Kaili’s Rare Earth Drilling Approval Raises Questions on Resource Potential
Kaili Resources has received official approval to begin a targeted drilling program for rare earth elements across three tenements in South Australia’s Limestone Coast region, advancing its exploration ambitions in a promising mineral province.
- Approval granted by South Australia's Department of Energy and Mining
- Drilling to focus on Lameroo, Karte, and Coodalya tenements
- Aircore drilling planned to test shallow rare earth element mineralisation
- Previous assays at Lameroo showed encouraging rare earth oxide grades
- Project located near key infrastructure in the Murray Basin
Regulatory Approval Unlocks Next Phase
Kaili Resources Limited has taken a significant step forward in its rare earth exploration efforts after securing approval from the South Australian Department of Energy and Mining to commence drilling activities. This regulatory green light covers environmental protection and rehabilitation plans across three tenements; Lameroo, Karte, and Coodalya; situated in the Limestone Coast region, a known hotspot for rare earth element (REE) potential.
Strategic Location and Drilling Approach
The targeted tenements lie within the Murray Basin, approximately 200 kilometres east of Adelaide, an area characterised by the Loxton/Parilla Sands. These sands are known to host ionic clay-style deposits of rare earth elements, particularly within fine clay fractions dating back to the Tertiary period. Kaili plans to deploy Aircore drilling techniques to reach depths of up to 20 metres, focusing on shallow mineralisation that could indicate economically viable REE concentrations.
Building on Encouraging Early Results
Earlier exploration work at Lameroo, including a widely spaced drilling program completed in early 2024, yielded promising assay results with total rare earth oxide (TREO) grades reaching up to 356 parts per million over one metre intervals. These findings have informed the current drilling design, with the company aiming to refine and expand its understanding of the mineralisation across all three tenements. Notably, magnetic rare earth oxides; key for battery and technology applications; constitute about 17% of the TREO identified so far.
Regional Context and Industry Momentum
Kaili’s initiative aligns with broader regional activity, as nearby Australian Rare Earths has reported a substantial JORC resource estimate and secured government co-funding for its pre-feasibility studies. This regional momentum underscores the growing strategic importance of rare earths in Australia, driven by global demand for critical minerals essential to clean energy and advanced technologies.
Next Steps and Market Implications
With drilling set to commence imminently, Kaili Resources is currently finalising contracts with drilling and traffic management teams, alongside appointing a site geologist to oversee operations. The company’s progress will be closely watched by investors and industry observers eager to see whether these early signals translate into a meaningful resource base. As the rare earths sector continues to attract attention, Kaili’s developments could position it as a noteworthy player in South Australia’s evolving mineral landscape.
Bottom Line?
Kaili’s upcoming drilling campaign could unlock new rare earth resources, but results and timelines remain key to watch.
Questions in the middle?
- What specific timelines and budgets has Kaili set for the drilling program?
- How might assay results from Karte and Coodalya compare to those from Lameroo?
- What are the potential challenges in scaling exploration to resource development in this region?
