High-Grade Antimony Play Eyes JORC Upgrade by Early 2026

• Krakatoa Resources (ASX:KTA) is focused on its high-grade antimony-gold asset, the Zopkhito project in Georgia, leveraging historical exploration data to rapidly progress towards establishing a JORC-compliant resource by early 2026.
• Antimony has become strategically critical as global supply is heavily dominated by China, Russia, and Tajikistan, collectively controlling approximately 87% of the market.
• The Zopkhito project has historically documented antimony grades averaging 11.6%, significantly higher compared to peers, providing strong economic potential, particularly given rising demand from military, renewable energy, and industrial sectors.
• Krakatoa intends to move quickly through validation drilling (7,000-10,000 meters) starting mid-2025, alongside metallurgical testing, to potentially fast-track small-scale concentrate production within two years, aiming to capitalize on favorable antimony market conditions.
• The company plans to raise approximately AUD 2 million strategically, targeting long-term, stable investors and considering alternative financing options, including European export credit agencies and royalty-based funding.

Krakatoa Resources (ASX:KTA) has attracted investor attention with its Zopkhito antimony-gold project in Georgia, strategically positioned amidst shifting geopolitical landscapes. 

Market Context: The Rising Significance of Antimony

The global antimony market has witnessed significant disruptions, with China—the world's largest producer—restricting exports approximately two years ago, exacerbating supply concerns in the West. CEO Mark Major highlighted that China, Russia, and Tajikistan collectively control "over 70% of the antimony market," underscoring geopolitical vulnerabilities. These developments have pushed Western nations to identify antimony as a strategic priority, thereby boosting demand for secure and diversified supply sources.

Antimony's primary applications include flame retardants, defense technology, nuclear reactors, renewable energy storage systems, and various industrial processes. Notably, Major emphasized the underscoring urgency of securing new sources, 

"It is not a recyclable element—you use it, you lose it." 

The Zopkhito Project: Historical Data and High-Grade Potential

Discovered by Soviet geologists in 1929, the Zopkhito deposit was extensively explored through underground adits until 1979, accumulating over 27 kilometers of exploration tunnels and 20,000 samples. These historical efforts yielded significant foreign resource estimates, documenting remarkably high antimony grades averaging approximately 11.6%. For context, Major highlighted that comparable global deposits average around 1.3% antimony, marking Zopkhito as an exceptionally high-grade asset.

Importantly, Krakatoa plans to leverage this extensive historical dataset to expedite project validation and development, significantly reducing exploration risks and timelines.

Accelerated Pathway to JORC Compliance

Krakatoa's immediate priority involves conducting confirmatory drilling and metallurgical tests, essential for upgrading historical data to JORC-compliant resources. The company has planned a 7,000–10,000 meter drilling program beginning mid-2025, alongside underground sampling within existing adits, aiming for completion by late 2025. CEO Mark Major anticipates publishing a JORC resource by Q1 2026, positioning Krakatoa for subsequent economic studies and potential fast-tracked production decisions.

Interview with CEO Mark Major

Strategic Funding and Investor Base

Krakatoa's upcoming exploration and validation phase is budgeted at approximately AUD 2 million. While this figure is modest, the company intends to carefully select long-term, strategic investors, explicitly seeking to avoid speculative short-term interests. According to Major, investor selection is crucial because "this will lead onto what we need to do in the next phase in 2026," indicating a preference for stability and long-term growth over short-term gains.

Antimony Pricing Dynamics and Economic Viability

While recent antimony prices have surged dramatically—recent trades reportedly nearing USD 60,000 per tonne—Major acknowledged such levels might not be sustainable in the long term. Nonetheless, he confidently asserted that even at significantly lower prices, the project's unusually high grades would remain economically robust.

Krakatoa's approach mitigates downside risk associated with price volatility, focusing instead on the inherent value of its exceptional grade advantage.

Near-Term Production and Market Positioning

Unlike typical exploration-focused juniors, Krakatoa envisions rapidly transitioning toward production on a smaller scale to capitalize quickly on current market conditions. Major articulated this strategy clearly: 

"We're not thinking eight years away. We're thinking let's bring this into something within two years where we know economically we can do something small on the antimony side. The gold is the upside."

This pragmatic approach allows the company to generate early revenue, reinvesting profits into further development and potentially unlocking additional gold mineralization currently outside the primary antimony zones.

Infrastructure and Permitting Advantages in Georgia

Georgia, increasingly aligning its mining legislation with European standards, presents a favorable jurisdiction for Krakatoa's ambitions. The Zopkhito asset already holds a mining license, significantly streamlining permitting processes required to initiate exploration and eventual production activities. Major emphasized this advantage, noting that the existing legal framework and supportive government stance reduce administrative hurdles and expedite project timelines.

The Investment Thesis for Krakatoa Resources:

• High-grade antimony-gold asset, significantly outperforming global average antimony grades, underpinning strong economic potential.
• Expedited development timeline leveraging extensive historical data, reducing exploration risks, costs, and lead times to JORC-compliant resource estimation.
• Strategic positioning to benefit from geopolitical shifts favoring non-China antimony sources, enhancing investor appeal as a Western-aligned supplier.
• Clear and pragmatic production strategy focusing initially on small-scale antimony concentrate production, offering rapid market entry and revenue generation opportunities.
• Strong jurisdictional advantages, including a supportive regulatory environment in Georgia aligned with European mining standards, facilitating streamlined permitting and development processes.

Macro Thematic Analysis

The global thematic for antimony underscores its emerging importance driven by geopolitical tensions and critical industrial applications. Antimony is essential for military technologies, renewable energy systems, and nuclear reactors, making it strategically vital as international relations strain supply chains traditionally dominated by China and Russia. 

As Western governments increasingly emphasize supply security for critical minerals, new, politically stable sources are urgently needed. Krakatoa's Zopkhito project aligns directly with this strategic imperative, offering investors exposure to a high-grade source of antimony, positioned to benefit from structural market shifts and government-backed financing initiatives. Mark Major succinctly captured this opportunity: 

"With high-grade, you're always the last person standing...that's why I think this project is so important and what really distinguishes us or differentiates us from others."

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