Delta Lithium Unveils 46% Gold Resource Surge, Spins Off Ballard Mining

Significant Resource Upgrade at Mt Ida

Delta Lithium Limited (ASX: DLI) has delivered a major milestone for its Mt Ida Gold Project in Western Australia's Eastern Goldfields, announcing a 46% increase in its Mineral Resource Estimate (MRE). The updated resource now stands at 10.3 million tonnes grading 3.33 grams per tonne gold, equating to approximately 1.1 million ounces of contained gold. This upgrade, prepared by independent consultants Snowden Optiro, reflects both extensive recent drilling and integration of historical data, underscoring the project's scale and potential.

The Baldock deposit, the project's flagship resource, saw a 38% increase in contained gold to 930,000 ounces at 4.12 g/t Au, reinforcing its status as one of Western Australia's highest-grade undeveloped gold projects. Additionally, maiden MREs were established at the Bombay (33,000 ounces), West Knell (40,000 ounces), and Jupiter (53,000 ounces) prospects, expanding the project's footprint and offering multiple potential mining fronts.

Strategic Demerger to Unlock Value

In a strategic move to crystallise value and streamline operations, Delta has commenced the demerger of its Mt Ida gold assets into a new corporate entity, Ballard Mining Limited. This new vehicle will seek admission to the ASX and aims to raise capital to fund a Definitive Feasibility Study (DFS), infill drilling, and further exploration. Delta will retain a significant shareholding in Ballard Mining, maintaining exposure to the gold upside while focusing its balance sheet and efforts on lithium exploration and development at Mt Ida and the Yinnetharra Project.

Ballard Mining, named after the nearby Lake Ballard, will hold the gold assets through its wholly owned subsidiary Mt Ida AU Pty Ltd. The demerger is designed to attract investors specifically interested in the gold development story, with Delta shareholders expected to have priority access to Ballard's initial public offering (IPO) and an in-specie distribution of shares, subject to shareholder approval.

Pathway to Production and Exploration Upside

Mining approvals for both open pit and underground operations at Mt Ida have been granted, with works approval applications underway for a processing plant and tailings storage facility. The project is well positioned with 93% of resources on granted mining leases, providing a clear pathway to production.

Delta plans an 85,000-metre infill drilling program at Baldock to upgrade resource confidence from Inferred to Indicated, supporting the release of a maiden Ore Reserve and advancing the DFS targeted for the first half of 2026. The broader Mt Ida tenure hosts multiple regional targets and lodes open at depth, indicating significant exploration upside beyond the current resource base.

Geological and Metallurgical Confidence

The Mt Ida Project's gold mineralisation is structurally complex, hosted within shear zones associated with quartz veining and sulphide development. Extensive metallurgical testwork has demonstrated consistent gold recoveries exceeding 90% using a straightforward gravity and carbon-in-leach process, supporting the project's economic viability.

The updated resource incorporates 218 new drill holes totaling 44,500 metres, complementing historical drilling data. The resource classification upgrade, particularly at Baldock, reflects improved geological confidence and continuity, essential for advancing feasibility studies and mine planning.

Balancing Lithium and Gold Ambitions

Delta's decision to separate its gold and lithium assets through the Ballard Mining demerger allows the company to maintain a strong balance sheet focused on lithium development while unlocking value from its gold resources. The coexistence of gold and lithium mineralisation at Mt Ida offers potential operational synergies, including shared infrastructure, which could enhance project economics for both commodities.