Develop Global Targets June FID After Strong Pioneer Dome Lithium Drilling

Pioneer Dome Delivers High-Grade Lithium Assays

Develop Global Limited (ASX:DVP) has unveiled infill drilling results from its Pioneer Dome lithium project in Western Australia that not only exceed the existing resource model but also confirm the deposit’s suitability for Direct Shipping Ore (DSO). The standout assays include intervals such as 32 metres at 1.71% Li2O and 52ppm tantalum from 64 metres, and 37 metres at 1.62% Li2O and 51ppm tantalum from 64 metres, underscoring the deposit’s high-grade, consistent lithium-tantalum mineralisation.

These results come from a 20,000-metre grade control drilling program, completed with two rigs, designed to underpin detailed mine planning and provide bulk samples for offtake parties. The assays demonstrate strong continuity and large geometry of mineralisation, with true widths estimated at around 90%, suggesting potential upside to the current resource grade and pricing for the DSO product.

Final Investment Decision and Development Timeline

With all key regulatory approvals and permits secured, Develop is fast-tracking Pioneer Dome towards a Final Investment Decision (FID) targeted for June 2026. The FID will be based on mining approximately 850,000 tonnes of DSO from an open pit, with a strip ratio of about 6.5:1, and aims to deliver first DSO sales by the December 2026 quarter. Planning is also underway to extend production through underground mining beyond the initial open pit phase.

The company is progressing competitive tenders for open pit mining, crushing, and haulage services, with major contract awards expected shortly after FID. Develop intends to operate under a contractor model, minimising upfront capital expenditure and maintaining a flexible, capital-light cost structure. This approach aligns with the company’s broader strategy of nimble production responsive to market conditions, as seen in their other mining services contracts such as the A$274m underground contract secured recently.

Offtake and Financing Discussions Advance

Develop has attracted strong interest from global players across the lithium battery supply chain, including converters, battery manufacturers, cathode producers, automotive OEMs, and commodity traders. The company has shortlisted potential offtake partners who are conducting final due diligence ahead of binding agreements expected to coincide with the FID.

Indicative pricing for the DSO product, based on non-binding proposals and current lithium carbonate spot prices of US$27,500 per tonne CIF China, ranges from US$362 to US$430 per tonne for a 1.2% Li2O product. The offtake agreements are expected to include a floating price formula with a floor price mechanism, providing Develop with upside participation in lithium prices while limiting downside risk. The project finance debt facility to fund the A$35–40 million pre-production capital cost is anticipated to be secured with the preferred offtake partner.

Strategic Positioning Amid Tightening Lithium Supply

Pioneer Dome is positioned to fill a growing market gap for high-quality, reliable DSO material into China, where supply is currently dominated by smaller African operations with variable product quality. The project’s location in a stable jurisdiction and its consistent, high-grade spodumene product make it a compelling proposition amid surging lithium demand and pricing.

Develop’s recent operational momentum, including steady-state production at Woodlawn and significant contract wins, underpins its capacity to execute on Pioneer Dome’s development rapidly and efficiently. The company’s integrated approach across mining services and project development is reflected in its advancing technical planning and operational readiness, with a dedicated owner’s team already in place to oversee execution.