KRAKATOA RESOURCES

(ASX:KTA)

Company Profile

Krakatoa Resources has secured the right projects and commodities at the perfect time, aligning the company’s growth with strong demand from the electric revolution.

The explorer has exposure to the critical rare earth magnet metals needed to fuel the global clean energy transition through EVs, wind turbines, aerospace, and robotics.

Importantly, and a major competitive advantage for Krakatoa, is the company is developing Australia’s few clay rare earth resources.

KTA’s Mt Clere project hosts a large resource of 101 million tonnes at 840 parts per million of total rare earth oxides (TREO) at the Tower prospect, located in the mineral rich Yilgarn Craton in Western Australia.

Forty per cent of that resource is already in an indicated category.

Tower was the first major discovery at Mt Clere, which contains significant and widespread clay-hosted ionic rare earth elements (REEs) at several of its prospects, with mineralisation starting at surface.

Clay-hosted ionic rare earth deposits offer explorers advantages over their hard rock counterparts.

They often contain a higher proportion of magnet rare earths, and crucially, the heavy rare earths – the type critical for use in wind turbines and electric vehicles.

Clay-hosted deposits are also easier to explore, drill and mine, and processing is cheaper. Only a handful of these types of projects are being developed outside of China, which dominates the market.

Krakatoa’s aggressive exploration has delivered significant, near-surface, high-grade REEs and also identified valuable heavy mineral sands comprising highly sought after minerals such as zircon, rutile, and ilmenite.

There is still extensive exploration upside, with the company having outlined an exploration target of up to 481 million tonnes TREO and only 20% of the target drilled so far.

Mt Clere also provides strong potential for a major base metals discovery, with targets identified that show similarities to Chalice Mining’s (ASX:CHN) Gonneville deposit at its company-making Julimar nickel-copperplatinum group elements (PGE) discovery.

Krakatoa began drilling for basement sulphides in late November 2022 and only a short time later reported that it had encountered multiple sulphide zones in all holes, with one intersection returning a wide 30m zone of up to 30% sulphides from 183m downhole.

Further growth potential lies within the historic King Tamba tantalum mine that hosts other specialty metals like rubidium, lithium, niobium, and tin.

Krakatoa is preparing to deliver a maiden resource for the project, which is located 80km northwest of Mt Magnet within the Dalgaranga Greenstone Belt in Western Australia, but there is still plenty of exploration upside to be investigated further.

In October 2022, the company revealed it had struck high-grade rubidium over wide zones of up to 71m thick, with mineralised extensions immediately along strike and east of the historic open pit.

Krakatoa has set an exploration target of up to 3.18 million tonnes at the King Tamba project.

KEY POINTS

◾ Company Name: Latin Resources

◾ Company ASX code: LRS

◾ Key Commodities: Lithium, kaolin-halloysite, copper

◾ Key Personnel: Chris Gale, Managing Director | David Vilensky, Chairman | Peter Oliver, Non-Executive Director

◾ Locations: Brazil, Australia, Argentina, Peru

◾ Market Cap as of 25/01/23: $275.20M

◾ 52-Week Share Price Range at 25/01/23: $0.030 - $0.228

◾ W: latinresources.com.au

Investment Highlights

◾ Delivered maiden resource in December 2022 of 13.3 million tonnes at 1.2% lithium for the Colina deposit in Brazil.

◾ Significant upside at Colina with an additional exploration target of up to 22 million tonnes and an aggressive 65,000m program of drilling planned for Q1 2023.

◾ Encouraging metallurgical results showing average recoveries of 80.5% and production of high-grade concentrate up to 6.6% from simple heap leaching, which is consistent across the known ore body.

CHRIS GALE MANAGING DIRECTOR

Latin Resources

(ASX:LRS)

COMPANY PROFILE

Latin Resources is taking the same triedand-tested path as its US$4 billion TSX-V listed neighbour in Brazil – Sigma Lithium Resources – which is on track to reach commercial production from the largest lithium hard rock deposit in the Americas in April 2023.

LRS has a huge foothold in the highly prospective Salinas Lithium Corridor, with its flagship Salinas project sitting in a geological setting like Sigma Lithium’s Grota do Cirilo project, which hosts a world-class resource of 85.7 million tonnes (Mt) at 1.43% Li2O.

It was here that Latin ended 2022 on a high note with the delivery of a maiden resource of 13.3Mt at 1.2% Li2O for the Colina deposit –within that broader Salinas project.

The substantial deposit has significant growth potential, with an exploration target set between 13.5Mt and 22Mt within a grade range of 1.2% to 1.5% Li2O.

Recent drilling 500m to the west of Colina, at the Colina West prospect, has also confirmed the continuity of the thick high-grade spodumene pegmatites previously intersected, as well as uncovered a new zone of mineralisation that remains open in all directions.

LRS has also pinpointed extensions of the Colina deposit to the south and outcropping pegmatites containing spodumene over a 4km strike at the Salinas South target.

These potential parallel mineralised pegmatite systems have significant scale implications for Salinas.

The company has an aggressive drilling program planned for 2023, doubling the number of rigs it has on site to eight to complete a massive 65,000m of drilling.

The significant momentum in the lithium space has prompted Latin Resources to fast track the Salinas project towards a definitive feasibility study, with a preliminary economic assessment currently underway.

The completion of the PEA will pave the way for LRS to progress straight into a definitive feasibility study and investigate the potential to commission a DMS pilot plant at the Salinas project.

Meanwhile, Latin is progressing exploration activities over its diversified portfolio of sustainable minerals in Australia and Latin America.

In Western Australia the key focus is halloysite and kaolin at its Cloud Nine project. LRS has an ongoing $3.2 million research project with independent research organisation CRC CARE to investigate the potential for the use of halloysite to be utilised in the reduction of methane emissions in the agricultural sector.

In South America, the focus is on lithium in Brazil and Argentina, and copper in Peru.

Lithium and copper are in high demand and have been on an upward trajectory thanks to the electrification push continuing its rapid ramp up around the globe.

Lithium has been the standout for LRS, with the price notching huge gains over the past couple of years. Entering the new year with significant momentum behind it in this space, 2023 looms large for Latin Resources.

Key Points

◾ Company Name: Narryer Metals

◾ Company ASX code: NYM

◾ Key Commodities: Platinum group elements, rare earths, nickel, copper

◾ Key Personnel: Gavin England, Managing Director & Technical Director

| Richard Bevan, Non-Executive Chairman | Damon O’Meara, NonExecutive Director

◾ Locations: Western Australia, South Australia

◾ Market Cap as of 25/01/23: $6.65M

◾ 52-Week Share Price Range at 25/01/23: $0.094 - $0.300

◾ W: narryer.com.au

Investment Highlights

■ Tight capital structure with just 47,550,001 shares on issue; good cash position; costs directed into exploration.

■ Strong newsflow pipeline anticipated, with a portfolio of exciting critical metal targets to test over the coming 3-12 months backed by a team with a successful history of exploration and discovery.

■ Management assessing opportunities to increase shareholder value, including an option agreement to acquire the highly prospective REE ground at the Rocky Gully Project in Western Australia’s south west.

GAVIN ENGLAND MANAGING DIRECTOR & TECHNICAL DIRECTOR