Iris Metals Sharpens US Lithium Focus with Edison Success and Kookynie Gold Divestment
Iris Metals (ASX: IR1) has reported some of its strongest drilling results to date from the Edison project in South Dakota, while also advancing a strategic divestment of its Kookynie gold project in Western Australia.
The combined developments highlight the company’s increasing focus on establishing a US-based lithium supply chain, with gold assets now being monetised to fund growth in its core portfolio.
Chair Peter Marks said the divestment would allow Iris to concentrate on advancing its South Dakota lithium properties, while still giving shareholders exposure to future upside from ongoing exploration in the Kookynie district.
High-Grade Lithium at Edison
The Phase I diamond drilling program at Edison comprised 15 holes for 2,278 metres, targeting a network of spodumene-bearing pegmatites across the historic mining area.
New results included 2.95m at 2.76% lithium oxide from 95.3m and 6.65m at 3.30% lithium oxide from 54.6m, complementing earlier intersections such as 13.4m at 1.78% lithium oxide.
US operations president Matt Hartmann said the results confirmed Edison as one of the highest-grade lithium systems yet encountered in the Black Hills and would support a larger Phase II program aimed at resource definition.
Iris is currently defining the scope and schedule for this program to ensure priority targets and efficient execution.
Developing a ‘Hub and Spoke’ Model
The Edison results are central to the “hub and spoke” strategy Iris is chasing, under which multiple projects across its South Dakota portfolio would feed into a centralised processing hub.
All pegmatites intersected in the first drilling phase remain open at depth, highlighting significant potential for resource expansion and scalability.
The company is working towards completing a project study in early 2026, which it expects will demonstrate strong development economics and position it as a near-term supplier of critical minerals to the United States market.
At the same time, it is conducting due diligence on potential acquisitions in South Dakota to expand and strengthen its regional portfolio, targeting a comprehensive economic analysis in early 2026 with a view to establishing a multi-mine production unit.
Divestment of Kookynie Project
In parallel with the lithium progress, Iris has entered into a binding agreement to sell the Kookynie gold project to Arika Resources (ASX: ARI).
The divestment will deliver up to $535,000 in cash payments and 15 million Arika shares, with the shareholding structured to provide longer-term equity exposure as Arika advances exploration.
Mr Marks said the transaction delivers immediate non-dilutive funding to Iris while freeing the company to accelerate drilling, resource growth, and development across its South Dakota lithium assets.
Iris expects completion of the Kookynie sale within 45 days, subject to WA regulatory approvals.