Iltani Resources (ASX: ILT) reports up to 1,478 g/t silver equivalent at Orient West amid resource estimate push

How strong are Iltani Resources’ latest drill results from Orient West and what do they mean for its maiden resource estimate?

Iltani Resources Limited (ASX: ILT) released a high-impact exploration update on June 16, 2025, confirming several high-grade silver and indium intersections at its Orient West site in North Queensland. The announcement, covering reverse circulation drillholes ORR078 to ORR085, comes as the Brisbane-based critical minerals explorer advances toward its maiden JORC-compliant Mineral Resource Estimate for the Orient Silver-Indium Project. Despite the technical strength of these results, Iltani Resources’ share price fell 6.38% on the Australian Securities Exchange, closing at AUD 0.22 with a one-year return of -26.67%.

The most notable assays include 1 metre at 1,478.3 grams per tonne (g/t) silver equivalent (Ag Eq.) in hole ORR084, and 1 metre at 1,334.8 g/t Ag Eq. in ORR082. Both intercepts are located within broader zones of high-grade polymetallic mineralisation, found at open-pittable depths of less than 150 metres from surface. These findings are poised to underpin the resource model for what Iltani Resources has described as Australia’s highest-grade known silver-indium deposit.

What types of mineralisation were intercepted during Iltani Resources’ latest Orient West drill program?

The drillholes reported in this tranche form part of Iltani Resources’ JORC Infill program targeting the high-grade core of the Orient West system. ORR084, situated at the southern extent of the high-grade zone, returned a standout intercept of 16 metres at 214.2 g/t Ag Eq., including 1 metre at 1,478.3 g/t Ag Eq., which comprised 599 g/t silver, 76.3 g/t indium, 14.09% lead, and 6.85% zinc. ORR082 also confirmed multiple intercepts of high-grade mineralisation, with a particularly rich 1 metre interval grading 153.6 g/t silver, 568.3 g/t indium, 2.94% lead, and 16.36% zinc.

Broad zones of moderate-grade mineralisation were also observed in ORR080, which returned 86 metres at 53.6 g/t Ag Eq. from 8 metres downhole. Within this sequence, narrower sections showed enhanced grades, such as 2 metres at 168.7 g/t Ag Eq. and 8 metres at 110.7 g/t Ag Eq. The combination of wide intercepts with discrete high-grade lenses provides geological confidence in both lateral continuity and vertical depth potential of the deposit.

Drillholes ORR078 and ORR083 demonstrated continuity of mineralisation along strike and down dip. ORR078 intercepted 45 metres at 75.6 g/t Ag Eq., including 1 metre at 542.7 g/t Ag Eq. with 50.6 g/t silver, 301.6 g/t indium, and 6.73% zinc—results that highlight the underground mining potential of deeper zones.

How does Orient West fit into Iltani Resources’ broader strategy in critical raw materials for clean energy?

Iltani Resources has positioned itself as a critical minerals exploration firm with projects in Queensland and Tasmania focused on metals essential for clean energy transitions. These include silver, indium, lead, zinc, and copper—all of which play a key role in electronics, solar technologies, and battery systems. The Orient Silver-Indium Project, part of the larger Herberton Project, is the company’s flagship asset and is located on wholly owned exploration permit EPM 27223 near Herberton, Queensland.

Initial drilling at Orient West has outlined a conceptual Exploration Target of 74–100 million tonnes at 55–65 g/t Ag Eq., with a high-grade core of 20–24 million tonnes at 110–120 g/t Ag Eq. The latest RC infill program focused on the 900m x 350m high-grade core area, with drilling on a 100m x 50m grid to support a maiden Inferred Resource classification. According to the company, mineralisation remains open at depth and along strike, with further discovery upside to be tested once infill drilling concludes.

Beyond Orient West, Iltani Resources is concurrently advancing drilling at Orient East, with a JORC resource estimate expected by September 2025. Additional prospects such as Orient North, Deadman Creek, and other geophysical targets identified through VTEM surveys are also expected to feed into a broader pipeline of critical mineral development.

What has been the institutional response to Iltani Resources’ assay results and how is market sentiment evolving?

Market reaction to the June 16 announcement was muted despite the quality of the assay results. Iltani Resources’ stock dropped by 6.38% to AUD 0.22, bringing its 12-month decline to nearly 27%. This disconnect between exploration success and market performance may reflect broader investor fatigue across the junior mining sector, low liquidity, and limited institutional coverage.

With a market capitalisation of AUD 11.6 million and trading volumes of fewer than 20,000 shares per day, Iltani Resources ranks 1,709 out of 2,322 on the ASX, and 651 out of 1,051 within the basic materials sector. The stock’s low PE ratio of zero reflects its pre-revenue status, but also underscores the speculative nature of early-stage exploration plays in the critical minerals segment.

Nonetheless, exploration-focused retail investors and small-cap forums have been tracking Iltani Resources closely. Sentiment within these communities remains cautiously optimistic, hinging largely on the forthcoming resource estimate for Orient West and the confirmation of extension zones from VTEM modelling.

What milestones and exploration catalysts should investors watch for in the second half of 2025?

The next major milestone is the completion and publication of the Orient West JORC-compliant Mineral Resource Estimate, which Iltani Resources has committed to delivering by the end of July 2025. This will be followed by resource modelling at Orient East, with results expected in September. Meanwhile, modelling of the VTEM geophysical survey is ongoing, aimed at generating drill targets along strike and at depth beyond the current infill zones.

Pending assay results from ORR086 to ORR095 and diamond drillholes ORD002 and ORD003 could also contribute additional tonnage and grade insights, particularly for underground mining scenarios. Exploration is also anticipated to resume at regional satellite prospects once the resource drilling at Orient is completed, with potential for greenfield discoveries across untested targets.

If successful, these developments could elevate the Orient Project from an exploration narrative to a viable development story, possibly triggering institutional re-rating or strategic interest from mid-tier producers seeking indium or polymetallic exposure in Australia.