Kaili Resources Launches Rare Earths Drilling at South Australia’s Mallee Project
Kaili Resources has initiated a targeted Aircore drilling campaign across its Mallee Project tenements in South Australia, aiming to unlock rare earth element potential within the Loxton/Parilla Sands. This early-stage program follows promising regional exploration and seeks to refine future drilling focus.
- Aircore drilling begins across Lameroo, Coodalya, and Karte tenements
- Focus on identifying rare earth elements in Loxton/Parilla Sands stratigraphy
- 30 vertical holes planned, each up to 20 metres deep, totalling 600 metres
- Program designed to minimise land disruption with council approvals
- Previous drilling indicated elevated Total Rare Earth Oxides in Coodalya
Exploration Kicks Off in South Australia
Kaili Resources Limited has commenced an initial Aircore drilling program targeting rare earth elements (REEs) within its Mallee Project, located approximately 200 kilometres east of Adelaide in South Australia. The drilling campaign covers three granted exploration licences – Lameroo (EL 6856), Coodalya (EL 6978), and Karte (EL 6977), all situated within the Murray Basin.
This program marks a significant step forward for Kaili, aiming to delineate REE mineralisation hosted within the Loxton/Parilla Sands, a Tertiary-aged sedimentary formation known for its ionic clay-style deposits. The company plans to drill 30 vertical holes, each averaging up to 20 metres in depth, totalling approximately 600 metres of drilling. The majority of the focus is on the Coodalya tenement, where previous drilling in 2025 revealed elevated concentrations of Total Rare Earth Oxides (TREO).
Strategic and Low-Impact Drilling Approach
Kaili’s approach emphasises minimal disruption to private landowners by situating drill holes along roadside verges, with local council approvals secured. This strategy allows for a widely spaced drilling pattern designed to cover a large area of the target stratigraphy efficiently and cost-effectively. The program is supported by detailed geological logging and pXRF scanning, with selected samples to be sent for comprehensive geochemical analysis.
Importantly, the Department of Energy and Minerals has granted approval for a much larger exploration drilling campaign of up to 300 holes and 6,000 metres, signalling regulatory confidence in the project’s potential. This initial phase will inform and refine the focus for subsequent, more intensive drilling efforts.
Regional Context and Industry Comparisons
The Mallee Project’s location within the Murray Basin places it in a region of growing interest for rare earth exploration. Nearby, Australian Rare Earths (ASX – AR3) has reported a substantial JORC 2012 resource of 236 million tonnes at 748 ppm TREO, currently advancing a pre-feasibility study supported by a $5 million Australian Government co-funding grant. Kaili’s exploration efforts could potentially tap into similar mineralisation styles, leveraging the geological setting and prior regional data.
While no assay results from the current drilling are yet available, Kaili’s methodical and low-cost exploration program, combined with prior positive indications, positions the company well to advance its understanding of the REE potential in the area. The involvement of experienced geological consultants and adherence to industry-standard sampling and logging protocols further underpin the program’s credibility.
Looking Ahead
As the drilling progresses, investors and analysts will be keenly awaiting assay results and detailed geological interpretations to assess the economic viability of the mineralisation. The company’s ability to expand drilling and attract further funding will likely hinge on these forthcoming data points. Meanwhile, the broader rare earth sector continues to attract attention given the strategic importance of these elements in technology and clean energy applications.
Bottom Line?
Kaili’s initial drilling sets the stage for a potentially transformative rare earth discovery in South Australia, with results soon to shape the project’s trajectory.
Questions in the middle?
- What do the upcoming assay results reveal about the grade and distribution of rare earth elements?
- How will Kaili prioritise and fund the larger-scale drilling program approved by regulators?
- Can Kaili’s Mallee Project compete with or complement nearby established rare earth resources?
