Killi Resources Limited to provide an update on its drill programs at the West Tanami Project in the Kimberley region of Western Australia. As part of this program the Company completed a shallow-angled 890.4m stratigraphic diamond hole at the Fox prospect, (previously Raven prospect) at the northern end of the project, to delineate the stratigraphic sequence within the Tanami Orogen. The hole was drilled in partnership with the Department of Mining Industry Regulation and Safety, in which the WA government contributed $150,000 towards completion of the hole, as part of the Exploration Incentive Scheme.

The geology intersected in the core showed an increased presence of intrusive mafic units, in particular a gabbro which exhibited significant localised copper sulphide mineralisation. The sulphide zone spans 10 metres, with increasing amounts of pyrrhotite and chalcopyrite, ranging from disseminated to massive. All reported sulphide intersections are based on visual observations.

TMDD0001 was drilled to a total depth of 890m, at a shallow angle (-55°) to cover as much of the stratigraphy as possible with the sediments interpreted as sub-vertical isoclinal folds at the Fox prospect. Of significance at approximately 840m depth (560m vertical depth), a gabbro (mafic) unit with distinctly high sulphide content was intersected. Sulphides were observed from approximately 834m ­ 840.8m ranging from trace to approximately 30% of the rock mass increasing with depth.

From 840.8m ­ 841.5m semi-massive and massive sulphides were intersected, where classification of massive sulphides is based on sulphide content >80% of the rock mass. The dominant sulphides observed were pyrrhotite, chalcopyrite and pyrite, potentially representative of a magmatic base metal system. The pyrrhotite and chalcopyrite appear to be associated with the gabbro unit, with pyrite present in the sediments as well as the gabbro.

At this point the pyrite is believed to be part of a hydrothermal overprint as it is seen throughout the hole and associated with varying degrees of quartz veining. Previous work and mapping completed by the Geological Survey of Western Australia has only identified sediments with no interpretation of mafic units at the prospect. Dolerites have been loosely documented in the region to intrude the sedimentary sequence, however there is very limited drilling in which they have been intersected and limited analysis performed.

Further review of historical reports indicates there has been no prior exploration for magmatic sulphide mineralisation in the Tanami Province, which presents a unique opportunity for Killi to explore. The Company plans to further evaluate the drill core with the assistance of experienced geologists of the Tanami region, and those with base metal experience. Geological work will continue with further analysis to establish timing relationships, alteration assemblages and metamorphic facies of the gabbro and surrounding sediments.

Aircore drilling at Fox, saw the completion of 30 holes on two wide-spaced drill lines, 1.4km apart. Samples were taken as 4m composites downhole and have been sent for analysis via fire assay for gold. Given the development with the results of the diamond hole, the Company plans to complete multi-element analysis on the downhole samples as well.

Logging from the aircore program has also recorded and confirmed mafic units along the lines completed. Diamond hole TMDD0001 was designed to cross the stratigraphy responsible for the gold mineralization seen 120kms along strike at the Callie Gold Mine. The drill hole covered an extensive sedimentary sequence at the top of the hole, which was intruded by thin (3 ­ 5m) intervals of mafics, and cross-cutting quartz veins.

In the upper part of the hole there were multiple zones of interest displaying cross-cutting quartz veins within a sandstone, adjacent to a sedimentary-mafic contact. A particularly interesting quartz-pyrite vein was intersected at approximately 218m with a strong silica and hematite alteration halo, and at 173m there was a folded and sheared shale unit with quartz veining and silica/feldspar alteration, which is characteristic of gold mineralisation styles in the region. The stratigraphy of the Tanami region has been difficult to delineate historically, due to the poor exposure at surface, and lack of available data, such as diamond core.

Exploration has been intermittent from the early 1900's until the mid-1980's owing to the remoteness and cover and has focused on sediment hosted mineralisation, specifically for uranium, rare earth elements and gold. The Company plans to actively continue exploring the base metal potential of the project, from multiple fronts. A downhole geophysical survey is planned to ascertain if there are any adjacent sulphide bodies in proximity to the diamond drill hole.

Review of historical work will continue with a wider view to include exploration for a potential of an orthomagmatic sulphide system. Processing of the airborne magnetic and radiometric data from the survey is underway, with results to feed into the geological understanding of the project and to assist with target generation. Results remain pending for air core and reverse circulation drilling, where the pulps will be further analysed for base metals and path finder elements to further geological understanding.