Ore Resources Declares Maiden 3.1Mt Lithium Resource at Kangaroo Hills

Ore Resources has declared an initial mineral resource at its Kangaroo Hills lithium project in Western Australia’s Coolgardie region, reporting a total of 3.10 million tonnes grading 1.01% lithium oxide (Li₂O) for 31,200 tonnes of contained Li₂O, alongside an average tantalum pentoxide (Ta₂O₅) grade of 118 parts per million (ppm). The estimate is underpinned by over 38,000 metres of RC, air core, and diamond drilling carried out across programmes stretching back to the discovery of lithium mineralisation at the project in late 2022.

For a junior explorer, a maiden mineral resource estimate (MRE), a formal, independently classified estimate of the mineral inventory in the ground, is the threshold that separates a discovery story from a development candidate. It opens the door to economic studies, offtake conversations, and strategic partnerships that cannot proceed without a publicly declared resource on the record.

The independent technical process behind mineral resource estimates involves geostatistical modelling of drill-hole assay data to produce grade and tonnage figures that satisfy JORC reporting standards, a rigorous step that distinguishes a publicly disclosed resource from the company’s own internal geological interpretation.

Here is what the numbers tell you about where Kangaroo Hills stands, what the tantalum dimension adds to the story, and which variables will determine whether this resource becomes a mine.

Kangaroo Hills delivers its first defined resource: 3.1Mt at 1.01% Li₂O

The announcement on 26 August 2026 marked a formal turning point for the Kangaroo Hills project, with Ore Resources Managing Director and CEO Nick Rathjen characterising the maiden MRE as the culmination of a multi-year drilling effort. Systematic RC, air core, and diamond programmes spanning roughly four years have progressively delineated the spodumene-bearing mineralisation first intersected at Kangaroo Hills, yielding the resource now on record.

The formal resource parameters are summarised below.

Nick Rathjen, Managing Director and CEO, characterised the maiden MRE as a pivotal achievement for the company, reflecting the conclusion of a sustained drilling effort that began when lithium mineralisation was first recognised at Kangaroo Hills in 2022. He also noted that the project’s 118ppm Ta₂O₅ grade compares favourably with those of nearby WA lithium operations where tantalum is produced alongside lithium as a secondary commodity.

The maiden MRE moves Kangaroo Hills from an exploration play to a project with a formal, publicly declared resource inventory. That is the specific threshold that changes how counterparties, including potential offtake partners and project financiers, are able to engage with it. Before this announcement, those conversations had no resource to reference. Now they do.

Four years of drilling behind one number: the geology and intercepts that built the resource

The 3.10Mt figure did not arrive in a single campaign. Ore Resources first intersected spodumene-bearing lithium-caesium-tantalum (LCT) pegmatite mineralisation at Kangaroo Hills in late 2022. What followed was a systematic programme of RC and diamond drilling across 2023 to 2026, progressively expanding the mineralised footprint at the Big Red pegmatite, the principal target within the project.

The key intercepts at Big Red illustrate why the resource carries a 1.01% grade across broad, near-surface widths:

• 29m at 1.36% Li₂O from 38m depth
• 27m at 1.32% Li₂O from 64m depth
• 31m at 1.13% Li₂O from 86m depth (including 20m at 1.43% Li₂O)
• 27m at 1.04% Li₂O from 118m depth (including 15m at 1.53% Li₂O)

Step-out drilling extended the mineralised envelope further, returning 34m at 1.11% Li₂O from 77m and 28m at 0.89% Li₂O from 68m. Infill work has defined consistent grades and widths over approximately 500 metres of strike. A mid-2026 hole returned 12m at 1.05% Li₂O from 147m, confirming grade continuity at depth.

Those widths matter. This is not a narrow vein system. The broad, near-surface geometry at Big Red is the kind of mineralised body that makes open-pit extraction commercially feasible to model.

Potoroo pegmatite adds a second front to the system

Drilling at the Potoroo pegmatite in mid-2026 returned 11m at 1.05% Li₂O from 111m and 5m at 1.09% Li₂O from 158m. These results are earlier-stage than Big Red, but they confirm the multi-pegmatite character of Kangaroo Hills and support the company’s stated confidence in exploration upside beyond the current resource footprint. The 3.10Mt figure may represent a floor rather than a ceiling for the project’s resource inventory.

What the 118ppm tantalum grade means for the project’s revenue profile

Most readers will register the lithium headline and move past the tantalum number. It is worth slowing down.

Tantalum pentoxide (Ta₂O₅) is a metal compound used in electronics, aerospace, and medical devices. In LCT pegmatites like Kangaroo Hills, tantalum occurs alongside lithium-bearing minerals and can be recovered as a co-product during processing, generating a secondary revenue stream that reduces the effective cost of producing the primary lithium concentrate.

