Killi Resources Accelerates Lodestone Iron Ore Expansion with 20,000m Drilling Program

Major Drilling Campaign Targets Resource Growth

Killi Resources Limited (ASX:KLI) is moving swiftly to expand its foothold in Western Australia's iron ore sector with a significant exploration campaign at the Lodestone Iron Ore Project. The company plans to kick off a 20,000-metre drilling program by the end of July, aiming to extend and upgrade its existing 110 million tonne (Mt) JORC Inferred Mineral Resource. This program, combining reverse circulation and diamond core drilling, will focus on a 5-kilometre section of the 25-kilometre mineralised corridor, with the goal of delivering multiple resource updates in the coming quarters.

Expanding Beyond the Known Mineralisation

Alongside drilling, Killi's geological team has commenced comprehensive surface mapping and sampling to identify parallel mineralised zones that could add significant scale to the project. The company has also engaged geophysical contractors to conduct a detailed drone-based magnetic survey across the entire recrystallised magnetite system, covering the full 25-kilometre strike length. This survey aims to delineate covered banded iron formation (BIF) extensions and generate new drill targets, potentially expanding the resource well beyond the current footprint.

Premium Product Potential in a Strategic Location

Lodestone's magnetite ore is notable for its recrystallised, coarse-grained nature, enabling production of a high-purity direct-reduction (DR) grade concentrate with iron content between 68 and 70 percent. This quality positions the project to tap into the growing electric arc furnace steelmaking market, where such premium concentrates command substantial price premiums over the benchmark 62% Fe index. The project benefits from its strategic location approximately 200 kilometres from the Port of Geraldton, with access to sealed roads, rail, and grid power, factors that could help keep capital and operating costs competitive.

Financial Strength and Experienced Leadership

Killi's strong cash position of around $18.5 million, bolstered by a recent $15 million placement, provides the financial runway to aggressively pursue exploration and development activities. Chairman Nev Power highlighted the company's focus on leveraging Lodestone's unique ore characteristics and infrastructure advantages to unlock shareholder value. He emphasised the potential for the project to produce a premium product that will be in high demand among steel producers, underpinning a pathway to development.

Next Steps and Market Implications

The upcoming drilling campaign will not only target resource expansion but also provide critical metallurgical samples for advanced testwork. These efforts aim to produce concentrate and pellet samples for evaluation by potential customers, a crucial step toward securing offtake agreements. As Killi advances its exploration program, the market will be watching closely for assay results and resource upgrades that could reshape the project's valuation and development timeline.