Kaili Resources Advances Rare Earths Drilling with Promising Early Results
Kaili Resources has completed a second drilling program targeting rare earth elements in South Australia, revealing encouraging preliminary results that underscore the potential of its Limestone Coast projects.
- Completed 54-hole drilling program across three tenements in Limestone Coast
- Preliminary pXRF results indicate significant rare earth element mineralisation
- Laboratory assays pending to confirm Total Rare Earth Oxide grades
- Exploration expenditure of $77,000 for the quarter
- Strong funding position with $894,000 available and extended interest-free loans
Exploration Focus on Rare Earth Elements
Kaili Resources Limited continues to prioritise exploration of rare earth elements (REEs), recognising their critical role across multiple high-tech industries. The company holds 100% interests in three tenements; Lameroo, Karte, and Coodalya; covering nearly 2,000 square kilometres in South Australia's Limestone Coast region. These tenements are strategically located within the Murray Basin, an area known for ionic clay-style REE deposits.
Second Drilling Program Completed
Following initial encouraging drilling results in early 2024, Kaili Resources secured environmental approvals and completed a second aircore drilling program in September 2025. This program comprised 54 holes drilled to depths of up to 18 metres, covering a broad area across the three tenements. The drilling was conducted with minimal environmental impact, utilising roadside verges to avoid disruption to private land and local flora.
Preliminary Results Show Promise
Initial screening of 972 samples using portable X-ray fluorescence (pXRF) technology revealed significant concentrations of key rare earth elements, including cerium, lanthanum, yttrium, praseodymium, and neodymium. Notable intersections included 2 metres at 279 ppm and 1 metre at 392 ppm TREO (Total Rare Earth Oxides) equivalents. While these pXRF results are partial and indicative, samples have been forwarded to ALS Laboratory in Adelaide for comprehensive assays to confirm the grade and guide future drilling efforts.
Financial and Operational Position
Exploration expenditure for the quarter was $77,000, reflecting a disciplined approach to advancing the projects. Kaili Resources reported a cash balance of $24,000 at quarter-end, supplemented by $870,000 in unused interest-free financing facilities extended by related parties, providing an estimated 7.4 quarters of funding at current expenditure levels. The company also maintains an application for a gold and copper exploration licence in the Northern Territory, though no activity occurred there during the quarter.
Looking Ahead
With laboratory assay results pending, Kaili Resources is positioned to refine its exploration strategy and potentially accelerate drilling programs. The company’s focus on ionic clay REE deposits aligns with growing global demand for these critical minerals, particularly those used in battery and clean energy technologies. Investors will be watching closely for assay confirmations and updates on the Northern Territory licence application.
Bottom Line?
Kaili Resources’ recent drilling success and solid funding base set the stage for critical assay results that will shape its rare earths exploration trajectory.
Questions in the middle?
- What will the laboratory assays reveal about the true grade and economic potential of the REE deposits?
- How will Kaili Resources prioritise further drilling and development based on these preliminary results?
- When will the Northern Territory gold and copper exploration licence be granted, and what impact might it have on the company’s portfolio?