Ore Resources Extends Big Red and Potoroo Lithium Beyond Resource Boundary
Key Takeaways
- RC drilling at Kangaroo Hills has extended lithium mineralisation at both the Big Red and Potoroo pegmatite systems beyond the current Mineral Resource Estimate boundary, with mineralisation remaining open to the north and west.
- Headline intercepts include 15m @ 1.14% Li₂O at Potoroo (KHRC219) and 18m @ 0.84% Li₂O at Big Red (KHRC224), with higher-grade sub-intervals reaching 1.82% Li₂O — grades consistent with or exceeding the existing resource model.
- Big Red West intersected a 44m-thick pegmatite in hole KHRC227, suggesting the system may be thickening eastward and representing a compelling new regional exploration target.
- OR3 holds a cash balance of A$6.8 million with zero debt as at 30 June 2026, providing a runway to advance the project toward a Final Investment Decision targeted for mid-2027.
- Strategic partner discussions and offtake negotiations are ongoing, with Mining Licence applications and environmental approvals advancing in parallel toward the FID milestone.
Drilling pushes Big Red and Potoroo beyond the resource boundary
Ore Resources (ASX: OR3) has confirmed that RC drilling conducted across its Coolgardie Lithium Projects during July and August 2026 has extended lithium mineralisation at both the Big Red and Potoroo pegmatite systems beyond the current Mineral Resource Estimate (MRE) boundaries. The results build directly on the company’s DSO development strategy, anchored by the DSO Scoping Study announced on 26 August 2026, and confirm that mineralisation remains open to the north and west, keeping the door open for further resource growth.
The Kangaroo Hills DSO Scoping Study, which underpins the company’s development strategy, modelled a post-tax NPV of $220.8M and established the economic case for a low-capex, direct-shipping pathway that the current drilling programme is now working to expand.
Programme scope and financial position at a glance:
- 26 RC holes drilled for approximately ~3,300m across July–August 2026
- 11 holes at the Kangaroo Hills Lithium Project; 15 holes at the Miriam Lithium Project
- Drilling targeted extensions to Big Red and Potoroo, plus regional targets at Big Red West and Western Grey, and first-pass testing at Miriam
- Cash balance: A$6.8 million, zero debt (as at 30 June 2026)
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Significant intercepts confirm grade, thickness and continuity
The headline results from Big Red and Potoroo demonstrate consistent grade and width both within and beyond the current MRE boundary. The table below draws from Appendix 1 Table 1 of the source announcement.
| Hole ID | System | From (m) | Width (m) | Li₂O (%) |
|---|---|---|---|---|
| KHRC219 | Potoroo | 69m | 15m | 1.14% |
| KHRC219 (incl.) | Potoroo | 76m | 6m | 1.60% |
| KHRC220 | Potoroo | 61m | 6m | 0.92% |
| KHRC224 | Big Red | 147m | 18m | 0.84% |
| KHRC224 (incl.) | Big Red | 155m | 10m | 1.04% |
| KHRC225 | Big Red | 142m | 15m | 1.00% |
| KHRC225 (incl.) | Big Red | 150m | 3m | 1.82% |
At Potoroo, holes KHRC219 and KHRC220 intersected thick mineralised zones within the western portions of the deposit, where Inferred Resources have been defined. Both holes returned grades higher than previously modelled at Potoroo, which is significant because it supports the potential for future resource classification upgrades in those areas.
At Big Red, KHRC224 and KHRC225 confirmed a northern extension of the pegmatite system outside the MRE boundary entirely. The grades and widths are consistent with the existing resource, reinforcing continuity and scale. Mineralisation remains open further to the north, pointing to additional resource growth potential with follow-up drilling.
Earlier high-grade lithium intercepts at Kangaroo Hills established the geological foundation that the July-August 2026 programme has now built upon, with the new holes confirming that both grade and structural continuity extend further than the existing MRE captured.
