Krakatoa Resources Launches Strategic Drilling at Mt Clere to Unlock Rare Earth Potential

Key Highlights:

• Krakatoa begins 1,000m diamond drill program at Stone Tank’s Nb-REE targets.
• Drilling focuses on Jagger and Richards gravity anomalies in WA.
• EIS grant-backed program aligns with global rush for rare earths.

As Australia strengthens its foothold in the global critical minerals supply chain, Krakatoa Resources Ltd (ASX: KTA) has kicked off a pivotal drilling campaign at its Mt Clere Project in Western Australia, targeting rare earth and niobium-rich zones that could redefine the company’s resource potential. The move comes at a time when geopolitical uncertainty and Chinese export controls are pushing global manufacturers to seek stable alternative supplies of rare earth elements (REEs).

On Friday, July 4, Krakatoa confirmed the commencement of a ~1,000m diamond drill program at the Stone Tank Prospect — part of its wholly owned Mt Clere Project. The two-hole campaign, focusing on the high-density gravity targets “Jagger” and “Richards”, aims to investigate potential carbonatite-hosted critical mineral systems. The drilling is partially funded by a $220,000 grant awarded under Western Australia’s Exploration Incentive Scheme (EIS)

“This is a highly strategic step in our exploration journey. The Jagger and Richards targets are extensive, each over 1 kilometre in length. With Jagger aligned to a magnetic high and Richards along a structural corridor, we believe both are prospective for hosting intrusive bodies with valuable mineralisation,” said Executive Chairman Colin Locke.

Source: KTA ASX Announcement

The targets are considered shallow intrusive systems that may host critical metals, including niobium and rare earth elements — both of which are on the radar of western governments for supply chain resilience. The Stone Tank gravity anomalies were identified via detailed geophysical surveys and interpreted to reflect significant subsurface mineral systems.

2-hole, ~1000m diamond drilling program has commenced at our Mt Clere Project in WA, targeting high-density gravity anomalies. #Drilling is supported by a $220k EIS grant with drilling expected to run for several weeks.

Read more: https://t.co/Oabc70bEJn$KTA #REE #niobium pic.twitter.com/C8lUudVuy2

— Krakatoa Resources (@Krakatoa_Res) July 4, 2025

Why Rare Earths Matter Now

The timing of Krakatoa’s drilling program is significant. Rare earths — especially heavy REEs like dysprosium and terbium — are in sharp focus after China, on April 4, 2025, restricted the export of seven key rare earths amid escalating geopolitical tensions. These restrictions have sent ripple effects across aerospace, EV, and renewable energy sectors, which rely heavily on stable REE supply. China's control over 85–90% of global processing capacity has only magnified concerns.

Australia’s Strategic Role in a Fragmented Market

With major economies like the US, EU and Japan scrambling to secure non-Chinese sources of critical minerals, Australia is emerging as a key player. Yet, the nation still faces infrastructure and processing hurdles. Krakatoa’s Mt Clere drilling — if successful — could place the company in the rare position of not only discovering valuable deposits but contributing to Australia’s downstream ambitions.

According to government figures, Australia accounts for just over 3% of the world’s rare earth production, but its deposits are vast and largely underexplored. Recent support through funding mechanisms like the National Reconstruction Fund and government-backed loans to processors like Lynas and Iluka signal Canberra’s resolve to build a sovereign supply chain.

Krakatoa's Stone Tank project, located on the northwest margins of the Yilgarn Craton, could add a new layer of opportunity — especially with its dual exposure to niobium (used in high-performance alloys and superconductors) and rare earths.

A Potential Carbonatite System

Geophysical interpretations suggest that both targets could represent carbonatite-intrusive or alteration systems—important geological hosts of rare earth element and niobium. These mineral systems are strategically significant in the context of global energy and defense supply chains.

Source: Krakatoa Resources ASX Announcement

Figure models released by the company show high-density gravity anomalies with corresponding magnetic signatures (at Jagger) and structural alignments (at Richards), further validating the site’s targeting rationale.

The current phase of drilling aims to determine the source of these geophysical signatures and provide clarity on the potential for Nb-REE mineralisation, possibly aligned with global supply-demand shifts for niche metals.

Source: KTA ASX Announcement

WA’s Role in Critical Minerals Security

Krakatoa’s activities align with Australia’s broader ambition to become a leading supplier of ethically sourced and strategically vital critical minerals. Western Australia Government, in particular, is actively supporting exploration into non-traditional and high demand commodities like REEs, niobium, moving beyond its legacy dominance in iron ore and gold. 

Drilling at Stone Tank is expected to take several weeks, with core samples to be logged, tested, and reported in subsequent updates. The campaign will evaluate both magnetic and gravity targets, with the potential to delineate a mineralised intrusive system akin to carbonatites found in globally significant REE and niobium deposits.

The commencement of drilling marks a key milestone in Krakatoa’s strategic push toward unlocking critical mineral value within its WA tenements. While results are pending, the early-stage nature of this program and the support from the EIS grant reflect strong institutional backing and geological conviction.

What’s Next for Krakatoa?

Drilling at Mt Clere is expected to run for several weeks, with updates likely as core samples are recovered and logged. Should results affirm the geophysical modelling, Krakatoa could fast-track further exploration or potential resource definition in one of Australia’s most promising critical mineral frontiers.

“This is more than just a drilling program,” Locke added. “It’s about positioning Krakatoa to be part of the global solution to rare earth supply risks. We are leveraging geoscience, government support and our team’s vision to build value for shareholders and contribute to the critical minerals future.”

As the world’s critical minerals balance continues to tilt, explorers like Krakatoa are not only chasing discovery — they’re chasing relevance in a rapidly realigning global economy.

As of 12:00pm AEST on Friday, July 4, 2025, Krakatoa Resources Ltd (ASX: KTA) is trading at A$0.012.

This is a sponsored article, presented by Skrill Network. Krakatoa Resources (ASX:KTA) is a client. Information sourced from KTA ASX announcements and Skrill Network’s in-depth market research.