Aldoro Resources has solidified its position in critical minerals with a major resource update at Kameelburg, revealing the world’s largest Strontium deposit alongside high-grade rare earth and niobium mineralisation, backed by robust Phase II drilling and metallurgical advances.
- Kameelburg hosts 597Mt inferred resource at 2.49% TREO equivalent
- Maiden Strontium resource of 596Mt at 2.17% Sr included
- Record 543m intercept at 1.38% TREO and 4.08% SrCO₃ in DD008F
- Hydrometallurgical tests show 72% REE and >99% Sr recovery via direct acid leach
- Secured $7.57 million funding through options underwriting and convertible notes
Kameelburg Establishes Global Critical Mineral Significance
Aldoro Resources (ASX:ARN) has unveiled a game-changing update for its flagship Kameelburg Rare Earth Element (REE)-Niobium-Strontium project in Namibia, confirming it as the world’s largest Strontium resource. The company’s latest Mineral Resource Estimate (MRE) reports an inferred 597 million tonnes grading 2.49% total rare earth oxides (TREO) equivalent, marking a 15% tonnage increase since September 2025 while maintaining grade. Crucially, Aldoro’s maiden Strontium resource stands at 596 million tonnes at 2.17% Sr, embedded within the TREO resource, positioning Kameelburg as a globally strategic asset outside dominant Chinese and Iranian supply chains.
This scale and grade underpin Aldoro’s emergence as a key player in critical minerals, with the project’s co-located multi-commodity profile, REE, Strontium, Niobium, and Molybdenum, offering diversified economic value. The company’s independent consultants, Lily Valley International, prepared the MRE in accordance with JORC Code (2012 edition).
Phase II Drilling Confirms Exceptional Continuity and Grade
The recently completed Phase II diamond drilling program, comprising 15 holes totaling 7,190 metres, has delivered a consistent message: Kameelburg hosts a vast, continuous mineralised system extending in all directions from the carbonatite’s central core. Notably, drill pad 8 has emerged as the standout zone, contributing an estimated 30% of the upcoming Phase II resource inventory with multiple holes intersecting thick, high-grade mineralisation.
Highlight intercepts include DD008F’s record-breaking 543 metres at 1.38% TREO, 4.08% SrCO₃, 0.20% Nb₂O₅, and 306 ppm Mo, arguably the most significant drill hole in the project’s history. This intercept combines substantial thickness with robust grades, with strontium’s value roughly equivalent to rare earths at current prices, enhancing the true economic intensity of the mineralisation.
Other notable holes like DD008D (504m at 1.3% TREO), DD008G (318m at 1.51% TREO), and DD005D (136m near-surface REE-rich intercept plus 211m niobium continuity at depth) reinforce the deposit’s scale and multi-layered architecture. The drilling has confirmed the zonation model where high-grade niobium concentrates at the carbonatite margins, while rare earths and strontium dominate the central sovite core.
Maiden Hydrometallurgical Testwork Validates Simplified Processing
Aldoro’s metallurgical testwork, conducted by ALS Metallurgy in Perth, has demonstrated a significant breakthrough: direct hydrochloric acid leaching at ambient temperature achieves 72% recovery of rare earths and over 99% recovery of strontium without requiring complex beneficiation or thermal pre-treatment. This contrasts favourably with many peer projects that rely on energy-intensive roasting or aggressive chemical cracking.
The mineralisation’s hosting in ancylite, a strontium-rare earth carbonate, facilitates this straightforward leaching route. Such processing advantages could translate into lower capital and operating costs, as well as environmental benefits, enhancing the project’s development appeal.
Corporate Moves Bolster Development Funding and Strategic Options
On the corporate front, Aldoro has secured a $3.27 million underwriting agreement for unlisted options exercisable at $0.25, ensuring full exercise proceeds. Shortly after quarter-end, the company raised $4.3 million through unsecured convertible notes carrying 8% interest, convertible into shares at a VWAP-based price with floors and caps. These funds are earmarked for advancing metallurgical drilling, feasibility studies, permitting, strategic land acquisitions, and general working capital.
Additionally, Aldoro is exploring a secondary listing on the Hong Kong Stock Exchange to broaden its investor base and improve access to international capital markets. While still in early stages, this move signals ambitions to position Kameelburg as a globally significant critical minerals project.
Cash Position and Operational Outlook
Despite ongoing exploration expenditure of $588,000 this quarter and a low cash balance of $74,000 at period-end, the company’s funding initiatives provide a runway to sustain operations and accelerate development. Director fees accounted for $72,000 in related party payments.
Exploration continues on the Niobe Rubidium-Lithium and Narndee projects in Western Australia, though no fieldwork occurred this quarter. The company also completed divestments of some non-core tenements, with titles held in trust pending transfer.
Bottom Line?
Aldoro’s Kameelburg project is shaping up as a globally significant critical minerals asset, but investors should watch for the imminent Phase II resource update and monitor dilution risks from convertible notes.
Questions in the middle?
- How will the upcoming Phase II Mineral Resource Estimate quantify the resource growth and grade continuity?
- What impact will the convertible notes’ conversion terms have on Aldoro’s share structure and valuation?
- How might the proposed HKEX secondary listing influence Aldoro’s capital access and investor profile?