Early Assay Results Highlight Exploration Risks but Signal Rare Earth Potential

• Significant Total Rare Earth Oxide (TREO) assay results up to 517 ppm
• Drilling conducted across three tenements, Lameroo, Coodalya, and Karte
• Targeting ionic clay-style deposits within the Loxton/Parilla Sands
• Results indicate particularly strong potential in the Coodalya tenement
• Plans for further infill and extension drilling to refine resource understanding

Exploration Context and Regional Significance

Kaili Resources Limited has released laboratory assay results from its September 2025 aircore drilling campaign at the Limestone Coast Mallee Project in South Australia. The program targeted three tenements; Lameroo (EL 6856), Coodalya (EL 6978), and Karte (EL 6977); located approximately 200 kilometres east of Adelaide. These tenements overlay the Loxton/Parilla Sands, a geological formation known for hosting ionic clay-style rare earth element (REE) deposits.

The assays, conducted by ALS Laboratories in Adelaide, confirm the presence of significant rare earth mineralisation, with Total Rare Earth Oxide (TREO) concentrations reaching up to 517 parts per million (ppm) in selected samples. This level of TREO is notable for early-stage exploration and aligns with regional discoveries, including Australian Rare Earths’ nearby resource estimate of 236 million tonnes at 748 ppm TREO.

Drilling Program and Technical Highlights

The aircore drilling comprised 54 vertical holes totalling 973 metres, spaced widely along road verges to efficiently cover large areas at low cost. Samples were collected at one-metre intervals and analysed for a comprehensive suite of rare earth elements. The program focused on the fine clay fraction of the Tertiary strandlines, which are known to concentrate REEs in this basin.

Among the key results, drill hole 25CDAC019 returned 1 metre at 517 ppm TREO from 8 to 9 metres depth, while other holes such as 25CDAC004 and 25CDAC024 also delivered significant assays above 440 ppm TREO. These findings suggest that the Coodalya tenement, in particular, hosts promising REE mineralisation warranting further detailed exploration.

Strategic Implications and Next Steps

The company’s principal geologist highlighted that the initial wide spacing of drill holes was designed to identify broad zones of interest, with plans underway for more closely spaced infill drilling to better define mineralisation continuity and grade distribution. This approach is standard in early-stage exploration and critical for advancing towards resource estimation.

Kaili Resources’ assay results contribute to the growing recognition of the Limestone Coast region as a prospective area for rare earth elements, a critical group of minerals underpinning modern technologies and clean energy solutions. The company’s next phase will focus on refining targets within the three tenements and assessing the economic potential of the deposits.

While these results are encouraging, it is important to note that the data represent early exploration findings. True widths and resource classifications remain to be established through further drilling and technical studies. Nonetheless, Kaili’s progress aligns with broader market interest in securing domestic rare earth supplies amid global supply chain uncertainties.

Bottom Line?

Kaili Resources’ latest assays mark a promising step in unlocking rare earth potential in South Australia, with upcoming drilling campaigns set to clarify the project’s commercial prospects.

Questions in the middle?

• How will Kaili Resources prioritise drilling within the three tenements based on these results?
• What are the timelines and funding plans for advancing from exploration to resource definition?
• How might regional infrastructure and market demand influence the project’s development trajectory?