The 118ppm Ta₂O₅ average grade across the maiden resource sits within the 100-150ppm range where co-product credits can materially improve project economics, subject to metallurgical recovery and market terms. The company has indicated that this grade holds up well against comparable WA hard-rock lithium projects where tantalum concentrates are produced as a secondary output.

But a resource-level grade is not the same as a confirmed recoverable grade. Several conditions must be met before the tantalum stream generates actual revenue:

The revenue contribution from a co-product stream depends heavily on prevailing tantalum price benchmarks, which have historically lacked the price transparency of major exchange-traded metals and have been assessed through opaque trader quotations rather than published spot prices.

• Metallurgical recoverability confirmed through targeted testwork
• A saleable tantalum concentrate specification achieved
• Marketing arrangements concluded with end-users or traders

Company testwork confirms that spodumene accounts for approximately 90% of contained Li₂O, and the processing route combines dense media separation (DMS) with froth flotation, the conventional WA hard-rock flowsheet. The tantalum dimension adds optionality. A project with a credible co-product grade at resource declaration stage is in a better position to attract offtake interest than one selling a single commodity stream, but the metallurgical and marketing work to prove that stream remains ahead.

The content of this article is intended for general informational use only and does not constitute financial or investment advice. Readers are encouraged to undertake their own due diligence and seek guidance from a qualified financial adviser before making any investment decisions.

From maiden resource to potential mine: the DSO study and what comes next

The maiden MRE unlocks the next stage of the development sequence: a direct shipping ore (DSO) study. DSO is a near-term, lower-capital pathway to generate early revenue by shipping ore directly to a processor without constructing a full beneficiation plant on site. For a junior with a newly declared resource, it is the fastest route to cash flow and reduces funding risk ahead of a larger processing decision.

Ore Resources has confirmed the DSO study is advancing as of August 2026, supported by the maiden MRE. The Coolgardie region’s existing WA hard-rock lithium processing infrastructure is relevant here; the logistics of shipping ore to an established facility are more straightforward than in a greenfields jurisdiction with no nearby processing capacity.

The WA lithium DSO pathway is attracting growing interest among junior explorers in the Coolgardie and broader Goldfields region, with TG Metals’ concurrent progress on the Burmeister mining lease providing a live comparable for how near-term DSO studies translate into formal tenure applications.

The development sequence from this point follows a logical progression:

1. Maiden MRE published (completed)
2. DSO study outcome
3. Scoping or pre-feasibility study
4. Resource category upgrade from Inferred to Indicated or Measured (where applicable)
5. Offtake and financing engagement

Each of those milestones carries its own technical and commercial requirements, and the order is not rigid. But together, the MRE and the DSO study give Ore Resources a credible two-track story: near-term cash flow potential from DSO, and a growing resource base that could underpin a longer-term processing plant decision.

Exploration upside beyond the current resource footprint

The company has signalled ongoing optimism regarding the wider exploration potential of its Coolgardie lithium project portfolio. The maiden MRE covers only the current drilled portion of Kangaroo Hills; the Potoroo system and other targets remain in earlier stages. The 3.10Mt figure is not the full extent of the company’s land position or exploration ambition.

What the Kangaroo Hills milestone signals for Ore Resources and what still needs to prove out

A 3.10Mt resource at 1.01% Li₂O is modest relative to the largest WA lithium operations. It is also credible and credibly graded for a junior at this stage of development. The clean, spodumene-dominant mineralogy (approximately 90% of contained Li₂O attributable to spodumene) and the 31,200 tonnes of contained lithium oxide give the project a solid foundation. A grade around 1.0% Li₂O is consistent with economically viable WA hard-rock lithium projects, particularly where the mineralogy is clean.

The maiden MRE changes the project’s status. It does not resolve its development questions. Four specific variables will determine whether Kangaroo Hills advances from resource to mine:

• JORC category upgrade: Converting a meaningful proportion of the resource from Inferred to Indicated or Measured is necessary before pre-feasibility or scoping work can proceed with confidence.
• DSO study outcome: The economics of the near-term shipping pathway will shape the company’s ability to generate early revenue and reduce financing risk.
• Tantalum metallurgical recovery: Confirming that the 118ppm Ta₂O₅ grade translates into a recoverable, saleable concentrate would add a genuine co-product credit to the project’s economics.
• Financing and offtake progress: A declared resource enables these conversations; the terms they produce will determine the project’s path to construction.

Projected lithium supply deficits through 2028 provide the demand-side context that determines whether new projects like Kangaroo Hills can find offtake partners willing to commit to volume agreements before a full feasibility study is complete.

For a reader deciding how to weight this announcement, the honest read is that Ore Resources has passed one significant threshold and now faces the next set of technical and commercial hurdles. A maiden MRE is a milestone, not a development decision. Understanding what still needs to happen positions you to assess the significance of each subsequent announcement as the project advances.

Past performance does not guarantee future results. Financial projections are subject to market conditions and various risk factors.

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