE striking Lone Hand and Coonerty and Murphy's Mines, previously never drilled. Both holes drilled numerous zones of quartz-pyrite/iron-oxide veins in predominantly silica-iron-oxide altered metasediments. KBRC004 intercepted the interpreted NW dipping Lone Hand lode from 58 to 70 metres (NSR). A zone of quartz-pyrite-galena veins assayed 0.49g/t Au, 4.7g/t Ag, 319ppm As, 0.54% Pb and 0.15% Zn over 1 metre from 121m. This is interpreted to be a separate lode (or linking structure) between the Lone Hand and Coonerty and Murphy's structures. Quartz veined and altered samples from KBRC005 featured strong As, Sn and Ww ith a best gold result of 2m @ 0.12g/t from 90 metres, tentatively interpreted to be the Coonerty & Murphy's lode. Both holes also intercepted feldspar porphyries close to, or with mineralised veins. KBRC008 screwed radically clockwise in azimuth, yet successfully tested the flat, west-dipping Welcome Find Mine lode in the weathered zone (42-43m downhole). It also intersected numerous other zones of
quartz±pyrite veining but returned no significant gold values. KBRC009 drilled a relatively deep unnamed shaft (herein named the "Junkyard Shaft") striking 105° and dipping ~80° south. The hole swung severely clockwise in azimuth intersecting the target 25 metres east of the proposed pierce point. The interpreted mine lode was intersected from 79 to 81 metres, within a totally silicified zone that assayed 10m @ 0.14g/t Au (from 74m). A lower zone of strong veining and alteration (from 89 to 102 metres) is interpreted to be a NW striking, linking structure that coalesces with the mine load near this northing. Summary: First phase drilling has provided new, quality geological data that will help KTA understand the bigger picture, the rock types, and controls on gold mineralisation. Surface outcrop observations, geochemistry and the drilling results collectively suggest the presence of several vein generations of varying mineralisation. mineralisation. At least 7 of the 9 recent holes intersected hornfels (silica-magnetite±pyrite altered metasediments and foliated cordierite "schists", i.e. contact metamorphism) implying that the workings are proximal to intrusives. The large angular body underplating the centre of the tenement is now interpreted to be a granitic body that outcrops immediately south of, and 500 metres northwest of the Show Day Mine. The current, early hypothesis is that Bulgandry may fall within the "Plutonic" Zone of Morrison's IRGS model verging on the "Porphyry" Zone. The current scale of the target area, favourable geological setting masked by cover, and the tenor of the geochemical results being generated in this early phase of exploration exhibits the significant potential of a large-scale system still yet to be
uncovered.