en.Wedoany.com Reported - Australian exploration company Killi Resources Limited (ASX: KLI) announced on June 23, 2026, that it has obtained all permits for the first-round drilling program at the Lodestone Iron Ore Project in the Mid-West region of Western Australia. Located east of the town of Morawa, approximately 200 kilometers from the Port of Geraldton, the project currently holds an inferred iron ore resource of 110 million tonnes. The first-round drilling will focus on infill drilling and peripheral extension drilling, aiming to expand the resource scale, upgrade resource classification levels, and obtain metallurgical samples and geological data for subsequent beneficiation tests and engineering studies.
Founded in 2021 and headquartered in West Perth, Western Australia, Killi Resources is an Australian listed company focused on the exploration of gold, copper, and critical minerals. The company's previous primary assets included gold-copper projects in the Tanami region of Western Australia and exploration projects in the Charters Towers/Ravenswood area of Queensland. In June 2026, Killi Resources added the Lodestone Iron Ore Project to its portfolio by acquiring an 80% equity interest in Yukon Resources Pty Ltd. The acquisition was completed with 92.727 million Killi shares (priced at A$0.22 per share, valued at approximately A$20.4 million) plus a future 2.5% gross revenue royalty. The sellers were mining executives Steve Parsons and Hamish Halliday (each holding 45%) and Karen McLean (holding 10%), with Hamish Halliday having joined the Killi board as a non-executive director.
The Lodestone Project is located in the Mid-West iron ore region of Western Australia, adjacent to highways, railways, power grids, and infrastructure such as the Port of Geraldton. The existing inferred resource of 110 million tonnes has a mass recovery rate of 33%, capable of producing a low-impurity iron concentrate with an iron grade of 69%. According to information on Killi's website, the project can produce iron concentrate with grades ranging from 68% to 70% iron and has the potential to develop direct reduction iron (DRI) feedstock products. The project is currently in the exploration stage, and the design capacities of the mine and processing plant have not yet been disclosed. Killi Resources Chairman Nev Power (former Managing Director of Fortescue Metals Group) stated that Lodestone is a "company-defining acquisition" with a clear path to production and aligns with the growing global demand for high-purity, high-value direct reduction magnetite driven by the green steel transition.
To support this acquisition and subsequent development, Killi Resources has secured A$15 million (before expenses) in equity placement commitments, with the company's cash reserves expected to increase to approximately A$18.5 million upon completion. The placement will be conducted in two tranches. The first tranche is expected to raise approximately A$10.8 million, while the second tranche of approximately A$4.2 million requires shareholder approval at a general meeting to be held in July 2026.
The approval of this drilling permit has cleared a key regulatory hurdle for resource expansion and development advancement at the Lodestone Project. Killi Resources is transitioning from a small company primarily focused on gold and copper exploration to a critical minerals supplier with a large-scale iron ore asset. The commencement of the first-round drilling will help further clarify the ore body distribution and resource scale, providing data support for subsequent beneficiation process tests and mine engineering feasibility studies.
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