Delta Lithium Limited (ASX: DLI) has reported strong results from the first stage of its four-stage exploration campaign at the Mt Ida Gold Project. Located in Western Australia’s rich Goldfields region, Mt Ida’s Baldock area continues to show promising high-grade gold intercepts, supporting the project’s growing resource base.
Mt Ida Project Area
In a strategic move, Delta is expanding the high-grade resource at Baldock, which currently stands at 4.8 million tonnes at 4.4 g/t for a total of 674,000 ounces. This initial drilling phase has yielded notable intercepts, including:
- 2 metres at 9.3 g/t Au from 83 metres in hole IDRD309
- 5 metres at 4.7 g/t Au from 38 metres in IDRD321, including 2 metres at 10.3 g/t Au from 38 metres
- 1 metre at 9.3 g/t Au from 140 metres in IDRD330.
Growing Gold Resource in High-Potential Region
The Mt Ida Project, approximately 225 kilometres from Kalgoorlie, has both open-pit and underground mining approvals, making it one of the highest-grade undeveloped deposits in Western Australia. Delta’s drilling efforts are targeting resource extensions along the 3-kilometre Baldock strike, while also investigating deeper mineralisation.
This drilling is part of a $5-6 million program aimed at lifting the resource size beyond one million ounces. The initial results have confirmed shallow, high-grade extensions south of the existing resource, a positive indicator for the potential of Mt Ida to stand alone as a gold asset. Stage 2, which includes further resource expansion at Baldock and Kestrel, is underway, and Stage 3 will tackle deeper extensions.
Strategic Review of Mt Ida
As Delta’s exploration and development activities continue, a Strategic Review of Mt Ida, led by Bell Potter Securities, is assessing options to maximise shareholder value. With gold prices showing resilience, Delta is considering monetisation pathways such as toll treatment, ore sales, or other strategic partnerships. Meanwhile, the company remains focused on its core lithium assets, especially at the Yinnetharra Lithium Project, which has shown substantial progress.
Managing Director James Croser highlighted the significance of Mt Ida’s gold resource, noting the company’s intent to build on its recent internal scoping study and complete a pre-feasibility study with an initial reserve statement expected by mid-2025. With geotechnical and metallurgical studies in progress, Delta is setting Mt Ida up for a substantial resource boost in the months ahead.
Advancing Development and Processing Studies
Delta is exploring a standalone processing facility for Mt Ida, which could process gold through a crushing, grinding, and carbon-in-leach (CIL) adsorption circuit, enhanced by gravity recovery of coarse gold. Additionally, metallurgical test work has delivered promising recovery rates, averaging over 92% for gold from the Baldock ore, positioning the company well as it advances project studies.
Cash Position and Outlook
Delta closed the September quarter with $76.4 million in cash, after significant investments in exploration and project development. With seven quarters of funding available at its current burn rate, Delta is well-capitalised to drive its growth strategy.
As Delta continues its extensive drilling at Mt Ida, investors will be watching closely for further high-grade discoveries and updates from the ongoing strategic review. With promising results and a solid financial position, the company appears to be on track to unlock Mt Ida’s potential while maintaining focus on its lithium projects.
