Aldoro Resources has increased its Kameelburg Mineral Resource by 35% to 804.5 million tonnes, including a maiden 162.1Mt Indicated category. The Namibia project is now moving towards development studies, backed by A$4.3 million in convertible notes but still carrying substantial geological and funding risks.
- Kameelburg resource rises 35% to 804.5Mt at 2.90% TREO equivalent
- Maiden 162.1Mt Indicated Resource alongside 642.4Mt Inferred
- 802.1Mt strontium resource reported as inclusive of the rare earth resource
- A$4.3 million raised through unsecured convertible notes at 8% interest
- A$2.411 million cash balance supports an estimated 2.76 quarters of funding
Kameelburg Resource Expands Into Development Scale
Aldoro Resources Ltd (ASX:ARN) has added 35% more tonnes to its flagship Kameelburg resource in Namibia, taking the reported Mineral Resource to 804.5 million tonnes at 2.90% TREO equivalent. The update also delivers the project’s first Indicated category, with 162.1Mt now classified as Indicated and 642.4Mt remaining Inferred.
The resource is reported on a 100% project basis, while Aldoro owns 85% of Kameelburg. The estimate incorporates 39 diamond holes and 16,904 metres of Phase 1 and Phase 2 drilling, building on the August resource upgrade that had reported the same 804.5Mt project scale and positioned the deposit among large western-world rare earth projects.
The numbers are large, but their classification matters more than the headline tonnage. Around 80% of the resource is Inferred, a category carrying low geological confidence under the company’s own JORC cautions. The estimate is not an Ore Reserve, no ore loss or dilution has been applied, and the filing says economic viability has not yet been demonstrated.
Three Commodity Streams Move Into Testwork
Kameelburg is being advanced as a multi-commodity system rather than a standalone rare earths deposit. The project contains an 802.1Mt strontium resource at 2.11% strontium, reported as inclusive of and not additional to the TREO resource. Aldoro describes it as the world’s largest reported strontium resource, while initial testing achieved 98.96% strontium extraction after 120 minutes at ambient temperature.
Rare earth recovery has reached about 72% through direct hydrochloric acid leaching without conventional beneficiation, while niobium recovery has reached 62.4% in earlier testwork. A new hydrometallurgical programme at CM Solutions in Johannesburg is intended to refine leach conditions, improve recoveries, test impurity removal and strontium carbonate precipitation, and help define a lower-capital flowsheet. Results are expected in the fourth quarter of 2026.
Convertible Notes Fund the Next Test
Aldoro raised A$4.3 million through unsecured convertible notes during the quarter, under terms carrying 8% annual interest over 12 months. Holders may elect to convert principal and accrued interest into shares at a price based on the preceding 20-trading-day VWAP, subject to a floor of A$0.365 and a ceiling of A$1.00. The financing follows the July convertible note raise, which had outlined funding for Kameelburg studies, metallurgy, drilling and permitting.
The cash position improved to A$2.411 million at quarter end after A$4.3 million of convertible debt proceeds, A$209,000 from option exercises and a A$1.3 million repayment of borrowings. Operating and exploration outflows totalled A$872,000 for the quarter, leaving the Appendix 5B estimate at 2.76 quarters of available funding. The notes provide additional gross funding, but they also create potential future dilution if converted and carry an 8% interest cost.
Aldoro’s next operational milestones are the Kameelburg Scoping Study, upgraded metallurgy, Phase III drilling and the possible conversion of Inferred material into Indicated resources. The company is also progressing a proposed Hong Kong Stock Exchange listing, although it remains subject to approvals, due diligence, market conditions and board discretion. Separately, Pioneer terminated its underwriting obligations for Aldoro’s options after the share price fell below the agreement’s A$0.25 threshold.
Bottom Line?
Kameelburg now has the scale and initial metallurgy to support development studies, but the investment case still turns on resource conversion, a credible flowsheet and the next funding decision.
Questions in the middle?
- How much of the 642.4Mt Inferred Resource can Phase III drilling convert into the Indicated category?
- Will CM Solutions’ upgraded testwork improve recoveries enough to support a lower-capital Scoping Study flowsheet?
- Can Aldoro fund the project beyond the estimated 2.76-quarter cash runway without relying on further dilution or an uncompleted HKEX listing?