CEO and Managing Director Nick Rathjen
“These latest RC drilling results continue to highlight the significant growth potential at Kangaroo Hills, confirming extensions to mineralisation beyond the current MRE boundary, while also returning strong results from areas currently classified as Inferred Resources. These outcomes have increased our confidence in the Kangaroo Hills geological model by demonstrating the continuity, grade and thickness of mineralisation, providing a strong foundation for future resource growth and classification upgrades.”
What is a pegmatite system, and why does it matter for lithium investors?
Lithium-caesium-tantalum (LCT) pegmatites are coarse-grained igneous rock formations that concentrate lithium-bearing minerals, most importantly spodumene, the primary commercial source of lithium. When a pegmatite is thick, continuous, and high-grade, it can support an economically viable lithium deposit.
An MRE boundary defines the currently modelled extent of a mineral resource. Drilling beyond it and finding more mineralisation means the resource footprint may be larger than currently estimated, which can translate to more tonnes, a longer mine life, and a larger project overall.
DSO, or Direct Shipping Ore, refers to ore that can be mined, crushed, and shipped without requiring a processing plant on site. That significantly lowers up-front capital expenditure and can accelerate the path to cash flow.
When geologists say mineralisation is “open to the north and west,” they mean the system has not been closed off in those directions. More drilling in those areas could extend the resource further.
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Regional targets and the road to a Final Investment Decision
Beyond the main deposits, drilling at Big Red West intersected a 44m-thick pegmatite in hole KHRC227, returning 2m @ 1.12% Li₂O from 67m and 1m @ 1.48% Li₂O from 89m. This follows up a 17m-thick pegmatite intersected during 2024 drilling at the same target, and the results suggest the system remains open and may be thickening towards the east. OR3 describes Big Red West as a compelling exploration target with the potential to host mineralisation analogous to that at Big Red and Potoroo.
Drilling at Western Grey and the Miriam Lithium Project did not return significant lithium intercepts. At Miriam, however, context is important: only 1 of 13 identified outcropping pegmatite targets was tested in this programme, with the single hole intersecting pegmatite zones of up to 2m in width. Twelve targets remain untested.
CEO and Managing Director Nick Rathjen
“While initial drilling at Miriam did not return significant lithium mineralisation…With twelve additional targets remaining untested, the project remains at an early stage of evaluation and continues to offer significant lithium discovery potential…”
The path from current exploration results through to a Final Investment Decision is now clearly articulated by the company. Near-term catalysts for investors include:
- Early October 2026: RC drilling recommences at the Forrest and Burbanks Monarch gold prospects within the Coolgardie Gold Projects
- First-pass air core drilling at Avoca, targeting new gold discovery potential
- Mining Licence applications progressing towards grant
- Environmental approval workstreams advancing in parallel
- A Final Investment Decision (FID) on the Kangaroo Hills project is targeted for mid-2027, subject to receipt of requisite approvals and finalisation of project funding
- Strategic partner discussions are ongoing, with offtake arrangements and project funding solutions being negotiated
What ties these milestones together is a development timeline that is progressively being de-risked. The drilling results reported here extend the resource boundary, support classification upgrades in Inferred areas, and identify a new regional target in Big Red West. Each of those outcomes adds optionality to a project that already has a completed DSO Scoping Study and active conversations with strategic partners about bringing it into production.
Ready to Explore the Resource Growth Potential at Kangaroo Hills?
RC drilling has extended lithium mineralisation at both the Big Red and Potoroo pegmatite systems beyond the current MRE boundary, reinforcing the scale of a project already underpinned by a post-tax NPV of $220.8M from the DSO Scoping Study. With mineralisation remaining open to the north and west, and a Final Investment Decision targeted for mid-2027, the development timeline continues to de-risk.
Explore the full drilling results and project milestones by visiting the Ore Resources (ASX: OR3) company profile on Discovery Alert, where you can track upcoming catalysts including strategic partner discussions and Mining Licence progress.