Kaili Resources Limited announced that a 7 hole drilling program for 630 m commences within the Canegrass tenement of the Gindalbie Gold Project in the Yilgarn Craton in Western Australia (WA). With inter-state border closures, restrictions faced by Company personnel to travel to WA and lack of readily available drillers, the Company has been fortunate in engaging Goldfields Drilling, an experienced Kalgoorlie based field crew and drilling team, to carry out the planned drilling. The drilling program is managed locally by geological consultancy BMGS.

A shallow (average drilling depth of 7 m) vacuum drilling was completed in 2019 across the Holey Dam and Canegrass tenements to look for gold geochemical signatures beneath transported overburden. The program was followed by deeper (average depth of 45 m) Aircore drilling in 2020 at 4 target prospects. Of these 4 targets Prospect CG_F (Canegrass Area F) has been chosen for the current RC drill testing using 3 drill lines.

Canegrass Prospect CG_F lies on the Emu Fault shown in which transgresses the Canegrass tenement from North to South. There is a group of several historical gold workings located to the north and just outside the Canegrass tenement (Gindalbie Workings) and they lie adjacent to the Emu Fault. The key gold mineralised intersections are shown in Figure 4 on an RTP Aeromagnetic Image.

A drill hole in the centre of the southernmost Aircore drilling program within CG_F intersected 4 m @ 0.16 g/t Au from 48-52 m, which included 1m @ 3.96 g/t Au (48-49 m) and 1m @ 0.88g/t (49-50 m) in Aircore Hole CGAC025 which was terminated at 63m down hole. shows the interpreted geology for CG_A showing the Emu Fault located at the boundary of mafic dominant rocks (basalt and dolerite) to the west and felsic dominant (felsic volcanics and intrusives) rocks to the east. The significant gold intersections are located within the mafic dominant rocks where spectral mineralogy carried out on the drill pulps by ALS Laboratory as part of the geochemical analyses highlighted a white mica (sericite) trend adjacent to the Emu Fault.

The program will comprise 3 lines of drilling with one line the same as the southern line of the Aircore Program of 2020 with two further drill lines 50 m to the north and 50 m to the south. As indicated, the RC drillholes will be angled towards 270 degrees as shown in drill section 6672200N.