Highlights

  • Killi completed a drone magnetic survey along a 25-kilometre Lodestone trend in Western Australia.
  • The programme comprised 518 survey lines and approximately 1,844 line-kilometres in total.
  • Its existing Inferred Mineral Resource is 110 million tonnes, with no new estimate announced.
  • The current resource covers approximately five kilometres of the wider trend.
  • Survey interpretation, drilling assays and metallurgical assessment remain outstanding.

Killi Resources Limited (ASX:KLI) is advancing the Lodestone magnetite project in Western Australia’s Mid-West region. In its 4 November 2026 announcement, the company described preliminary findings from a drone magnetic survey covering a 25-kilometre trend. The work has identified multiple parallel magnetic features that could inform future drilling, although magnetic responses alone do not establish mineral grades or additional resources.

The high-resolution programme used 518 east–west lines at 50-metre spacing, together with three north–south tie lines. It comprised approximately 1,844 line-kilometres in total. Killi Resources Limited (ASX:KLI) said the magnetic information would help rank areas for follow-up work. Processing and detailed interpretation were still in progress at the announcement date.

What the Magnetic Survey Establishes

The company reported multiple parallel magnetic zones along the surveyed trend. These features may help geologists investigate the distribution and continuity of magnetite-bearing rocks beyond the currently estimated resource area. However, the announcement did not provide new drill-tested grades or a revised mineral resource attributable to the survey.

Killi Resources Limited (ASX:KLI) also noted that near-surface oxidation can affect magnetic responses. Consequently, the survey is a targeting tool rather than a direct measurement of recoverable iron content. Additional drilling, geological modelling and laboratory results will be needed to assess whether the identified features represent extensions of the known deposit.

The Existing Lodestone Resource

Lodestone has an Inferred Mineral Resource of 110 million tonnes at 33% Davis Tube Recovery mass recovery, producing a concentrate grading 69% iron, as reported in June 2026. This is a metallurgical recovery and concentrate-grade description, not a claim that the entire rock mass grades 69% iron. The estimate spans roughly five kilometres of the 25-kilometre trend and was unchanged by the November announcement.

An Inferred Mineral Resource carries geological uncertainty and cannot be treated as an Ore Reserve. Killi Resources Limited (ASX:KLI) holds an 80% interest in the Lodestone project. The company describes magnetite-rich banded iron formations within the project area, but any expansion of the resource footprint will require supporting drilling and technical assessment.

Drilling Programme and Technical Work

The company is undertaking a broader 20,000-metre drilling programme involving reverse circulation and diamond drilling. It reported completion of nine diamond holes totalling 1,332.9 metres, with assays and Davis Tube test results pending. These completed holes provide geological samples, but their final analytical results were not available in the 4 November update.

Killi Resources Limited (ASX:KLI) is also evaluating the potential to produce a high-iron magnetite concentrate, with further metallurgical and pelletisation tests planned or under way. Product quality, processing performance and commercial viability remain subject to testing. A future resource revision, if undertaken, would depend on validated drilling information and geological interpretation rather than magnetic imagery alone.

Key Insights

The November survey gives Killi Resources Limited (ASX:KLI) a broader geophysical framework for prioritising Lodestone drilling. Its existing 110-million-tonne Inferred Mineral Resource remains the established estimate, while the larger magnetic trend represents exploration potential rather than demonstrated additional tonnes. Pending assays, survey interpretation and metallurgical results are the key evidence needed to assess the next stage of work.