Junior explorer Iltani Resources (ASX: ILT) will use an $8 million royalty and equity investment by Queensland Critical Minerals and Battery Technology Fund (QCMBTF) to accelerate exploration across the Herberton mineral field in the state’s far north.
The company has commenced planning for the 2026 season, focusing on increased activity levels across silver-lead-zinc, antimony, and gold deposits at Orient, Isabel, Isabel Extended, Antimony Reward, and Boonmoo.
Link zone drill-out
High on the agenda will be a drill-out of the ‘link zone’ between the Orient West and East prospects to merge the resources and conduct further drilling to convert the project’s exploration target to a mineral resource.
The zone has been tested by only a few holes to date, and Iltani has prioritised further drilling to explore a potentially 750-metre untested strike extent.
VTEM drilling
Orient North, with its few prospecting pits and shallow workings, and the extensive area of stockwork mineralisation at Deadman Creek, will be subject to VTEM (versatile time-domain electromagnetic) drilling. Iltani will use the same technique to test for deeper targets across the project.
Iltani’s past outcrop sampling at Deadman Creek returned moderate-grade silver-indium-lead-zinc results, with more recent work at the southern part of the prospect returning up to 51.6 grams per tonne silver, 16.4g/t indium, 1.68% lead, and 0.23% zinc, associated with areas of stockwork veinlets.
Drill testing will also take place at Isabel, Isabel Extended, Boonmoo and Union Jack within the Herberton field which covers approximately 367 square kilometres.
Orient mining potential
Iltani has engaged contractors and consultants for an Orient mining concept study which will provide a high-level assessment of the mining potential and project configuration.
The study will estimate mineable inventories and open-cut extents based on the current mineral resource model of 62.5 million tonnes at 81.5 grams per tonne gold equivalent with a higher-grade core of 34.2Mt at 110.4g/t AgEq (for Orient West and East combined).
It will also aim to deliver a conceptual mine layout and production profile, including pit limits, waste dump, and tailings storage locations and key pieces of on-site infrastructure.
The study will provide a preliminary indicative economic scale of the Orient project and define a roadmap to advance towards scoping study level.
Doctorate study
Iltani will support a four-year doctorate study commencing in April, under a collaboration agreement with the University of Queensland, and with funding from the CSIRO.
The study is expected to further increase the company's understanding of the Orient deposit and will provide a model for exploration of the underexplored Boonmoo Sag Caldera area which contains several silver-base metal targets as well as the Boonmoo epithermal gold prospect.
New year exploration
Iltani managing director Donald Garner said the company was looking forward to kicking off the new season.
“When we get back on the ground in the new year, we expect to significantly increase the level of exploration activity at Orient and within the larger Herberton project,” he said.
“We are confident that we will build on this year’s success as we commence the next stage of exploration and development activities.”
Iltani finalised its 2025 exploration program at the onset of Queensland’s wet season in November.
Government grant
Iltani was awarded $8 million in funding from the Queensland Investment Corporation’s (QIC) QCMBTF in October to advance Orient’s development.
The deal will consist of $6 million of upfront, non-dilutive funding tied to royalties based on future product sales; and a $2 million equity investment via the issue of 5.4 million Iltani shares priced at $0.37 each.
It follows an extensive due diligence process by QCMBTF and reflects the government’s commitment to supporting Queensland’s resources projects.
“This agreement delivers long-term alignment with the government’s policy to position North Queensland as a key supplier of critical minerals used in the global economy and demonstrates its continued support for the Queensland mining sector,” Mr Garner said.
“This is an exciting time for all shareholders and stakeholders in Iltani, as we advance Australia’s largest known silver-indium project in a high silver price environment.”
