Iltani’s Orient resource sets up its next critical phase

Orient resource gives Iltani a larger base for development

Iltani Resources Limited (ASX:ILT) has used FY26 to turn the Orient Silver-Indium Project from an exploration story into a more defined development proposition, reporting a combined Mineral Resource Estimate of 62.5 million tonnes at 81.5 grams per tonne silver equivalent. The resource contains approximately 45.9 million ounces of silver, 725 tonnes of indium, 341,000 tonnes of lead and 421,000 tonnes of zinc.

The estimate combines 42.7Mt at 73.8 g/t Ag Eq. at Orient West with 19.8Mt at 98.0 g/t Ag Eq. at Orient East, using a 30 g/t Ag Eq. cut-off. Indicated resources account for 38.8Mt of the total, while 23.7Mt remains in the Inferred category. Iltani describes Orient as Australia’s largest known silver-indium deposit, although that characterisation is the company’s own assessment rather than an independently stated industry ranking.

QIC funding extends the exploration runway

The project’s resource growth was matched by a significant funding package. The Queensland Investment Corporation’s Critical Minerals and Battery Technology Fund provided $6 million of upfront funding tied to a royalty on future Herberton Project product sales, alongside a $2 million equity investment at 37 cents a share.

The royalty is set at 2% of gross revenue from future production if commercial production begins by 31 December 2030, rising to 2.5% if production starts later. Iltani had $7.52 million in cash at 30 June 2026, but also carried $3.82 million of deferred grant income linked to the QIC arrangement. The company said that balance is expected to be spent on the Herberton Project and released against future exploration expenditure.

Drilling moves from discovery towards resource definition

Iltani completed 88 reverse-circulation holes covering 17,056 metres and two diamond holes covering 278 metres during the year. Two rigs returned to the field in April 2026 for an approximately 110-hole program aimed at converting Inferred resources to Indicated, extending known mineralisation and testing new targets; 67 RC holes covering 12,761 metres were completed in the June quarter alone.

The company says mineralisation remains open at depth and along strike across Orient, with the Link Zone, Orient North, Vein 1 and the Orient West north-eastern extension identified for follow-up work. It has also completed a VTEM survey across the broader Herberton area and begun testing regional targets that could potentially provide satellite resources for a future Orient processing operation. Those possibilities remain exploration concepts, not established mine plans.

Losses continue while exploration spending rises

Financially, Iltani remains an explorer without operating revenue. It reported a $1.22 million loss for FY26, compared with a $1.19 million loss in FY25, while operating cash use rose modestly to $283,932. Exploration and evaluation assets increased to $8.38 million after $4.62 million of expenditure, partly offset by $2.18 million of QIC funding applied against capitalised exploration costs.

The balance sheet is stronger than a year earlier, with net assets rising to $10.44 million from $8.53 million. That improvement reflects the QIC equity investment and option exercises as well as capitalised exploration activity, rather than operating earnings. The annual report also identifies the familiar risks for an explorer: continued funding requirements, tenement conditions, seasonal access constraints and no assurance that exploration will result in an economic deposit.

Resource update and scoping study set the next tests

Iltani is targeting completion of the current drilling program and an updated Orient resource estimate in the December 2026 quarter, followed by a scoping study in early 2027. It has also lodged applications for additional Queensland exploration permits, including Silver Dollar, Sand Creek and Cherry Creek, where it was named priority applicant.

The key question now is whether the next resource can convert more of Orient’s Inferred material while preserving the grades and scale already reported, and whether the subsequent scoping study can translate that geological inventory into a credible development case. Until then, the project’s value remains tied to drilling outcomes, metallurgical work, permitting and the company’s ability to fund the path from resource to study.