Key highlights

• Iltani Resources has reported the thickest zone of mineralisation drilled to date at its Orient Silver-Zinc-Indium Project in northern Queensland.

• Assays from 15 reverse circulation holes at Orient East were reported to the ASX on 2 November.

• The company is feeding these results into its next silver resource update, with risks and the next programme covered.

Iltani Resources (ASX:ILT) has reported the thickest zone of mineralisation drilled to date at its Orient Silver-Zinc-Indium Project in northern Queensland. The company told the ASX on 2 November that assays from 15 reverse circulation holes at Orient East had delivered multiple strong intercepts.

Hole ORR221 returned 106 metres at 142.7 g/t silver equivalent (AgEq) from eight metres, including 22 metres at 383.8 g/t AgEq from 52 metres. Five intercepts graded above 1,000 g/t AgEq over one metre, led by 1 metre at 1,774.69 g/t AgEq from 83 metres in ORR225. ORR228 intersected 32 metres at 227.3 g/t AgEq from 40 metres.

A hole meant to close the zone

At the southern edge of Orient East, ORR239 intersected 38 metres at 91.7 g/t AgEq from 135 metres. Managing director Donald Garner said the hole had been drilled to close off the mineralisation, but instead delivered multiple intersections of high-grade silver-lead-zinc-indium mineralisation. He said more holes are needed to understand how far the zone could extend.

A hole that fails to close off a zone is often encouraging, because it suggests the system is larger than modelled. It does not, by itself, define the size of the extension.

Silver equivalent explained

The results are reported as silver equivalent, which converts lead, zinc and indium values into an equivalent amount of silver using price and recovery assumptions. AgEq figures can therefore change if metal prices or recoveries change. Indium is a minor metal used in flat-panel displays and some solar technologies, and its market is small.

Feeding the resource update

Iltani's initial 110-hole campaign for the Orient resource was completed in October. The data will feed into an updated mineral resource estimate for Orient West and Orient East during the December quarter, ahead of a scoping study in early 2027.

The current Orient resource stands at 62.5 million tonnes at 81.5 g/t AgEq. Several of the new intercepts grade well above that average, which suggests the update could include higher-grade domains. How much the overall grade or tonnage changes will depend on the full data set, including weaker holes, and on the cut-off grade applied.

The next programme

Iltani is planning a 145-hole follow-up programme, intended to begin in November subject to rig availability and ahead of the wet season. The campaign will target the Link zone and the Orient West north-east extension to grow the resource. North Queensland's wet season can limit access, so timing is important.

Market context

Silver has attracted investor interest as both a precious and an industrial metal, though silver prices fell 6% on 31 October, illustrating its volatility.

Why it matters

Thick, near-surface intercepts can support an open-pit development concept, which generally carries lower costs than underground mining. The coming resource update will be the first test of how the latest drilling changes Orient's scale.

Risks

Polymetallic deposits require more complex processing to produce separate concentrates, and metallurgical recoveries for each metal will be important. The scoping study, when released, will be a preliminary assessment.

What to watch

Investors may watch for the December-quarter resource update, the start of the 145-hole programme and metallurgical results.

Interpreting grade-thickness

Six intercepts exceeded 1,000 silver-equivalent gram-metres, a measure that multiplies grade by width. Gram-metre figures help compare holes with different widths, but they can make a wide, moderate-grade interval look similar to a narrow, very high-grade one. Both can be valuable, yet they imply different Mining approaches. Investors should look at the grade and width separately, as well as the depth from surface, when assessing how the new results might feed into the resource update.