Killi Resources (ASX:KLI) has delivered another strong step-out result at its Lodestone Iron Ore Project, intersecting a 50m zone of coarse crystalline magnetite around 600m south of the current Resource boundary.
The market has noticed.
Killi has traded strongly this morning as investors respond to another early sign that the 110Mt Resource could have significant room to grow.
The magnetite keeps going
The latest hole, KKDD004, successfully intersected the main magnetite zone well outside the current Resource footprint.
Logging indicates the interval contains around 35% to 50% magnetite over ~50m, with strong magnetic susceptibility readings supporting the visual estimates.
Assays are still pending.
Importantly, the hole also intersected a second parallel hanging-wall zone around 16m wide.
That gives Killi another potential lode to follow as drilling progresses.
Figure 1: KKDD004 Drill collar location map and KKDD004 cross section showing Magsus readings.
600 metres beyond the line
The key point is location.
KKDD004 sits around 600m south of the current Resource and around 500m south of KKDD001.
The fact that similar coarse, recrystallised magnetite is appearing again that far outside the existing model strengthens the case for strike continuity and resource growth.
Killi still has plenty of drilling left.
Bigger system, bigger target
Lodestone currently hosts a 110Mt JORC Inferred Resource across only around 5km of a 25km-long recrystallised magnetite system.
The current 20,000m RC and diamond program is designed to infill and extend drilling across around 15km of that trend.
That gives Killi a very large runway to test how much of the broader system can ultimately be brought into the Resource.
The product angle matters
Killi is not just chasing tonnes.
The project has already delivered a 69% Fe concentrate from prior Davis Tube testing, with the coarse-grained magnetite and low-impurity characteristics central to the company’s strategy.
The target market is premium direct-reduction feed for electric arc furnaces and lower-carbon steelmaking.
That is why the metallurgy matters just as much as the drill widths.
What comes next
KKDD004 will now move through DTR analysis and broader metallurgical testwork, while drilling continues across Lodestone.
Killi expects assays and metallurgical results to come through progressively, with multiple Resource updates anticipated over coming quarters.
The current Resource only covers a fraction of the system, and the latest hole suggests the magnetite is not paying much attention to where that boundary has been drawn.
