Krakatoa gets license extension for Donggala project

By Romel S. Gurky

ASX-listed Krakatoa Resources Limited announced Wednesday that the exploration license covering the company?s 80 percent owned Donggala gold project in Central Sulawesi, Indonesia, has been extended by the Regency of Donggala until 8 April 2016.

Managing Director Kevin Kwok commented, "We are very pleased that the exploration license covering the Donggala Project has been secured until 8 April 2016 and this puts the company in a strong position to build on the encouraging mineral prospects identified to date. The extension also demonstrates the Regency of Donggala?s commitment and support to the development of mining assets in the region.?

The company anticipates Clean and Clear Status confirmation from the Ministry of Energy and Mineral Resources in due course.

The Donggala Project covers a total area of 7,200 hectares and is located 20 kilometers northwest of Palu in the central west of the Donggala Peninsula in Central Sulawesi . The Donggala Project has displayed encouraging gold prospects, with the mineralization styles near Palu belonging to the copper-molybdenum porphyry intrusive-epithermal style of related events. The geological setting in combination with locals panning coarse gold in the streams indicates several coherent target zones.

Editing by Reiner Simanjuntak