Delta Lithium Reports $8.6M Exploration Spend and $70.7M Cash Reserves

Robust Exploration Drives Resource Growth

Delta Lithium Limited (ASX: DLI) has delivered a compelling December quarter update, underscoring its dual focus on gold and lithium assets in Western Australia. The company’s flagship Mt Ida Project continues to impress with extensional drilling results that bolster the gold resource base, aiming to surpass the 1 million ounce milestone. Notably, assays from the initial stage of the four-stage drilling program revealed high-grade intercepts such as 2m at 9.8g/t Au and 5m at 4.7g/t Au, confirming mineralisation continuity and extensions beyond the current resource.

These results are pivotal as Mt Ida hosts one of the highest-grade undeveloped gold deposits in Western Australia, with the Baldock area alone accounting for 674,000 ounces at 4.4g/t Au. The ongoing drilling campaign, now progressing through stages two and three, targets deeper and higher-grade zones, with a fourth stage focusing on regional prospects within a 12km radius of the Baldock hub. This aggressive exploration strategy signals Delta’s commitment to establishing Mt Ida as a standalone gold operation.

Advancing Development and Permitting

Parallel to exploration, Delta is advancing development plans for a standalone processing plant and tailings storage facility at Mt Ida. The company anticipates submitting permitting applications in the March quarter, supported by metallurgical and geotechnical studies progressing towards definitive feasibility. GR Engineering’s engagement for plant design and cost studies further solidifies the pathway to production readiness.

Yinnetharra Lithium Project Momentum

On the lithium front, the Yinnetharra Project in the Gascoyne region continues to build momentum. The maiden Mineral Resource Estimate (MRE) released in December 2023 reported 25.7 million tonnes at 1.0% Li2O, with recent drilling at the Malinda prospect delivering encouraging lithium grades, including 22.6m at 2.16% Li2O. Metallurgical test work, including a 4-tonne pilot plant, has refined the processing flowsheet, and geotechnical studies are advancing to support a maiden reserve and resource upgrade.

Delta’s exploration teams remain active with regional mapping and surface sampling across the extensive 1,769 km2 tenure, while ongoing collaboration with Traditional Owners ensures heritage access and sustainable development practices.

Strategic Moves and Corporate Updates

Strategically, Delta completed the sale of its non-core Eureka gold project to Javelin Minerals for $1.5 million cash, $1.5 million in shares, and up to $1 million in contingent payments, allowing the company to sharpen its focus on core assets. Governance was bolstered by the appointment of Nader El Sayed as Chairman, succeeding Chris Ellison, while internal promotions strengthened the exploration leadership team.

Financially, Delta ended the quarter with a strong cash position of $70.7 million, reflecting prudent capital management amid $8.6 million spent on exploration and evaluation. The company’s balance sheet and operational discipline provide a solid foundation for ongoing resource growth and development activities.

Outlook

Looking ahead, Delta Lithium is poised to deliver further resource updates and feasibility milestones, with the March quarter expected to bring permitting submissions and additional assay results. The company’s dual-commodity strategy, combining high-grade gold and lithium assets, positions it well to capture value amid evolving market dynamics.