Ore Resources (ASX: OR3) has kicked off a 3,000m reverse circulation drilling campaign at its Coolgardie Lithium Projects, targeting strike extensions and infill at the Big Red and Potoroo pegmatites. The program follows strong historical lithium intercepts and promising metallurgical testwork, with results due in June 2026.
- 3,000m RC drilling commenced at Kangaroo Hills
- Targets extensions of Big Red and Potoroo pegmatites
- Historical intercepts up to 31m @ 1.36% Li2O
- Preliminary metallurgical tests show favourable processing
- Project Agreement signed with Marlinyu Ghoorlie traditional owners
New Drilling Targets Open Up Lithium Potential
Ore Resources has resumed exploration at its Coolgardie Lithium Projects with a focused 3,000-metre reverse circulation (RC) drilling campaign at Kangaroo Hills, aiming to extend the known spodumene-bearing pegmatite systems at Big Red and Potoroo. These targets, collectively spanning over 1.15 kilometres of strike, remain open in multiple directions and at shallow depths, with previous drilling limited to around 100 metres vertical. The program is designed both to test strike extensions and provide infill data to underpin project advancement amid improving lithium market conditions.
Big Red, the flagship discovery, has been delineated over approximately 900 metres of strike and is characterised by thick, laterally continuous mineralisation with lithium grades consistently above 1% Li2O. Key intercepts from recent campaigns include standout hits such as 29m at 1.36% Li2O and 31m at 1.13% Li2O, highlighting the deposit's potential scale. The adjacent Potoroo pegmatite, discovered during the 2024 drilling phase, extends over 250 metres and remains a priority for follow-up given its complementary position to Big Red.
Drilling at Kangaroo Hills runs in parallel with Ore’s primary gold exploration at the Coolgardie Gold Projects, where the company is advancing an expansive Phase 4 program. This dual focus reflects Ore’s disciplined capital allocation strategy, balancing lithium opportunities with its established gold portfolio. Notably, Ore Resources holds a robust balance sheet with A$9.6 million cash and zero debt as of March 2026, providing ample runway to progress multiple projects simultaneously.
Metallurgical Testwork Supports Processing Pathways
Preliminary metallurgical studies on Big Red pegmatite samples have yielded encouraging results, confirming spodumene as the dominant lithium mineral (~90% of Li2O content). Initial testwork suggests the mineralisation is amenable to conventional processing techniques, including Dense Media Separation (DMS) and froth flotation, capable of producing high-grade, low-impurity spodumene concentrate. Early-stage results reported a spodumene concentrate grading 5.56% Li2O with a 52.9% stage recovery via DMS, and 5.50% Li2O with 76.9% global recovery through froth flotation. While these figures are preliminary and require further optimisation, they provide a solid foundation for future development pathways.
The metallurgical findings complement the geological data and reinforce the potential for scalable, low-cost lithium production from Kangaroo Hills. This aligns with Ore’s strategic positioning to benefit from the current upswing in spodumene prices, which have surged to around US$2,700 per tonne CIF amid tightening global supply and robust demand from electric vehicle and battery storage sectors.
Strategic Native Title Agreement Eases Development Pathways
In a significant regulatory milestone, Ore Resources executed a Project Agreement in February 2026 with the Marlinyu Ghoorlie People, the traditional owners of the Coolgardie land. This agreement establishes a collaborative framework for exploration and future development, facilitating the path toward mining licence grants, including for Kangaroo Hills. Such arrangements are critical in Western Australia’s mining landscape, reducing project risk and supporting community engagement.
Ore’s tenure at Coolgardie includes granted prospecting licences and a pending mining licence application at Kangaroo Hills, underpinned by approved Programs of Work. The region benefits from established infrastructure and proximity to major lithium operations such as Mineral Resources’ Mt Marion mine, located approximately 30 kilometres east. This infrastructure advantage enhances Ore’s commercialisation options, whether through standalone development or integration with existing processing facilities.
The current drilling campaign’s results, expected in June 2026, will be pivotal in refining resource estimates and informing near-term development strategies. These outcomes will be watched closely alongside Ore’s ongoing gold exploration efforts, including the recently reported Phase 4 drilling at Forrest gold system and new gold targets at Miriam, underscoring the company’s balanced commodity exposure in the Eastern Goldfields.
Bottom Line?
June assay results will be a key inflection point for Ore Resources’ lithium ambitions amid a tightening global market.
Questions in the middle?
- Will the June drilling results confirm significant resource expansion at Kangaroo Hills?
- How will Ore Resources balance capital allocation between lithium and gold as both markets evolve?
- What impact will the Marlinyu Ghoorlie agreement have on the timing of mining licence approvals?