Killi Resources (ASX:KLI) has received drilling approvals for a maiden exploration program at its recently acquired Lodestone Iron Ore Project in Western Australia’s Mid West.
Located 200km from the Port of Geraldton, the project currently hosts a 110-million-tonne inferred resource at 33% Davis Tube recovery (DTR) mass recovery, grading 69% iron in concentrate.
Killi says Lodestone features unique ore characteristics, including a distinctive coarse-grade mineralisation capable of producing a ‘high-grade’, ‘high–value’ concentrate.
The initial campaign involves infill and extensional drilling, targeting 155 reverse circulation (RC) holes and 35 diamond core holes and testing approximately 15km of the Lodestone magnetite system’s 25km strike.
According to Killi, the program aims to grow the resource base and upgrade the category of existing resources and provide metallurgical samples and geological data for future processing and engineering studies, among others.
Chairman Nev Power says growing the Lodestone resource provides an “outstanding opportunity to create rapid growth for shareholders”.
“We know the magnetite mineralisation continues for another 20km, which gives us a lot of low-hanging fruit for the upcoming drilling,” Power says.
“At the same time, we will progress metallurgical tests and other work to maximise the speed at which we can unlock the value of the project.”
The company is currently securing contracts for 20,000m to 40,000m of RC drilling and 1,000m to 2,000m of diamond drilling.
It has also announced a two-tranche $15 million share placement, with $10.8 million raised under both tranches, subject to shareholder approval.
Killi Resources is a mineral explorer focused on the discovery of gold, copper, rare earths, and iron ore across Western Australia and Queensland.
Write to Paula Fabe at Mining.com.au
Images: Killi Resources
