Kaili Reports Up to 356 ppm Rare Earth Oxides in Initial Drilling at Lameroo
Kaili Resources Limited reports encouraging early drilling outcomes from its South Australian rare earth projects, with expanded exploration plans pending environmental approvals.
- Holds 100% interests in three rare earth tenements in Limestone Coast, SA
- Initial drilling in February 2024 returned notable rare earth oxide grades
- Pending environmental approvals for expanded drilling programs
- Exploration expenditure modest at $11,000 for the quarter
- Cash position supported by interest-free loans and $1 million unused finance facility
Rare Earths Focus Amid Market Dynamics
Kaili Resources Limited continues to sharpen its focus on rare earth elements (REE), recognising their growing strategic importance across global industries. While gold prices remain attractive, the company is cautious about long-term gold project acquisitions, instead prioritising rare earths exploration in South Australia’s Limestone Coast region.
Expanding Footprint in Limestone Coast
The company holds full ownership of three tenements, Lameroo, Karte, and Coodalya, covering nearly 2,000 square kilometres within the Murray Basin. This region is gaining attention following Australian Rare Earths’ success nearby, which reported a substantial resource estimate and secured government co-funding for feasibility studies. Kaili’s tenements are similarly prospective for ionic clay-style rare earth deposits, a promising style for extraction.
Encouraging Early Drilling Results
In February 2024, Kaili completed an initial drilling program along road verges at Lameroo, returning total rare earth oxide (TREO) grades up to 356 ppm over one metre intervals. These results, while preliminary, provide a valuable reference for designing more extensive drilling campaigns. The company has since doubled its acreage with the addition of Karte and Coodalya tenements, positioning itself for a broader exploration push.
Awaiting Environmental Approvals for Next Phase
During the June 2025 quarter, Kaili conducted vehicular traverses across all three tenements to refine target areas and submitted exploration program applications focused on environmental protection and rehabilitation. The company is awaiting approval from South Australia’s Department of Energy and Mining, a critical step before commencing the planned aircore drilling program. Selected drill sites on council road verges aim to minimise environmental and community disruption.
Financial Position and Outlook
Kaili’s exploration expenditure for the quarter was modest at $11,000, reflecting a measured approach as it awaits regulatory green lights. The company’s cash reserves stood at $15,000, supplemented by an unused $1 million finance facility from related parties, providing a runway for upcoming activities. No production or development has commenced, and the company continues to rely on interest-free loans maturing in 2026.
Northern Territory Gold and Copper Project on Hold
Meanwhile, Kaili’s gold and copper exploration licence application near Tennant Creek remains pending, with no activity reported this quarter. This project represents a secondary focus, with the company prioritising rare earths given their strategic market demand.
Bottom Line?
Kaili Resources’ next steps hinge on environmental approvals, with upcoming drilling results poised to shape its rare earths potential.
Questions in the middle?
- When will Kaili receive environmental approvals to commence expanded drilling?
- How will Kaili’s rare earth grades compare to regional peers as more data emerges?
- What is the company’s strategy to transition from exploration to resource development?
