Ore Resources’ July diamond drilling at Kangaroo Hills confirms thick, near-surface lithium mineralisation and advances development studies, setting the stage for a Direct Shipping Ore assessment.
- Seven diamond holes total 640m with strong lithium intercepts
- Notable 27m at 1.33% Li2O from 4m, including 5m at 2.01%
- Core samples collected for ore sorting and metallurgical testing
- Initial Mineral Resource Estimate and DSO study imminent
- Low intrinsic iron content confirmed, supporting product quality
Diamond Drilling Delivers Strong Lithium Intercepts
Ore Resources Ltd (ASX:OR3) has bolstered the lithium credentials of its Kangaroo Hills project with the results of a July 2026 diamond drilling campaign. Seven holes totaling 640 metres targeted the Big Red pegmatite system, returning consistent, shallow, high-grade lithium mineralisation. The standout intercept came from hole KHDD018, which intersected 27 metres at 1.33% Li2O from just 4 metres downhole, including an impressive 5 metres at 2.01% Li2O from 11 metres. This result notably exceeded expectations and doubled the thickness compared to adjacent 2023 drill holes.
The other four targeted holes also delivered significant intervals, such as 25 metres at 1.33% Li2O from 59 metres (KHDD013) and 22 metres at 1.43% Li2O from 54 metres (KHDD015), with a high-grade core of 11 metres at 1.70% Li2O. These intercepts confirm the continuity and thickness of the Big Red pegmatite, reinforcing its potential as a near-surface lithium resource.
Samples Support Metallurgical and Ore Sorting Studies
The diamond drilling was designed not only to confirm mineralisation but also to provide bulk core samples for detailed metallurgical and geotechnical studies. Ore Resources collected representative HQ and PQ core samples to underpin ore sorting assessments, which aim to optimise product quality and project economics. These studies are critical for advancing the potential of a Direct Shipping Ore (DSO) operation at Kangaroo Hills, a capital-lite development pathway that the company is actively evaluating.
Complementing these efforts, the company has confirmed a low intrinsic iron content in the Big Red mineralisation through duplicate assay testing with steel and tungsten crucibles. This is a key quality indicator, as iron impurities can hamper downstream lithium concentrate processing. The low iron levels detected provide further confidence in the deposit’s suitability for efficient processing and high-quality product output.
Advancing Near-Term Development with Resource Estimate and DSO Study
Ore Resources is progressing a technical study focused on the economics and feasibility of a near-term DSO operation at Kangaroo Hills. This study will be supported by the imminent declaration of an initial Mineral Resource Estimate (MRE), which will form the foundation for assessing the project’s development potential. The company expects to complete both the MRE and the DSO study within weeks, milestones that will be pivotal in shaping its next phase.
Meanwhile, regional exploration continues across the broader Coolgardie Lithium Projects, with a 3,000-metre reverse circulation drilling program underway targeting Kangaroo Hills and the Miriam Lithium Project. Results from this campaign are anticipated in September 2026, potentially adding further resource growth and discovery upside.
Financial Position Supports Aggressive Exploration
Ore Resources maintains a robust balance sheet with A$6.8 million in cash and zero debt as of 30 June 2026, positioning the company well to fund its extensive exploration and development programs. This financial strength underpins its ability to advance both lithium and gold projects in the Eastern Goldfields region, a prolific mining hub with strong infrastructure and skilled labour access.
Bottom Line?
Ore Resources’ latest drilling and quality assessments at Kangaroo Hills set the stage for a critical resource update and a potentially capital-efficient lithium operation.
Questions in the middle?
- How will the upcoming Mineral Resource Estimate quantify the size and grade continuity of Kangaroo Hills?
- What impact will ore sorting and metallurgical testwork have on refining project economics?
- Could September’s RC drilling results unlock further resource expansions across Coolgardie?