Highlights

  • LKY shares rose 5.56% to AUD 0.19 on 9 April 2026 following drilling program commencement
    • Stock has surged 850% over the past year amid critical minerals sector momentum
    • Diamond drilling underway at El Campo targeting high-grade REE mineralisation
    • Program to test 900m strike with previous results up to 12.1% TREO grades
    • Strategic location near major REE mine supports tier-1 project positioning
    • Fully funded drilling program to deliver initial assays within near-term catalysts

Locksley Resources Ltd (ASX:LKY) shares advanced 5.56% to AUD 0.19 during the morning session on 9 April 2026, following the announcement that diamond drilling has commenced at its El Campo Rare Earth Element (REE) Prospect in California. The stock has delivered an exceptional 850% gain over the past year, reflecting sustained investor interest in the critical minerals sector and the company’s advancing project portfolio.

The latest share price movement appears to be driven by the transition of the El Campo prospect into its first phase of systematic drilling, marking a key step forward in evaluating the scale and continuity of mineralisation at the Mojave Project.

Locksley Resources is focused on developing critical minerals assets within the United States, with its Mojave Project in California representing a central component of its strategy. The project targets both rare earth elements and antimony, aligning with growing demand for materials essential to defence, advanced manufacturing, and clean energy technologies.

Drilling Program Marks Key Development Milestone

The commencement of diamond drilling at the El Campo prospect represents the first structured subsurface testing of the area. The program consists of four initial diamond drill holes designed to evaluate the geological characteristics and continuity of mineralisation identified through previous exploration work.

The drilling campaign will target sheared carbonatite-hosted rare earth mineralisation along approximately 900 metres of strike. This approach is intended to test both the depth and lateral extent of mineralisation, providing critical data to support future exploration and development decisions.

In addition to assessing continuity, the drilling program aims to validate geological interpretations derived from earlier mapping and sampling activities. Core samples obtained during drilling will also be used for detailed geological analysis and potential metallurgical testwork.

The program is expected to take approximately three weeks to complete, with initial assay results anticipated shortly after samples are submitted for laboratory analysis.

High-Grade Surface Results Provide Strong Foundation

Previous exploration at El Campo has delivered encouraging results, with surface sampling returning values of up to 12.1% total rare earth oxides (TREO). These results highlight the presence of high-grade mineralisation at surface and provide a strong basis for the current drilling program.

The objective of the drilling campaign is to determine whether these high-grade zones extend at depth and along strike, which would be a key factor in assessing the overall potential of the prospect.

By generating the first subsurface dataset, the company aims to build a more comprehensive understanding of the deposit, including its geometry, scale, and continuity.

Strategic Location Enhances Project Potential

The El Campo prospect is located approximately four miles southeast of the Mountain Pass Rare Earth Mine, a globally significant rare earth operation. This proximity places the project within a well-established mineral province with existing infrastructure and technical expertise.

Being situated in a Tier-1 jurisdiction further enhances the project’s strategic positioning, particularly in the context of increasing focus on domestic supply chains for critical minerals in the United States.

The location also provides access to established processing knowledge and logistical advantages, which may support future development pathways.

Broader Strategy Focused on Critical Minerals Supply

The drilling program at El Campo forms part of Locksley’s broader strategy to advance domestic supply of critical minerals within the United States. Rare earth elements are classified as essential materials for a wide range of applications, including defence systems, electronics, and renewable energy technologies.

By progressing exploration at Mojave, the company aims to contribute to strengthening supply chain resilience and reducing reliance on external sources of critical materials.

Locksley is also pursuing a mine-to-market strategy for antimony, integrating resource development with downstream processing and technology partnerships. This approach is designed to support the establishment of a more secure and independent supply chain.

Parallel Progress at Desert Antimony Mine

In addition to the El Campo drilling program, Locksley is awaiting assay results from its drilling activities at the Desert Antimony Mine (DAM). These results are expected to provide further insights into the company’s broader project portfolio.

The integration of geological data from multiple projects will contribute to a more comprehensive understanding of mineralisation across the Mojave Project area and support ongoing exploration planning.

Next Steps and Exploration Outlook

Following the completion of the current drilling program, Locksley plans to undertake a series of follow-up activities based on the results obtained.

These include geological logging, sampling, and assay analysis, as well as the integration of drilling data into a three-dimensional geological model. This model will be used to refine exploration targets and guide future drilling campaigns.

The company also intends to plan additional exploration programs to further evaluate the potential of the El Campo prospect and surrounding areas.

In parallel, metallurgical testwork will continue to support the development of processing pathways, particularly in relation to antimony products.

What This Means for Investors?

The commencement of diamond drilling at El Campo represents a key milestone in Locksley’s exploration strategy, marking the transition from surface sampling to subsurface evaluation.

Today’s share price increase reflects market interest in this development, as drilling is expected to provide critical data on the scale and continuity of mineralisation.

With previous high-grade surface results and a strategic location near a major rare earth operation, the project has attracted attention as a potential contributor to the US critical minerals supply chain.

The strong share price performance over the past year indicates sustained investor confidence, while upcoming assay results from the current drilling program are likely to be closely monitored as potential catalysts.