Krakatoa Resources Restarts Drilling at Zopkhito Antimony Gold Project

Krakatoa Resources Restart Drilling at Zopkhito Antimony Gold Project in Georgia

Krakatoa Resources Limited (ASX: KTA) is set to restart drilling at its Zopkhito antimony gold project in Georgia following strong 2025 exploration results and the securing of a crucial two-year licence extension. With site preparations well advanced and drill rigs already mobilised to camp, the company aims to commence drilling within weeks in what could prove a transformational field season for the junior explorer.

The announcement builds on validation drilling that confirmed high-grade mineralisation extends beyond historical workings across multiple target zones. Furthermore, the timing coincides with growing global interest in antimony as a critical mineral, making Zopkhito an increasingly strategic asset.

CEO Mark Major commented: "The 2025 drilling program delivered strong results and further demonstrated the high-grade antimony and gold potential at Zopkhito. Securing an additional two-year exploration extension is a highly positive development, giving us the runway to build on this momentum and gives us added flexibility as we move the project forward. With site access and snow clearance well advanced, we are on track to restart drilling in the coming weeks."

What Is the Zopkhito Project?

Located in the Racha region of Georgia, the Zopkhito antimony gold project covers 1,779 hectares and is held under an existing exploration-mining licence valid until March 2042. Krakatoa holds an exclusive option to acquire up to an 80% interest in the project.

The scale of the asset presents an immediately compelling proposition. Zopkhito carries a Foreign Resource Estimate that provides a substantial foundation for ongoing exploration activities:

Note: These figures represent a Foreign Resource Estimate and are not reported in accordance with the JORC Code 2012. A competent person has not done sufficient work to classify this estimate as a Mineral Resource under the JORC Code 2012. It is uncertain that further exploration work will allow the foreign estimate to be reported in accordance with the JORC Code 2012.

The resource base is supported by extensive historical data, including:

• Approximately 27 kilometres of underground exploration adits (horizontal tunnels)
• More than 15,000 historical channel and geochemical samples
• Prior LiDAR (aerial mapping) and IP geophysical surveys (underground mineral detection)

This historical foundation provides Krakatoa with a significant head start, reducing the early-stage discovery risk typically associated with greenfield exploration projects.

2025 Drilling Confirmed the Geology — 2026 Builds on It

The 2025 exploration programme targeted areas between historical adits where previous sampling indicated high-grade mineralisation. The results validated the geological model in a meaningful way.

Key outcomes from the 2025 field season include:

• High-grade antimony and gold mineralisation confirmed beyond the historical workings
• Mineralisation intersected across multiple target zones, providing geological validation of the historical model
• Evidence of an extended gold alteration system, in addition to high-grade quartz-antimony vein development

These outcomes significantly reduce risk for the 2026 programme by confirming that the ore system extends beyond areas already explored historically. This is a crucial distinction that opens potential for a larger, more continuous mineralised footprint.

As Krakatoa Resources prepares to restart drilling at the Zopkhito antimony gold project in Georgia, the company benefits from validation that mineralisation continues beyond known areas, providing greater confidence heading into the new field season.

A Two-Year Licence Extension Adds Strategic Runway

One of the most material developments is the granting of an additional two-year extension to the exploration period under Zopkhito's active mineral extraction licence. The decree was signed by Georgian Prime Minister Irakli Kobakhidze in early June 2026.

This extension proves significant for several reasons:

1. Extended time horizon — additional runway allows Krakatoa to execute a thorough and methodical resource definition programme without the pressure of an imminent licence expiry
2. Flexibility for development studies — the company now has time to pursue metallurgical optimisation, preliminary mining studies, and environmental baseline work in parallel with drilling
3. Signal of in-country alignment — the extension "substantiated the Company's view and position with Georgia; welcoming mineral and resource developments"

2026 Programme: From Discovery to Resource Definition

With site access and snow clearance well advanced as of early June — including drill rig mobilisation to camp captured on 8 June — the 2026 field season is ready to begin. Surface and underground drilling activities are expected to commence this month.

The 2026 programme represents a step-change in ambition compared to prior seasons, with a clear focus on advancing the project toward a definitive resource and development pathway:

The overarching goal of the 2026 programme is to generate the data required to publish a JORC-compliant Mineral Resource Estimate — a defining milestone that would significantly re-rate the project in the eyes of institutional and retail investors alike.

Understanding JORC: Why It Matters for Investors

What Is a JORC Mineral Resource Estimate?

JORC stands for the Joint Ore Reserves Committee. The JORC Code is an internationally recognised standard for reporting mineral resources and ore reserves, used widely by the Australian mining and exploration industry.

A JORC-compliant Mineral Resource Estimate represents an independent, standardised assessment of the quantity and grade of mineralisation within a defined area. It is classified by confidence level into Inferred, Indicated, or Measured categories.

