Krakatoa Resources Ltd (ASX: KTA) is one of the latest Australian companies to start putting holes in the ground at international sites with the aim of delineating antimony-gold resources and efficiently digging them up. “THE RIGHT COMMODITIES AT THE RIGHT TIME,” the junior miner says.
In this case, the prospector will be targeting former Soviet territory in the state of Georgia at its Zopkhito project.
This week, Krakatoa announced that it has pulled together “firm commitments” for a C$1.1-million-dollar private placement to fund an inaugural drill campaign. It will start next month.
The junior has described the program as “confirmation re-drilling” as the site is already known to host robust resources. Based on an estimate completed by another company in the late 2000s, it is estimated to contain 26,000 tonnes of antimony and over 815,000 ounces of gold.
“We’ve got two rigs coming and we’re trying to get a third,” Executive Chairman Colin Locke said in an interview. He explained that Krakatoa was currently establishing an access route for the drill rigs.
“We had to repair a couple of bridges,” he explained. “That’s been done beautifully and we’re ready to go.”
Converting the current historical resource estimate into an updated one in compliance with the Joint Ore Reserves Committee (JORC) Code, established in 2012, is the aim of the game. It’s a mandatory standard for mining companies listed on the Australian Securities Exchange and the NZX.
A recent report from the Aussie firm East Coast Research gave Krakatoa a 12-month share target over 350 per cent higher than the current trading price at AUD$0.047.
Read more: NevGold’s latest drill results extend priority target at Limo Butte by over 200 metres
Australian juniors pursue antimony in North America
The United States has become a popular destination for other ASX-listed operators. Antimony and gold prices have ascended to unprecedented heights in recent months.
Felix Gold Ltd (ASX: FXG) (OTCMKTS: FXGDF) and Nova Minerals Ltd (ASX: NVA) (OTCMKTS: NVAAF) (FRA: QM3) just started new drill programs targeting the critical mineral and precious metal in Alaska.
Also worthy of interest is Resolution Minerals Ltd (ASX: RML), which just acquired a project next to the most significant antimony resource in the United States. The Horse Heaven site in Idaho resides adjacent to the Stibnite gold-antimony operation being developed by Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA). It is projected to be capable of catering to 35 per cent of American demand, but not until production begins within the next few years.
Read more: Perpetua’s latest financing sends stock down by over 20%
These two states, Nevada and Washington have become highly prospective for domestic antimony production assets in the country. The Americans are currently scrambling to find reliable sources of the metalloid element due to China’s decision to implement strict export controls on the mineral in December.
Trade war tensions between the U.S. and China have eased, but acquiring antimony from the world’s top supplier is still a difficult task for the United States at the moment.
Developing major resources like Stibnite and other properties with proven antimony mineralization appears to be the best path forward for America’s national security future. Nevada’s Limousine Butte project held by NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) is one such notable prospect.
Read more: NevGold pulls up even more promising antimony grades from Nevada property
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