Krakatoa’s Rare Earth Ambitions Hinge on Dingo Pass Approval and Stone Tank Assays

Krakatoa Resources has lodged a strategic application to expand its Mt Clere Project eastward, potentially extending its rare earth footprint by over 9km at Dingo Pass, while completing a key drilling program at Stone Tank.

  • Application submitted for Dingo Pass tenement adjoining Tower REE resource
  • Dingo Pass drilling confirms extensive high-grade clay-hosted rare earth mineralisation
  • Completed 1,000m diamond drilling at Stone Tank Nb-REE Prospect targeting gravity anomalies
  • Tower resource stands at 101Mt at 801ppm TREO, JORC-compliant
  • Stone Tank assay results expected next quarter, drilling partly funded by $220,000 government grant
An image related to Krakatoa Resources Limited
Image source middle. ©

Strategic Expansion at Mt Clere

Krakatoa Resources Limited (ASX – KTA) has taken a significant step to broaden its rare earth element (REE) portfolio by lodging an application for additional tenements at Dingo Pass, adjacent to its established Tower REE deposit in Western Australia. This move could extend the company's clay-hosted REE mineralisation footprint by more than 9 kilometres eastward, substantially enlarging its resource base.

The Tower deposit currently holds a JORC-compliant resource of 101 million tonnes at 801 parts per million total rare earth oxides (TREO), positioning Krakatoa as a notable player in the critical minerals sector. The Dingo Pass area, previously explored between 2020 and 2024, has demonstrated promising results with multiple drill intercepts exceeding 1,000ppm TREO, confirming the continuity of mineralisation beyond Tower’s boundaries.

Robust Drilling Results at Dingo Pass

Analysis of 100 air core holes drilled across Dingo Pass revealed that 74 returned assays above 500ppm TREO, with 31 holes exceeding 1,000ppm. Noteworthy intercepts include 3 metres at 4,512ppm TREO and 4 metres at 3,700ppm TREO, indicating high-grade zones within the clay-hosted system. These results suggest a mineralised footprint at least five times larger than previously delineated, highlighting the prospect’s potential to significantly enhance Krakatoa’s resource inventory.

Advancing Exploration at Stone Tank

Complementing the Dingo Pass expansion, Krakatoa has completed a 1,000-metre, two-hole diamond drilling program at the Stone Tank Nb-REE Prospect, targeting gravity anomalies interpreted as potential carbonatite intrusive bodies. This program, partially funded by a $220,000 grant from the Western Australian Government’s Exploration Incentive Scheme, aims to test the lateral extent of these geophysical targets.

While core processing and detailed logging are underway, assay results are anticipated next quarter. Early geological observations indicate siliceous geology with zones of alkaline mineralisation and sulphide presence, which could signal economically significant niobium and rare earth element mineralisation.

Outlook and Market Positioning

Executive Chairman Colin Locke expressed optimism about the dual progress, emphasizing the strategic importance of expanding the REE footprint in Western Australia. The combination of a growing resource base at Tower and promising exploration at Dingo Pass and Stone Tank positions Krakatoa to capitalize on increasing demand for rare earths, essential for clean energy technologies and advanced electronics.

However, the pending grant of the Dingo Pass tenement and awaited Stone Tank assay results introduce near-term uncertainties. Investors will be watching closely for these developments, which will inform resource modelling and potential project advancement.

Bottom Line?

Krakatoa’s expanding rare earth footprint could reshape its growth trajectory, but key assay results and tenement approvals remain pivotal.

Questions in the middle?

  • When will the Dingo Pass tenement application be granted, and what conditions might apply?
  • What will the Stone Tank drilling assays reveal about the potential scale and grade of Nb-REE mineralisation?
  • How will Krakatoa integrate these new data into updated resource estimates and development plans?