Why Does It Matter for Investors?

For investors, the publication of a JORC resource represents a transformational milestone for a junior explorer. It:

• Establishes a formally recognised and independently verified resource base
• Enables comparison with peer companies and industry benchmarks
• Unlocks institutional investor interest and supports more sophisticated project financing conversations
• Provides the foundation for Pre-Feasibility and Feasibility Studies, which underpin development decisions

Currently, Zopkhito's resource sits as a Foreign Resource Estimate — not yet compliant with the JORC Code 2012. However, the 2026 drilling programme is specifically designed to generate the data needed to bridge that gap.

Antimony: A Critical Metal in Increasing Focus

Antimony is not a commodity most retail investors know well, but it is increasingly attracting attention as a critical mineral given its role in flame retardants, lead-acid batteries, military applications, and — increasingly — energy storage technologies. Supply is highly concentrated globally, making new, high-grade deposits outside traditional producing regions strategically interesting.

Zopkhito's Foreign Resource Estimate of 225,000 tonnes at 11.6% Sb for approximately 26,000 tonnes of contained antimony represents a high-grade position in the metal. In addition, the project's dual-commodity nature — with a concurrent gold resource of approximately 815,119 ounces at 3.7 g/t — provides meaningful exposure to gold upside.

What Makes Antimony Valuable?

Antimony is classified as a critical mineral because:

• Limited supply sources — production is concentrated in a small number of countries
• Industrial applications — essential for flame retardants in textiles, plastics, and construction materials
• Energy storage — growing demand in advanced battery technologies
• Defence applications — used in ammunition, night vision equipment, and military hardware

The strategic nature of antimony supply chains has led governments worldwide to identify it as a priority mineral for domestic supply security.

Investment Thesis: Why Zopkhito Deserves Attention

Krakatoa's investment case rests on several converging factors as the company prepares to restart drilling at the Zopkhito antimony gold project in Georgia:

• High-grade, dual-commodity exposure — antimony and gold in a single project provides both critical minerals leverage and a gold component that broadens economic potential
• Validated geology — 2025 drilling confirmed mineralisation extends beyond historical workings, significantly reducing geological risk heading into 2026
• Extensive historical data — 27km of underground adits, 15,000+ samples, and geophysical surveys provide an unusually strong dataset for an early-stage project
• Licence security — a mining licence valid to 2042, now extended with an additional two-year exploration period, provides long-term stability
• Clear near-term catalysts — drilling restart imminent, with a programme designed to deliver a JORC-compliant resource estimate
• Strong option position — Krakatoa's exclusive option to acquire up to 80% of the project provides leverage to value creation without full upfront capital commitment

What to Watch: Upcoming Milestones

The coming months present a series of value-creating milestones that investors should monitor closely:

1. Drilling restart — surface and underground drilling expected to commence in June 2026
2. Drill results — assay results from the 2026 programme to be reported as they become available
3. Metallurgical test work — outcomes will inform processing assumptions for future economic studies
4. Preliminary mining studies — early-stage assessment of development pathways
5. JORC resource estimate — the culmination of the 2026 programme, providing a formally classified and reported resource for the first time

Krakatoa Resources has positioned itself as an emerging antimony-gold developer with a high-grade, historically validated project in Georgia. With drilling restarting imminently following strong 2025 results, a freshly extended exploration licence, and a programme designed to deliver a JORC-compliant resource estimate, Zopkhito is entering one of its most consequential field seasons to date. Investors with an interest in critical minerals and gold exploration should monitor KTA closely in the months ahead.

Technical Terms Glossary

• Antimony (Sb): A silvery-white metalloid used in flame retardants, alloys, batteries, and increasingly in energy storage technologies. Listed as a critical mineral by numerous governments.
• JORC Code: The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves — the industry standard for resource reporting on the ASX.
• Foreign Resource Estimate: A resource estimate prepared under a standard other than JORC 2012. Not directly comparable to a JORC-compliant Mineral Resource and subject to additional uncertainty.
• Mineral Resource Estimate (MRE): A formal, independently assessed estimate of mineralisation classified by confidence level (Inferred, Indicated, Measured).
• Adit: A horizontal tunnel driven into the side of a hill or mountain to access underground mineralisation during historical exploration or mining.
• LiDAR: Light Detection and Ranging — an aerial remote sensing technology used to map surface topography with high precision.
• IP (Induced Polarisation): A geophysical survey technique used to detect sulphide mineralisation at depth, commonly used in gold and base metal exploration.
• g/t: Grams per tonne — a standard unit of grade measurement for gold and other precious metals.
• Sb%: The percentage by weight of antimony within a rock sample or resource estimate.

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