Delta Lithium demerging Mt Ida after upgrading resources to 1.1Moz

Delta Lithium is demerging its Mt Ida gold project after boosting resources by 46% to 1.1Moz.

Delta Lithium moving to demerge its Mt Ida gold project into a new ASX-listed company. Pic: Getty Images

Special Report: Delta Lithium has paired a 46% increase in contained gold resources at its Mt Ida project in WA’s Eastern Goldfields with a decision to demerge its gold assets.

• Delta Lithium upgrades contained gold resource at Mt Ida by 46% to 1.1Moz
• Project to be demerged into new ASX-listed company Ballard Mining
• Company to remain exposed to gold through shareholding in new company

The updated resource of 10.3Mt grading 3.33g/t for 1.1Moz of contained gold was prepared by external consultant Snowden Optiro.

It is spread out over six deposits with the vast majority – 930,000oz at 4.12g/t gold – sitting within the Baldock deposit that’s already covered by a mining approval for open pit and underground operations, making it an immediate target for a mining operation.

Delta Lithium (ASX:DLI)also updated resources at the Kestral deposit to 53,000oz at 1.7g/t gold and defined maiden resources for:

• Bombay – 740,000t at 1.4g/t for 33,000oz contained gold
• West Knell – 420,000t at 2.9g/t for 40,000oz; and
• Jupiter – 140,000t at 2.3g/t for 11,000oz.

These additional resources provide possible mining fronts that can feed into a potential future processing facility at Baldock.

DLI has submitted a works approval application for a processing plant with capacity of up to 1.5Mtpa and tailings storage facility.

The gold resources at Mt Ida. Pic: Delta Lithium

Gold demerger

The Mt Ida resource upgrade takes the gold project past the magic million ounce mark, often the point at which banks and financiers take it seriously.

This provides a solid foundation for DLI to advance Mt Ida towards standalone production via a demerger into a separate ASX-listed vehicle named Ballard Mining.

Doing so will not only preserve the company’s balance sheet for lithium exploration at the Yinnetharra and Mt Ida projects but also allow Ballard Mining and Mt Ida gold project to stand on their own considerable merits without investors having to consider lithium in their equations.

Funds raised through an initial public offering will enable Ballard to build further on the strong position the Mt Ida gold project already holds by advancing a definitive feasibility study and completing infill and exploration drilling.

This is aimed at allowing Ballard to make a final investment decision on Mt Ida.

DLI will retain exposure to any upside in this gold exploration and development activity through a significant shareholding in Ballard.

In-principle approval for the demerger has been received from the ASX and the company plans to put the proposal to its shareholders for approval whilst preparing an IPO prospectus for Ballard Mining targeting a mid-2025 listing.

Crystallising value

The resource upgrade and demerger plan is the culmination of 12 months of diligent work DLI has poured into the Mt Ida gold project, which has turned it into what managing director James Croser described as “one of the very few, high-grade undeveloped gold projects in WA in excess of 1Moz”.

He added that Baldock’s resource of 930,000oz could standalone in a single operation scenario across multiple pits and underground lodes along the current 3km strike while the regional deposits could supplement production to support the base load mining scenario.

“Along with the advanced permitting status there is now a genuine pathway to production,” Croser said. “The new target for Mt Ida is to complete a large infill drill out at Baldock and continue with further exploration on the wider tenure, and seek to deliver DFS level confidence, which will ultimately support a final investment decision.”

“Now is the time for Delta to separate our commodities and crystalise the value we have created at Mt Ida. 

“The Delta board of directors has decided that the best way to deliver value for our shareholders is via a fit for purpose gold vehicle with a new register of investors who wish to invest purely in an exciting gold development story. 

“Delta will retain a significant shareholding in the new gold company, Ballard Mining. 

“It is intended that current Delta shareholders will have the opportunity to participate in the initial public offering of Ballard Mining via a priority offer and an in-specie distribution of shares in Ballard Mining, subject to approval by Delta’s shareholders.”

He added that DLI would retain 100% ownership of all other mineral rights besides the gold, including the current Mt Ida lithium resource of 14.6Mt at 1.2% Li2O including an indicated resource of 7.8Mt at 1.3% Li2O, and will be able to leverage any potential shared capital infrastructure, such as underground decline development and surface facilities.

The company has not been standing still on the lithium front with the company in late April 2025 executing a binding agreement to acquire the Mortimer Hills project in WA’s Gascoyne region from Zeus Resources (ASX:ZEU).

This adds 28km2 of highly prospective yet underexplored tenure to DLI’s Yinnetharra lithium and tantalum project, providing several compelling targets for immediate exploration that could support resource growth and value-accretion for future studies.

Yinnetharra was itself the subject of a resource update in late March 2025 that increased high confidence indicated lithium resources by 140% to 16.1Mt at 1% Li2O at the Malinda prospect while defining an additional tantalum resource of 17.5Mt at 136ppm tantalum in close proximity.

Next steps

DLI will now move to demerge the Mt Ida gold project into Ballard Mining, which will seek admission to the ASX.

Ballard will then move to complete an extensive infill drilling program to increase confidence in the existing resource while converting additional resources to the higher confidence indicated category.

Additionally, Ballard will start the process of converting exploration leases into mining leases for regional resources.

Next up is the finalisation of metallurgical and geotechnical studies to a DFS level, the release of a maiden ore reserve and feasibility study by H1 2026.

Ballard will also systematically test the identified regional prospects to further grow its resource base.

This article was developed in collaboration with Delta Lithium, a Stockhead advertiser at the time of publishing. 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as Delta Lithium demerging Mt Ida after upgrading resources to 1.1Moz