Killi Resources Limited (ASX: KLI), an Australia-based explorer focusing on valuable mineral deposits, has announced a significant expansion to its portfolio with the acquisition of the Lodestone Iron Ore Project in Western Australia’s Midwest Iron Ore District. Located approximately 200 kilometres from the Port of Geraldton and boasting immediate access to grid power, road, and rail networks, the project holds an inferred resource of 110 million tonnes (Mt) at 33% mass recovery, capable of yielding a 69% Fe concentrate with very low impurities.
The company highlighted Lodestone’s unique potential, noting that the current resource covers only about 20% of the known magnetite mineralisation, which extends for 25 kilometres. This suggests substantial resource growth opportunities. Crucially, the project features a uniquely coarse crystalline magnetite body, which is expected to allow for a high-grade concentrate to be produced using a potentially more cost-effective processing route compared to other nearby magnetite operations. This high-purity product is anticipated to attract a substantial premium in the market.
To underpin the acquisition and future development, Killi has secured firm commitments for a A$15 million (before costs) share placement, enhancing its cash position to approximately A$18.5 million upon completion. The acquisition also brings strategic leadership, with former Fortescue Metals Group Managing Director and Killi Chairman Nev Power stating that Lodestone is a “company-making acquisition” with a clear pathway to production. He emphasised the project’s alignment with the growing demand for high-purity, high-value direct reduction magnetite, driven by the global shift towards green steel. Hamish Halliday, associated with the project’s vendors, will join Killi’s Board as a Non-Executive Director, further bolstering the company’s iron ore expertise.
