The Lodestone project is located in the iron ore region of the Midwest, about 200 km from the port of Geraldton. According to the company, the advantage of the project is its proximity to existing infrastructure, including paved roads, rail links, and the power grid. Currently, the estimated mineral resources of the project amount to 110 million tons. Killi Resources stated that the testing work under the project showed the potential for producing high-quality iron ore concentrate with an iron content of about 69 percent and low levels of impurities.
Killi Resources stated that Lodestone's current resources cover only about 20 percent of the known magnetite mineralization, indicating potential for future resource growth. The company's immediate focus will be on drilling a broader mineralized system to increase the size and reliability of resources.
Killi Chairman of the Management Board Nev Power described the acquisition as an opportunity to create a company, pointing to the project's resource base, growth potential, infrastructural advantages and exposure to demand for high purity iron ore products. High-quality magnetite concentrate is increasingly being considered as a raw material that can contribute to the production of low-emission steel, including production routes related to direct reduction and electric arc furnaces.
Following the acquisition, Killi Resources plans to continue drilling and development research at the Lodestone field. The company has also received approval for its first major drilling program on this project, which is expected to focus on both resource expansion and updating of the existing resource classification.
The acquisition of Lodestone marks Killi Resources' entry into the Western Australian iron ore sector and positions the company in a region that already has established iron ore mining facilities and export infrastructure.
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