Killi set for Lodestone drilling excitement

Killi Resources (ASX:KLI) has moved from a quiet market presence to an active drilling phase at its newly acquired Lodestone magnetite project in Western Australia’s Mid West.

Drilling program aims to expand a modest resource

Since acquiring Lodestone in June, Killi has kept its share price relatively flat, trading within a narrow range. The company now announced a maiden drilling campaign targeting up to 20,000 metres of core to enlarge the current 110 million‑tonne resource that stretches over a 5‑kilometre segment of what is believed to be a 25‑kilometre mineralised system.

The campaign targets up to 20,000 metres of core.

The drill‑bit approach aligns with Killi’s strategy of adding value through resource growth. Early‑stage investors see the program as a way to boost market confidence and potentially lift the company’s valuation.

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Backers include Steve Parsons and Mike Naylor, members of Perth’s informal Richardson Street group, which has previously driven drill‑focused successes at projects such as Bellevue, FireFly, Andean Silver, Alicanto and Cygnus. Their involvement began in early April when former Fortescue executive Nev Power was appointed chairman.

Power’s arrival coincided with a surge in Killi’s market cap, climbing from roughly $7 million to $36 million on speculation that the new leadership would unlock further upside. The Lodestone acquisition, announced on June 11, was a key catalyst, and shareholder approval on Friday confirmed Killi’s transition to a $95 million enterprise after a share‑based raise.

Rare magnetite could attract premium pricing

Power described Lodestone’s ore as a “very rare and extremely valuable form of iron ore.” The deposit consists of recrystallised magnetite, a coarse‑grained material formed by contact metamorphism along a 25‑kilometre strike. This texture reduces the need for extensive grinding, enabling production of iron concentrates with up to 70 percent iron content.

Such concentrates are well‑suited for direct reduction pellets, which feed electric arc furnace (EAF) steelmaking—a process gaining traction for its lower carbon footprint. Premiums of up to 40 percent have been reported for these pellets, reflecting growing demand from the EAF sector.

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The project’s logistics benefit from proximity to existing road, rail and port infrastructure in the Mid West, positioning it to integrate smoothly into supply chains that already serve regional mining operations.

From a practical standpoint, the drilling effort could deliver tangible benefits to local communities. If the resource expands as hoped, the project may generate new employment opportunities and stimulate ancillary services in the area, offering a modest economic boost beyond the immediate mining activity.

The company’s next steps will include assay results, which are expected to be released in stages as the program progresses.