Krakatoa Resources (ASX:KTA) has made an announcement about a key resource.

Following the announcement shares of Krakatoa Resources fell 10.714% to $0.050.

Krakatoa Resources is pleased to provide an update on exploration RC drilling program targeting strong electromagnetic (EM) conductors at its wholly owned Mt Clere Project.

The Project lies within the Narryer Gneiss Terrane at the northern edge of the Yilgarn Craton in Western Australia and predominantly contains highly metamorphosed and deformed granites and felsic gneisses along with mafic intrusive bodies and rafts of remnant sedimentary units.

When a mining company releases an update about a key resource it?s exciting times for shareholders.

A lot of capital goes into exploration and when a new deposit is found there?s usually a share price boost.

Discovery is the reward stage for investors, particularly of junior mining stocks, searching for undiscovered deposits of natural resources.

When discussing new resource discoveries it?s beneficial to know the difference between greenfield and brown exploration.

Greenfield exploration is looking for mineral deposits in areas that have not been explored.

In brownfield exploration deposits are being sought near or next to an already existing mine.