Nov 14, 2024

Delta Lithium Hits 5m @ 4.7g/t Au at Mt Ida Gold Project, Western Australia

Introduction:

Delta Lithium (ASX: DLI) (Market Cap: $150M | Last Close: $0.22 | Cash: $76M ) has reported gold assay results from its Mt Ida Gold Project in Western Australia's Goldfields region, highlighted by 5m @ 4.7g/t Au from 38m including 2m @ 10.3g/t Au from 38m.

Drill Results:

5m @ 4.7g/t Au from 38m (including 2m @ 10.3g/t Au from 38m) (IDRD321)
2m @ 9.3g/t Au from 83m (IDRD309)
1m @ 9.3g/t Au from 140m (IDRD330)
1m @ 8.8g/t Au from 308m (IDRD327)
1m @ 6.5g/t Au from 197m (IDRD310)‍
2m @ 4.1g/t Au from 31m (IDRD352)

Project Overview:

The Mt Ida Gold Project is located approximately 240km north of Kalgoorlie in Western Australia. The project area resides on granted mining leases and is fully permitted for commencement of open pit and underground mining at the Baldock deposit. The current Baldock gold resource stands at 4.8Mt @ 4.4g/t Au for 674,000 oz.

Delta Lithium's Mt Ida Project represents a "shovel ready" gold development opportunity in a Tier 1 mining jurisdiction. The project benefits from existing infrastructure and proximity to established mining centers in the Western Australian Goldfields region.

Program Details:

The company is undertaking a four-stage drill program consisting of approximately 35-40,000 drill meters including both RC and diamond drilling at Baldock, followed by regional RC drilling across the wider Mt Ida tenure including Kestrel and Golden Vale prospects. The current program is focused on expanding the existing Baldock gold resource through extensional drilling. Recent results have confirmed shallow, high-grade continuous mineralization 300m south of the Baldock 086 resource.

Understanding These Results:

The reported intercepts represent extensions to known mineralization both along strike and at depth from the current Baldock resource. The high-grade nature of several intercepts, particularly the 5m @ 4.7g/t Au including 2m @ 10.3g/t Au from shallow depths, indicates potential for significant mineralization outside the existing resource envelope.

The presence of multiple high-grade intercepts, including 1m @ 9.3g/t Au from 140m and 1m @ 8.8g/t Au from 308m, suggests the potential for multiple mining scenarios as the resource is further defined. The shallow nature of some intercepts, such as 2m @ 4.1g/t Au from 31m, could positively impact future strip ratios in an open pit mining scenario.

Management Commentary:

James Croser, Managing Director of Delta Lithium, stated:

“Stage 1 results from this drilling campaign have delivered positive, shallow extensions, north and south of the current resources at Baldock, with that resource remaining open at the surface extents. These highlighted holes are expected to represent modest additions to the current resource model.”

“We will now shift our focus towards advancing Stage 2 and 3 of the drilling campaign, targeting deeper mineralisation that is of higher-grade material proximal to the anticipated mining areas at Baldock. The current program is expected to break over the Christmas period and recommence in early January with an expected completion in the first quarter of calendar year 2025 after the planned regional phase.”

“The team’s exploration success throughout the year has provided us the opportunity to complete further drilling at Mt Ida concurrent with our strategic review. I am very proud of the tireless effort by our exploration team and look forward to providing further updates to the market as we continue to execute on our key objective of growing the existing resource.”

Next Steps & Catalysts:

Delta Lithium plans to shift focus towards advancing Stage 2 and 3 of the drilling campaign, targeting deeper mineralization that is of higher-grade material proximal to the anticipated mining areas at Baldock. The current program is expected to break over the Christmas period and recommence in early January with an expected completion in the first quarter of calendar year 2025 after the planned regional phase.

Upon completion of Stages 2-4, the company plans to release an updated gold Mineral Resource Estimate for the Mt Ida Project. Project development studies are progressing, with a focus on submitting a Works Approval for a Processing Plant & Tails Storage Facility and completing a PFS-level underground geotechnical assessment. The company aims to have all modifying factors at or above PFS level to support the release of a maiden reserve statement by mid-2025.

Commodity Outlook:

Gold serves multiple markets, including investment assets, central bank reserves, jewellery manufacturing and industrial applications in electronics. Currently trading at US$2,573/oz (November 14, 2024), the metal has experienced record highs in 2024 despite recent volatility linked to U.S. political shifts and Federal Reserve policy expectations.

The gold market remains robust, with strong prices supporting development opportunities for advanced-stage projects. The Mt Ida Gold Project's location in the established Western Australian Goldfields region provides strategic advantages in terms of infrastructure, skilled workforce, and regulatory environment for mine development.

Conclusion:

The latest results from Delta Lithium's Mt Ida Gold Project demonstrate potential to expand the current Baldock resource through both shallow and deeper extensions. With an ongoing strategic review and continued exploration success, the project is progressing towards key development milestones in 2025, including an updated resource estimate and potential maiden reserve statement.

Sources:

DLI Drill Result Announcement

Additional Figures:

Australia

ASX

Manganese

Nov 14, 2024