Kaili Resources Limited announced completion of the IP (Induced Polarisation) survey at the Canegrass prospect F within the tenement E31/1113 in Western Australia. Following the results of the RC drilling program in March 2022 at Canegrass Prospect F, KLR completed the IP survey to test an area of low magnetics that corresponds to the results of elevated gold to 1 m at 3.96 g/t Au2 and likely also to be associated with silica and chlorite altered basalt. The IP survey was planned for a total of 7.8 line kms using six (6) EW lines to explore for deeper conductivity targets for future drilling beneath the March 2022 RC drilling.

Survey Specifications: The IP survey was conducted by Moombarriga Geoscience from November 13th to 25th, 2022. Equipment used included a SearchEx WB30 transmitter and a SmarTem 24 receiver system. Receiving electrodes were standard nonpolarising porous pots and transmitter electrodes were buried steel plates or stakes.

The survey consisted of six EW lines, each 1.3 km long. Line spacing was 100 m. The survey utilised a roll along dipoledipole (DDIP) configuration using 50 m transmitter dipoles and 16 x 50 m receiver dipoles. Station moves were 50 m. There is generally good agreement between the 2D and 3D inversion models for the Canegrass DDIP data.

This adds to the confidence that can be placed in the models. The resistivity data shows very conductive cover across the eastern half of the survey area. This cover has resistivity values less than 10 m and is around 50 m to 70 m thick.

The western half also has cover of around 50 m thickness although it is not as conductive with resistivity values of 20 to 50 m. Below the cover is resistive basement (> 100 m). The chargeability data maps an extensive NS trending chargeability high (1015 mV/V) along the western side of the survey area (centred on 389500E). The zone appears to be 200 m to 300 m wide, basically flat lying with a depth extent of around 50 m, and it sits beneath the conductive cover layer.

This is expected to be a stratigraphic or lithological response. There is a secondary NS trending chargeability high in the centre of the survey area across the three northern lines. It is located around 389800E at depths between 50 m and 150 m, again below the conductive cover layer.

The zone is strongest on line 2500N and 2600N (7 to 10 mV/V). The 2D inversion model for 2600N suggests a subvertical shape with potential for depth extent of 200 m to 250 m. This zone is directly along strike to the north from the existing drilling at Canegrass and is directly adjacent to a linear magnetic high. KLR will next carry out field traverses across the area of the IP survey to map the geology and regolith and use the information gained in conjunction with the results of the RC survey to plan the next round of drill testing within the Canegrass tenement.