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Kaili’s Coodalya Drilling Finds 1,125 ppm TREO Peak

Mining By Maxwell Dee 3 min read

Kaili Resources has reported a peak one-metre assay of 1,125.51 ppm total rare earth oxides from shallow aircore drilling at its Coodalya tenement in South Australia. The result adds to an emerging zone of elevated values, but the early-stage program has not yet established continuity, scale or economic significance.

  • Peak assay of 1,125.51 ppm TREO at 15-16 metres
  • 261 metres drilled across 16 vertical aircore holes
  • Additional highlighted results of 350.23, 428.84 and 361.91 ppm TREO
  • Follow-up infill and extension drilling under consideration
  • No mineral resource or economic assessment established

Peak TREO Result Extends Coodalya Anomaly

Kaili Resources Limited (ASX:KLR) has produced a 1,125.51 ppm total rare earth oxide result from a one-metre interval at its Coodalya tenement in South Australia, giving the small explorer a stronger laboratory-confirmed result from its focused Mallee Project campaign.

The standout interval came from hole 26CDAC023 between 15 and 16 metres. The same hole returned a further 350.23 ppm TREO from 16-17 metres, while hole 26CDAC025 recorded 428.84 ppm from 15-16 metres and hole 26CDAC030 returned 361.91 ppm from 6-7 metres. Kaili said five samples exceeded 300 ppm TREO, although four intervals are individually identified in the announcement.

Shallow Aircore Program Tests Loxton-Parilla Sands

The results came from 16 vertical aircore holes drilled for a combined 261 metres in July 2026, with holes reaching depths of up to 18 metres. The work concentrated on the north-eastern part of exploration licence EL 6978 and followed earlier drilling intended to test the Coodalya area.

Kaili is targeting ionic-clay-style rare earth mineralisation hosted in the fine clay fraction of the Murray Basin's Tertiary-aged Loxton and Parilla Sands. Samples were scanned with a handheld pXRF before selected material underwent full rare earth analysis at ALS using method ME-MS81, based on lithium borate fusion and ICP-MS analysis.

Further Drilling Depends on Continuity

The company said the latest results add to an area of elevated TREO west of Alburdin and may support further drilling along road verges and, subject to access, within adjacent private land. The stated next step is infill and extension drilling before any more closely spaced work is considered.

That distinction matters. These are selected one-metre assays from an early exploration program, not a mineral resource estimate. The announcement does not establish the lateral continuity of the mineralisation, its true thickness, metallurgical characteristics or whether the grades could support an economic development. The drilling was also confined largely to accessible road-verge locations.

Date Discrepancy Adds a Small Filing Detail

The announcement's opening heading refers to 15 September 2027, while the body and the JORC appendix identify the assay results as received on 15 September 2026. That apparent date mismatch does not alter the reported assays, but it is a detail investors may expect Kaili to clarify as the exploration story moves towards its next set of results.

Bottom Line?

The 1,125.51 ppm result sharpens the Coodalya target, but the next drilling must show whether the high values form a continuous and meaningful zone rather than isolated shallow peaks.

Questions in the middle?

  • Will follow-up drilling confirm lateral and vertical continuity around the strongest Coodalya intervals?
  • How will the TREO grades vary across the unreported or less elevated parts of the drilling area?
  • Can Kaili secure access for more closely spaced drilling on adjacent private land?