Killi Resources has kicked off a major drilling campaign at its Lodestone Iron Ore Project, aiming to grow and upgrade its 110Mt resource of high-purity magnetite expected to command a price premium.
- 20,000m drilling program underway at Lodestone
- Targets expansion beyond 110Mt JORC Inferred Resource
- High-purity iron ore suited for electric arc furnaces
- Multiple resource updates and assay results expected
- Strategic location near Geraldton port and infrastructure
Drilling Commences to Unlock Premium Iron Ore Potential
Killi Resources (ASX:KLI) has started a substantial 20,000-metre reverse circulation and diamond drilling program at its recently acquired Lodestone Iron Ore Project in Western Australia's Mid-West. The campaign aims to expand and upgrade the existing 110 million tonne JORC Inferred Mineral Resource.
The project’s standout feature is its high-purity, direct reduction-grade magnetite concentrate, boasting a 69% Fe content with low impurities. This recrystallised, coarse-grained ore is rare and expected to attract a significant price premium over the benchmark 62% iron ore index, making it highly sought after by the next generation of electric arc steel furnaces.
Extending Mineralisation Along a 25km Corridor
The current 110Mt resource is confined to a 5km stretch of the Lodestone system, but geological data indicates mineralisation continues along a further 20km corridor. The drilling program is designed to infill and extend coverage across approximately 15km of this corridor, potentially delivering a material increase in resource size and confidence category.
Killi Chairman Nev Power emphasised the value proposition: "By simply increasing the size of the resource, we stand to create substantial value for Killi shareholders. The existing resource sits within a 5km stretch, but the host geology continues for another 20km with extensive mineralisation. The goal is to start bringing this into the resource."
Supporting Metallurgical Testwork and Economic Studies
Alongside drilling, the company is conducting geological mapping, surface sampling, and a drone-based magnetic survey to identify additional mineralised zones. Metallurgical samples collected during drilling will support testwork aimed at confirming the high purity and direct reduction grade of the concentrate.
The program is expected to provide sufficient data to underpin future economic studies, with multiple resource updates anticipated as assay results come in over the coming quarters.
Strategic Location and Infrastructure Advantages
Lodestone benefits from its proximity to the Port of Geraldton, approximately 200km away, and is surrounded by quality infrastructure including sealed roads, rail, and grid power. This positioning enhances the project's logistics and potential development economics.
Killi’s broader portfolio includes gold and copper projects in Western Australia and Queensland, but Lodestone’s premium iron ore resource is positioned to be a flagship asset.
Bottom Line?
The drilling campaign at Lodestone could reshape Killi’s resource profile and market positioning, but investors will be watching closely as assay results and resource upgrades roll in.
Questions in the middle?
- Will drilling confirm extensive mineralisation beyond the current 5km resource footprint?
- How will metallurgical testwork validate the expected premium quality of the concentrate?
- What timeline will Killi adopt for advancing economic studies and potential development decisions?