Highlights

  • Killi completed the acquisition of an 80% interest in the Lodestone Iron Ore Project in Western Australia.
  • A 20,000m drilling program began in August to grow the 110Mt Inferred Mineral Resource.
  • Step-out diamond holes south of the resource intersected thick zones of coarse, crystalline magnetite.
  • Cash stood at A$16.4 million at 30 September 2026.

Killi Resources Limited (ASX:KLI) has released its quarterly activities report for the period ended 30 September 2026. The quarter was defined by the completion of the Lodestone Iron Ore Project acquisition and the start of a maiden drilling program aimed at expanding its magnetite resource.

Lodestone Acquisition and Resource

Killi acquired an 80% interest in the Lodestone Iron Ore Project in Western Australia's Midwest Iron Ore District. The project lies about 200km from the Port of Geraldton, between the Karara and Koolanooka iron ore mines, and is adjacent to grid power, road and rail.

Lodestone hosts an Inferred Mineral Resource of 110Mt at 33% mass recovery, producing a concentrate grading 69% iron. The resource covers about 5km of strike within a mineralised trend of more than 25km. Killi aims to produce a high-purity magnetite concentrate suitable for direct reduction and electric arc furnace steelmaking.

Maiden Drilling Results

A 20,000m drilling program began in August 2026 to grow and upgrade the resource. The first diamond phase comprised nine holes for 1,332.9m. Hole KKDD001, about 100m south of the resource, intersected a magnetite zone of about 80m, while KKDD004, about 600m south of the resource boundary, intersected a main zone of about 50m, showing strike continuity.

Killi noted that "visual estimates of mineral abundance are preliminary geological observations only," and laboratory and metallurgical testwork are required to confirm grade and recovery. A second rig began RC drilling in October, and a drone magnetic survey covering the full 25km trend was completed, with results pending.

Other Projects and Corporate Update

At the Mt Rawdon West project in Queensland, work is focused on securing drill access and completing environmental surveys, and drilling may be delayed until after the summer fire season. At the West Tanami Gold Project, where Gold Fields can earn up to 85%, infill soil results are expected before the end of the year.

Cash stood at A$16.4 million at 30 September 2026, following completion of a A$15 million placement. Hamish Halliday was appointed Managing Director, and the company estimates about nine quarters of funding at its current spending rate.

Key Takeaways

  • Killi has transformed its portfolio with the Lodestone magnetite project.
  • Early step-out drilling suggests the magnetite system extends south of the current resource.
  • Laboratory and metallurgical work will be key to confirming grades and recoveries.
  • A$16.4 million in cash supports the two-rig drilling program.