Kaili Resources has responded to ASX inquiries following volatile trading, confirming imminent rare earth element drilling in South Australia and revealing detailed shareholder data.
- Approval received for rare earth element drilling in South Australia
- Initial Aircore drilling program planned for September 2025
- Top 20 shareholders hold over 93% of issued shares
- Potential expansion into gold and copper exploration considered
- Company confirms compliance with ASX continuous disclosure rules
Background to the ASX Query
Kaili Resources Limited (ASX – KLR) recently faced intense scrutiny from the Australian Securities Exchange after its share price experienced dramatic fluctuations in August 2025. From a low of $0.006 in late July, the stock surged to highs above $3.00 within weeks, prompting ASX to seek clarity on the drivers behind this volatility.
In response, Kaili provided a comprehensive letter addressing ASX’s queries, including detailed shareholder information and a clear outline of its current and planned exploration activities.
Focus on Rare Earth Elements Exploration
Kaili’s primary operational focus remains on exploring for Rare Earth Elements (REE) within three granted tenements in South Australia – Lameroo, Karte, and Coodalya. The company has secured environmental and rehabilitation approvals (EPEPRs) to conduct an Aircore drilling program along roadside verges, targeting shallow holes up to 20 metres deep.
The drilling campaign is tentatively scheduled to commence in September 2025, contingent on the availability of drilling crews, traffic management, and favourable weather conditions. The program aims to drill approximately 1,000 metres in total, with samples scanned on-site using portable X-ray fluorescence (pXRF) technology to identify REE presence before sending selected samples for laboratory assays.
This staged approach is designed to manage costs efficiently while providing timely data on mineralisation. Results from the laboratory assays are expected by late October or early November 2025, although delays are possible due to high demand at testing facilities.
Shareholder Structure and Market Implications
The company disclosed that its 20 largest shareholders collectively control over 93% of the fully paid ordinary shares, with the largest single holder, Treasure Unicorn Limited, owning more than half of the issued capital. This concentrated ownership structure may influence future corporate decisions and market liquidity.
Trading volumes and price movements in mid-August were significant, reflecting heightened market interest possibly linked to the drilling approval announcement and anticipation of exploration results.
Future Prospects and Strategic Outlook
Beyond the immediate drilling program, Kaili indicated potential plans to seek additional tenements for REE and other critical minerals exploration across Australia. The company also flagged a tentative interest in gold and copper projects, contingent on market conditions, though no concrete investigations or timelines have been established.
The approved EPEPRs allow for up to 6,000 metres of drilling over 12 months, providing flexibility for expanded exploration if initial results prove promising. Kaili’s management has emphasized compliance with ASX listing rules and continuous disclosure obligations throughout this period of heightened market activity.
Bottom Line?
Kaili’s upcoming drilling results will be pivotal in validating its rare earth exploration potential and shaping its strategic direction.
Questions in the middle?
- Will Kaili’s initial drilling confirm commercially viable rare earth mineralisation?
- How might the concentrated shareholder base impact future capital raising or strategic moves?
- What timeline and criteria will Kaili use to pursue gold and copper exploration projects?