Killi Resources Extends Lodestone Magnetite Strike 600m Beyond Resource Boundary

Step-out drilling extends Lodestone’s reach 600m beyond resource boundary

Killi Resources has completed its fourth diamond core hole at the Lodestone Iron Ore Project in Western Australia, with KKDD004 drilled 600m south of the current resource boundary and intersecting a 50m wide zone of crystalline magnetite. Geological logging confirmed the same coarse-grained, recrystallised magnetite previously identified in KKDD001 some 500m to the north, supporting strong strike continuity along the Lodestone system.

The hole also intersected a second, approximately 16m wide hanging wall zone, identifying a parallel lode structure beyond the main magnetite body. That secondary zone is an early signal of resource growth potential that extends beyond what the current drilling has already outlined.

Strong magnetic susceptibility readings completed on the core validate preliminary visual estimates of 35% to 50% crystalline magnetite occurring over the 50m intersection. These are geological observations, not assay-confirmed figures. Laboratory Davis Tube Recovery (DTR) analysis and metallurgical test work are required before any grade or recovery claims can be made, and those results are pending.

This is the fourth hole in a 20,000m combined RC and diamond core program designed to grow and upgrade the existing 110Mt JORC Inferred Mineral Resource. The Lodestone system extends over a 25km strike length, with the current resource capturing only approximately 5km of that trend.

Managing Director Hamish Halliday

“This is an outstanding result which shows the excellent potential for significant and rapid resource growth at Lodestone. We are drilling well south of our current resource boundary and continuing to hit broad zones of very coarse crystalline magnetite. Diamond core logging continues to confirm that Lodestone hosts a rare, coarse grained orebody, ideally suited for the supply of high-purity, high value iron ore sought after by the new generation of electric arc furnaces. As our resource base grows, the Company will look to take advantage of its exceptional location with access to under-utilised and high quality existing infrastructure.”

What magnetite grade and coarse crystallisation mean for investors

Not all iron ore is equal, and the distinction at Lodestone matters commercially. Standard iron ore is sold on bulk volume at relatively modest margins. High-purity magnetite concentrate, particularly material suited to Direct Reduction (DR) grade products, targets a different market entirely and attracts a substantial price premium.

The announcement describes Lodestone as a banded-iron sequence that has been thermally upgraded through metamorphic recrystallisation. That geological process has done two things simultaneously: it has coarsened the magnetite crystals and purified them by reducing impurity minerals. Both outcomes directly improve the economics of processing.

Coarser crystal size means the magnetite can be liberated from surrounding rock at a coarser grind size. The existing resource already demonstrates this, delivering product at +150 micron grind sizes, which translates to lower energy input required during the separation process.

The existing 110Mt resource delivers a concentrate grade of 69% Fe from a Davis Tube (Mass) Recovery (DTR) of 33%. Davis Tube Recovery is a laboratory test that measures how much iron concentrate can be magnetically extracted from crushed ore, and at what purity. A 69% Fe concentrate grade positions Lodestone’s product within the specifications sought by DR-grade buyers, which is the feedstock for low-carbon electric arc furnaces (EAF) used in green steel production.

The key contrast between standard iron ore and DR-grade magnetite concentrate:

• Standard iron ore: Lower Fe grade, sold in bulk, minimal processing required, lower price point
• DR-grade magnetite concentrate: High Fe purity, low impurity profile, requires processing to concentrate, attracts substantial price premium

The announcement explicitly describes iron ore of this nature as rare. Visual estimates from KKDD004 suggest the same coarse-grained character extends 600m south of the known resource, but these remain preliminary observations. Assay results and DTR analysis from KKDD004 are pending and will be reported when available.

The 20,000m program and what comes next

The current drilling program has four stated objectives:

The Lodestone Iron Ore Project was established with an initial 110Mt JORC Inferred Mineral Resource, and the current 20,000m drilling program is designed to systematically grow that base across a magnetite trend that remains largely untested beyond the first 5km.

1. Significantly grow and upgrade the confidence category of the existing 110Mt JORC Inferred Mineral Resource Estimate
2. Infill and extend drilling coverage across approximately 15km of the 25km Lodestone recrystallised magnetite system
3. Provide metallurgical samples targeting a premium, high-purity DR-grade concentrate
4. Support delivery of a resource of sufficient confidence to underpin a future economic study

KKDD004 is the fourth of nine planned diamond core holes at Lodestone. Core from the hole will be submitted to ALS Labs for DTR analysis and a wider metallurgical test work programme. Assay results will be progressively released as drilling advances, with the company anticipating multiple resource updates over coming quarters.

The three drill holes disclosed in the announcement are summarised below:

All three holes carry an azimuth of 90° as listed in the announcement’s Table 1. The program continues with further holes planned across the Lodestone system, with updates to be provided as results come to hand.

Lodestone’s infrastructure advantage and the investment case

The scale of what remains to be tested is the central investment point. Approximately 5km of a 25km magnetite trend is captured in the current 110Mt resource. The drilling corridor is designed to systematically chase the remaining strike length, with the programme targeting infill and extension across approximately 15km in this phase alone.

The product positioning is aligned with a structural shift in steel production. Electric arc furnaces require high-purity iron feedstock, and the global build-out of EAF-based green steel capacity creates demand for exactly the DR-grade concentrate that Lodestone’s metallurgical results suggest the project can produce. That is a market timing point rather than a guaranteed outcome, and it depends on Killi confirming those results at scale through ongoing test work.

Managing Director Hamish Halliday also referenced the project’s location, noting the company intends to take advantage of “its exceptional location with access to under-utilised and high quality existing infrastructure.” The announcement does not name specific infrastructure assets, so the nature of that advantage remains to be detailed in future updates.

Killi’s broader portfolio provides additional optionality for investors evaluating the company’s Australian exploration model. Beyond Lodestone, the company holds 100% ownership of the West Tanami Gold Project in Western Australia, two gold-copper exploration projects in Queensland (Mt Rawdon West and Ravenswood), and copper rights to the Balfour Project in the Pilbara. Lodestone is the current operational focus, but the portfolio reflects a diversified Australian exploration base.

Killi’s gold-copper exploration projects in Queensland, including Mt Rawdon West and Ravenswood, represent a separate strand of the company’s Australian portfolio that has produced its own newsflow independent of the Lodestone magnetite program.

Ready to Learn More About the Lodestone Iron Ore Project?

Killi Resources’ step-out drilling at Lodestone has intersected a 50m wide crystalline magnetite zone 600m beyond the current resource boundary, reinforcing the potential to significantly grow the existing 110Mt JORC Inferred Mineral Resource across a largely untested 25km strike length. With DR-grade concentrate specifications aligned to the growing green steel market, the project’s commercial case is building with each new hole.

To follow the progress of the 20,000m drilling programme and assess the full investment case, explore the Lodestone Iron Ore Project on Discovery Alert for detailed project coverage, resource data, and ongoing results as they are released.