Why Did Kaili Resources Delay Rare Earth Assay Results? ASX Demands Answers
Kaili Resources has responded to ASX inquiries regarding delays in confirming rare earth element assay results from recent drilling, reaffirming compliance with disclosure rules and explaining procedural factors behind the timing.
- pXRF results preliminary and partial, covering only 5 of 14 rare earth elements
- Final laboratory assay results expected by mid-November 2025
- Delays due to external service provider scheduling, not deemed market sensitive by Kaili
- Share price dropped 41% following announcement but attributed to broader market factors
- Kaili confirms full compliance with ASX continuous disclosure obligations
Background on Exploration and pXRF Analysis
Kaili Resources Limited (ASX, KLR), engaged in rare earth element exploration in South Australia's Limestone Coast region, recently completed an aircore drilling program across three sites, Lameroo, Coodalya, and Karte. The company collected 972 samples from 54 holes, each up to 18 metres deep, and employed portable X-ray fluorescence (pXRF) scanning to preliminarily identify the presence of rare earth elements (REEs).
However, pXRF technology used by Kaili only detects 5 of the 14 REEs that constitute total rare earth elements (TREEs), making these results indicative and partial. Confirmatory laboratory assays, which convert individual REE readings into total rare earth oxides (TREO), remain essential for accurate resource evaluation.
Delays and Disclosure Challenges
Kaili disclosed a delay in completing the pXRF scanning process, which was caused by the external geological consultant's scheduling constraints and competing client commitments. The pXRF scanning began approximately two weeks after drilling completion, and the reading of all samples took over a week, extending the timeline beyond initial expectations.
The company had initially anticipated final assay results by mid-October 2025 but now expects these by mid-November 2025. Kaili emphasized that the timing of assay results is dependent on laboratory schedules outside its control and that such delays are common in exploration activities.
Market Reaction and ASX Compliance
Following the announcement of preliminary results and the delay, Kaili's share price fell sharply from $0.29 to $0.17, a 41.4% drop. Kaili attributes this decline more to general market conditions and investor perceptions rather than the delay itself. The company reassured stakeholders that it has complied fully with ASX Listing Rule 3.1 regarding continuous disclosure and has taken appropriate steps to ensure timely market communication.
The ASX had issued an Aware Letter seeking clarification on the timing and materiality of the information disclosed. Kaili responded comprehensively, explaining the nature of pXRF results, the reasons for delays, and the internal review and approval process for announcements. The company confirmed that all disclosures were authorized by its board and competent personnel.
Looking Ahead
With final assay results expected in mid-November, investors will be watching closely for confirmation of the preliminary indications of rare earth mineralization. These results will be critical in assessing the project's potential and guiding future exploration and development decisions. Kaili's transparent handling of the disclosure process and adherence to regulatory requirements may help restore investor confidence after recent volatility.
Bottom Line?
Kaili’s next assay results will be pivotal in validating early signs of rare earth mineralization and shaping market sentiment.
Questions in the middle?
- Will the final assay results confirm the preliminary pXRF indications of high-grade rare earth elements?
- How will Kaili manage external service provider dependencies to avoid future delays?
- What impact will the confirmed assay results have on Kaili’s exploration strategy and share price?
