A glimpse at ongoing exploration activities of Energy sector player, Kaili Resources

Kaili Resources Limited (ASX: KLR) is a Sydney-based energy sector company, focussing on gold, iron, cobalt and coal mining located across Western Australia and Queensland.

Source: Company’s March 2019 Quarterly Activities Report

Kaili Resources recently released its Quarterly Activities Report for the three months to 31 March 2019, touching upon the progress and status of each of its key projects and their respective exploration targets. These projects are briefed as below.

Queensland

• Clarence Moreton Basin (Maryvale) Coal Project, where the exploration license EPC 1506 is held 100% by Kaili Resources’ subsidiary (wholly owned) APEC Coal Pty Ltd. During the last quarter, Kaili reviewed its exploration so far, intending to expand the current resource base into the exploration target areas. APEC managed the Maiden Resource (JORC 2012 compliant) while Brisbane consultancy, Geoconsult Pty Ltd executed the JORC resource work.

The project is strategically located in the Clarence Moreton Basin, 222 km from the Port of Brisbane. Besides, the adjacent New England Highway connects the project site with Toowoomba for a distance of 77 km from where the heavy haulage rail system can transport coal for export through the Port of Brisbane.

Inferred Resource Estimate, Maryvale Project (Source: Company’s March 2019 Quarterly Report)

Western Australia

• Pilbara Craton (Darnell Hill, Bustlers’ Bore and Bea Bea Creek) Iron Projects, where the exploration licenses E08/2770-I (Darnell Hill), E46/1084-I (Bustler Bore) and E45/4619-I (Bea Bea Creek) are held 100% by company’s subsidiary Kaili Iron Pty Ltd (wholly owned).

Kaili is awaiting the receipt of budget estimation from the Mugarinya Community, for the company’s proposed Work Program within the Bea Bea Creek tenement. No field work was undertaken during the last quarter on either of the tenements. Besides, as the wet season is likely to impact field-based exploration, the next phase of work is planned for the June/September Quarter 2019.

• Yilgarn Craton (Gindalbie and Kookynie) Gold and Iron Projects, where the company’s subsidiary Kaili Gold Pty Ltd. 100% holds exploration licenses including E40/354 (8 Mile Dam), E31/1114-I (Jungle Hill), E31/1113 (Canegrass), E27/550 (Holey Dam) and E27/549 (Gindalbie dam).

Source: Company’s March 2019 Quarterly Activities Report

For the Canegrass and Holey Dam tenements, Kaili has finished planning a 400-hole drill program to test several gold structural/geochemical targets. The program involves a shallow (5 -15 m) grid-based Vacuum Drilling along E-W lines.

A heritage survey was also planned for the last week of April 2019 and the drilling was scheduled to commence in the first half of May 2019. The WA Department of Mines Industry Regulation and Safety (DMIRS) has approved the Program of Works.

• Halls Creek – (Black and Glidden, Carrington, Sandy Creek and Wild Dog) Cobalt/Gold Projects, where Kaili Iron Pty Ltd holds exploration licenses (100%) comprising E 08/5112, 5113,5114 and 5115. The four granted tenements are located within the NE-SW trending Lamboo Province comprising 4 tectonostratigraphic terranes – Western, Central and Eastern.

WA-based Southern Geoscience Consultants completed the acquisition and processing of all available data (airborne magnetic, radiometric, gravity and electromagnetic) for the four tenements and provided lithostructural interpretations. Meanwhile, Sydney-based Earth-AI merged all the available geochemical, geological and geophysical data to generate targets for field-based exploration expected to begin in the June quarter. Phase 1 exploration program will comprise helicopter supported surficial geochemical sampling and geological mapping of the 4 tenements.

During the March quarter, Kairi recorded cash outflows of AU$ 147K and AU$ 390K from operating and investing activities respectively. As at 31 March 2019, the net cash and cash equivalents stood at ~ AU$ 1.43 million.

KLR last traded at AU$0.036 (As at 15 October 2018).

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