Krakatoa Faces Resource Conversion Challenge Amid Georgia Drilling Launch

Exploration Momentum Builds at Zopkhito

Krakatoa Resources Limited (ASX – KTA) has announced the imminent start of its maiden drilling campaign at the Zopkhito Antimony-Gold Project in Georgia. This marks a significant milestone for the company as it seeks to advance one of the world's more promising antimony and gold assets. With drilling contracts signed and mobilisation underway, the company is preparing to execute a 7,000 to 10,000-metre diamond drilling program scheduled for the third quarter of 2025.

The Zopkhito Project, located in the Racha region of Georgia, holds a foreign resource estimate of 225,000 tonnes at 11.6% antimony and 7.1 million tonnes at 3.7 grams per tonne gold, equating to over 815,000 ounces of gold. However, these figures are not yet compliant with the JORC Code, the industry standard for reporting mineral resources. Krakatoa’s drilling campaign aims to convert and expand this foreign estimate into a JORC-compliant mineral resource, a critical step toward unlocking the project's economic potential.

Strategic Capital Raising Supports Exploration

To fund this ambitious exploration program, Krakatoa successfully raised $1.659 million through placements priced at 1.05 cents per share. This capital injection will support not only the diamond drilling but also additional in-adit drilling to sample high-grade veins and gold-rich alteration zones, as well as geophysical surveys designed to identify extensions of the mineralised system. The company ended the quarter with $1.55 million in cash, positioning it well to execute its planned activities.

Alongside the Zopkhito Project, Krakatoa completed a two-hole, 1,000-metre diamond drilling program at its Mt Clere Project in Western Australia. This program targeted gravity anomalies at the Stone Tank Prospect and was partially funded by a $220,000 grant from the Western Australian Government’s Exploration Incentive Scheme. The results of this drilling will inform future exploration strategies in the region.

Looking Ahead – From Exploration to Economic Assessment

Beyond drilling, Krakatoa plans to undertake a preliminary economic assessment (PEA) of the Zopkhito mining licence during the current field season. This assessment will provide an early-stage evaluation of the project's viability and help guide subsequent development decisions. The company’s approach includes integrating geophysical data and in-adit core sampling to better understand the mineralisation and its extent.

Operating in Georgia offers strategic advantages, including duty-free access to large markets through free trade agreements and a business-friendly environment ranked highly for ease of doing business. However, converting the foreign resource estimate to JORC compliance remains a technical and regulatory hurdle, with outcomes uncertain until drilling and evaluation are complete.

With exploration activities ramping up and capital secured, Krakatoa is poised to deliver critical data that could reshape the valuation and prospects of the Zopkhito Project. Investors will be watching closely as drilling results and resource updates emerge in the coming months.