Kaili Resources Unveils Strong Rare Earths Assay Results at Mallee Project
Kaili Resources has reported promising laboratory assay results from its recent aircore drilling program targeting rare earth elements in South Australia’s Mallee Project. The findings highlight significant Total Rare Earth Oxide concentrations, particularly within the Coodalya tenement, supporting plans for expanded drilling.
- 52 aircore holes completed for 432 metres across Lameroo, Coodalya, and Karte tenements
- Highest Total Rare Earth Oxide (TREO) assay of 812.5 ppm recorded
- Drilling targeted Loxton/Parilla Sands stratigraphy known for ionic clay-style REE deposits
- Encouraging results in Coodalya tenement prompting plans for up to 6,000 metres of further drilling
- Comprehensive JORC-compliant sampling and assay protocols with ALS Laboratory analyses
Exploration Progress at Mallee Project
Kaili Resources Limited has released laboratory assay results from its February 2026 aircore drilling campaign at the Mallee Project in South Australia, covering the Lameroo, Coodalya, and Karte tenements. The program, which completed 52 holes totalling 432 metres, focused on road verge drilling to minimise disruption while covering a broad area of the Loxton/Parilla Sands stratigraphy within the Murray Basin.
The assays, conducted by ALS Laboratory using the ME MS 81 method, targeted the full suite of rare earth elements (REEs), reporting Total Rare Earth Oxide (TREO) values up to 812.5 ppm. Notably, the Coodalya tenement delivered some of the most encouraging results, with multiple intervals exceeding 400 ppm TREO, underscoring the potential for significant ionic clay-style REE mineralisation.
Geological Context and Regional Significance
The Mallee Project’s tenements lie approximately 200 kilometres east of Adelaide and overlay the Loxton/Parilla Sands, a geological formation known to host REEs within fine clay fractions of Tertiary strandlines. This style of deposit is gaining attention in Australia, with nearby Australian Rare Earths reporting a JORC resource of 236 million tonnes at 748 ppm TREO, currently advancing a pre-feasibility study.
Kaili’s drilling results align with this regional context, confirming the presence of REEs in the Murray Basin sediments. The company’s Principal Geologist highlighted that these results justify further drilling, including more detailed grid-based programs on freehold land, supported by pre-approval from the Department of Energy and Minerals for up to 6,000 metres of exploration drilling.
Rigorous Sampling and Quality Assurance
The exploration program employed industry-standard sampling techniques, with 3 kg meter samples collected and initially screened using handheld XRF instruments before laboratory assays. Quality control measures included insertion of standards, blanks, and duplicates, ensuring data integrity. The drilling was conducted by GPS Drilling along district council verges, with all holes dry and recoveries visually assessed as very good.
Comprehensive JORC-compliant reporting accompanies the results, providing transparency on sampling, assay methods, and data verification. This level of detail supports confidence in the early-stage exploration findings and sets a solid foundation for subsequent resource evaluation.
Outlook and Next Steps
With these promising assay results, Kaili Resources is poised to expand its exploration footprint at the Mallee Project. The company plans infill and extension drilling along road verges, followed by more closely spaced drilling on adjacent freehold land parcels. This phased approach aims to delineate mineralisation continuity and potentially define a resource in this emerging rare earth province.
As global demand for rare earth elements intensifies, particularly for clean energy technologies and advanced electronics, Kaili’s progress in South Australia contributes to Australia’s strategic supply ambitions. Investors and industry watchers will be keen to monitor upcoming drilling campaigns and any resource updates that may follow.
Bottom Line?
Kaili Resources’ latest assays mark a significant step forward, but the journey to a defined rare earth resource is just beginning.
Questions in the middle?
- How will Kaili Resources prioritise drilling targets within the expansive Mallee Project area?
- What are the potential metallurgical challenges associated with extracting REEs from the ionic clay deposits?
- How might regional infrastructure and market conditions impact the project’s development timeline?
