Krakatoa Resources picks up more unpegged ground in Lachlan Fold Belt

Krakatoa Resources (ASX: KTA) continues to show there are still exploration gaps in the Lachlan Fold Belt that, in spite of the recent land rush there, remain so far unclaimed.

The company has made application for what it calls the Rand project, 580sq km in the central zone of the much-favoured New South Wales fold belt.

Rand includes a 40km-long structural corridor lying under cover, and the project area includes the Bulgandra goldfield where there are several historical gold mines, one having produced at 265 grams per tonne of gold.

The application is for an area 60km northwest of the NSW border city of Albury.

This follows Krakatoa being able to acquire the Turon project, just north of Bathurst, last November by application, even though it was ground surrounded by several major mining companies.

1988 drilling hit mineralisation but not followed up 

Historical records from the Bulgandra goldfield show substantial gold grades in early mining, including 512 ounces from 60 tonnes of ore at Show Day Reef and 70oz from 74t at Welcome Find Reef.

Both reefs were then explored between 1985 and 1989 by the unlisted Transit Mining and in late 1988, the company drilled 17 short holes covering the two reefs with several of the holes ending in mineralisation.

One hole returned 9m at 0.41g/t gold, hitting mineralisation 21m from surface, while another intercepted 1m at 1.23g/t gold and a third 6m at 0.28g/t gold — also striking mineralisation at shallow depths.

No follow-up exploration work was carried out and Krakatoa considers the field to be untested.

In 2005, Cullen Resources (ASX: CUL) carried out sampling at Goombargana Hill, which showed anomalous silver, arsenic, bismuth, molybdenum, lead and antimony. Cullen withdrew from the farm-in after its partner failed to meet its obligations.

Early mining at very high grades

Bulgandra was discovered in 1894, and the peak of mining occurred in 1895 and 1896.

Further production took place between 1932 and 1935, when mining was extended to a depth of 30m. High royalty demands from private landowners saw many mines abandoned by 1901 and all mining stopped the following year due to the onset of what became known as the “federation drought”.

Records show that 512oz were recovered at the Show Day Reef workings at an average grade of 265.38g/t gold, while Welcome Find produced 70oz at 29.4g/t gold.

In addition, Lone Hand Reef was worked for 103oz at an average 84.3g/t gold, and Goodwood Reef produced gold at an average 17.5g/t.

Lone Hand and Goodwood have not been explored since being closed some time before 1902.