Delta’s gold spin-out Ballard Mining makes ASX debut

Following a $30 million raise, Ballard Mining begins ASX trading with plans to undertake 130,000m of drilling in gold quest at Mt Ida.

Ballard Mining lists on the ASX following a $30m IPO to fuel a 130,000m drilling campaign at Mt Ida. Pic: Getty Images

Special Report: Ballard Mining has kicked off trading on the ASX after raising $30m to drive a 130,000m drilling campaign at Mt Ida in WA’s Goldfields, tapping into 26km of underexplored greenstones along gold-rich structures known for major finds.

• Ballard Mining lists on the ASX under ticker ‘BMI’
• Exploration and drilling is planned to fast-track the potential mid-tier Mt Ida gold mine to an investment decision 
• The company received strong institutional backing during the IPO 

The plan is to explore and develop the 1.1Moz Mt Ida project with the Baldock deposit – a 930,000oz at 4.1g/t orebody – the centrepiece of Ballard’s endeavours, with infill drilling to underpin a feasibility study and reserve estimate. 

Ballard, named after Lake Ballard – a landmark near the Mt Ida asset – west of the WA Goldfields towns of Menzies and Leonora, believes Baldock has what it takes to become a significant gold project of mid-tier scale.

The landholding hosts six existing gold deposits with resources are open. Baldock alone will see around 80,000m of infill and extensional drilling, with the goal of establishing a reserve to underpin the initial years of a projected decade-long operation.

Another 50,000m of drilling is set aside for pure exploration, chasing 20 walk-up targets already mapped out.

Strong institutional support 

Delta Lithium (ASX:DLI) made the decision to divest Mt Ida into a new, standalone gold-focused exploration company given its scale. 

Ballard Mining’s (ASX:BM1) board – backed by previous De Grey Mining (ASX:DEG) chairman Simon Lill, former Calidus Resources COO Paul Brennan and ex-Gold Fields Australasian boss Stuart Mathews – believes separating Delta’s existing lithium projects and the gold asset will drive superior value for shareholders in both companies. 

In a previous interview with Stockhead, Brennan said the company was surprised by the amount of institutional support the company received during the IPO. 

The $30m raised comes in the form of a priority $5m raise to existing DLI investors, which will bring MinRes and Gina Rinehart’s Hancock Prospecting into the fold as foundation shareholders, along with a $25m public raising, both oversubscribed. 

Delta will maintain a ~46% stake, bolstering Ballard’s balance sheet, and after an in-specie distribution to DLI shareholders, it will boast an EV of just $57m or $52/oz. 

Gold price cycle best positions Ballard 

Just 6km to the south is the Mt Ida gold project owned by private Aurenne Group, which contains a 200-person camp and 1.5Mtpa CiL plant.

Around 100km to the south is Ora Banda, which under new management has become a $1.4bn gold miner at its Davyhurst gold mine, at last word on track to produce 95,000oz last financial year.

With gold prices circling all-time highs, sitting around $5,000/oz and 38.15% higher than a year ago, Ballard reckons it’s perfectly placed to launch into early success, underpinned by a strong foundation of 1.1Moz gold and specialised management team. 

This article was developed in collaboration with Ballard Mining, 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.