Delta Lithium Unlocks Significant Gold Potential at Flagship Mt Ida Lithium Project

About Delta Lithium

Delta Lithium Limited (ASX: DLI) is an Australian exploration and development company focused on advancing its 100% owned Mt Ida Lithium Project in Western Australia’s Goldfields region towards production.

Led by an experienced management team, Delta Lithium is pursuing an accelerated development pathway to capitalize on strong lithium market demand. The company holds over 170 km2 of tenure within the prospective Mt Ida-Ularring greenstone belt, with multiple granted mining leases already in place.

In addition to the flagship Mt Ida Lithium Project, Delta Lithium's portfolio includes the high-grade Yinnetharra Lithium Project in the Gascoyne region of WA. With a strong balance sheet and clear growth strategy, the company is positioned as a premier new lithium developer in Australia.

Maiden Gold Resource Adds Significant Value at Mt Ida

Delta Lithium has announced a maiden JORC 2012 compliant mineral resource estimate for gold at its 100% owned Mt Ida Lithium Project near Menzies in WA’s Eastern Goldfields.

The total combined open pit and underground inferred and indicated resources stand at 3.1 Mt @ 4.1 g/t Au for 412,000 oz. Notably, 50% of the resource is in the higher confidence indicated category.

The maiden gold resource covers the Western Lodes and Kestrel prospects at Mt Ida, where Delta’s lithium exploration drilling has continually intercepted high-grade gold mineralisation.

Importantly, 85% of the defined gold resources are co-located within the existing lithium resource areas. This provides major potential to enhance project economics by supplementing lithium revenue streams.

Delta’s Managing Director James Croser commented on the significance of this substantial maiden gold resource at Mt Ida:

“The definition of Delta’s maiden gold resource at Mt Ida, predominantly within the existing Mining Leases, is a tremendous value add at the Mt Ida Lithium Project.”

“The key highlight of this MRE is the favourable location of the gold ore adjacent to the top of the Sister Sam lithium ore, potentially allowing mining to occur within the same planned pit shell whilst adding minimal incremental cost to the open pit operation.”

Global Resource Breakdown

The Mt Ida gold resources have been estimated above cut-off grades of 0.5 g/t Au for open pit and 1.5 g/t Au for potential underground mining.

At a 0.5 g/t Au cut-off, the total open pit inferred and indicated resources stand at 1.38 Mt @ 3.9 g/t Au for 174,000 oz.

At a 1.5 g/t Au cut-off, the total underground inferred and indicated resources are 1.71 Mt @ 4.3 g/t Au for 238,000 oz.

Combining these open pit and underground resources gives the global Mt Ida gold resource of 3.1 Mt @ 4.1 g/t Au for 412,000 oz.

The resource estimates have been prepared by independent mining consultants Snowden Optiro, in accordance with the JORC Code 2012.

Substantial Exploration Target Remains

Importantly, this maiden resource only covers a small portion of the defined gold mineralised zones at Mt Ida. Significant potential exists to substantially grow the current resource base with further drilling.

An additional exploration target of 1.5 to 2.5 Mt at a grade of 2 to 5 g/t Au has been estimated by Snowden Optiro across the project area outside of the existing resources.

This exploration target is based on drill intercepts and surface sampling results outside of the resource areas. The potential quantity and grade is conceptual in nature, but highlights the major upside at Mt Ida.

Delta is now progressing infill drilling with the goal of converting more of this exploration target into JORC compliant resources. Ongoing drilling will also test for further extensions of the known mineralised zones.

Shallow High-Grade Gold Discoveries

The maiden gold resource has confirmed two new shallow high-grade discoveries that could be amenable to open pit mining.

These are the Baldock 086 lode and the Meteor North 140 lode, both located adjacent to lithium resources.

The Baldock 086 lode hosts an open pit resource of 0.24 Mt @ 9 g/t Au for 70,000 oz. This high-grade shoot is near-surface and close to the top of the Sister Sam lithium deposit.

Meteor North 140 hosts an open pit resource of 0.6 Mt @ 4.7 g/t Au for 91,000 oz. This lode is also shallow and shows excellent continuity.

These high-grade gold shoots provide prime targets for potential open pit mining in the early stages of development. Extracting this gold ore is expected to generate strong cash flows for the Mt Ida project.

Resource Upside from Ongoing Drilling

Delta’s ongoing resource definition and exploratory drilling continues to deliver outstanding high-grade gold intercepts at Mt Ida.

Recent significant results not yet incorporated into the resource model include:

• 5m @ 9.9 g/t Au from 52m in hole IDRD260
• 7m @ 10 g/t Au from 50m in IDRD269
• 8m @ 2.3 g/t Au from 40m in IDRD282
• 1m @ 25.3 g/t Au from 81m in IDRD266

These impressive intercepts showcase the potential to significantly expand the current open pit resources with further close-spaced drilling.

Multiple other assay results above 10 g/t Au have been recorded beyond the limits of the current resources. Follow-up drilling will aim to extend the known high-grade shoots down-dip and along strike.

Significant Production History

The Mt Ida area has an extensive history of high-grade gold mining dating back to the 1890s. Historic production records from the Western Lodes are approximately 265,000 oz at a grade of 16.3 g/t Au.

This production was likely based on mining much higher grade underground ore. However, it confirms the presence of extensive high-grade mineralisation that could be targeted in future.

The Mt Ida Project covers 25 historic open pits and underground gold workings. Delta’s drilling to date has demonstrated that substantial mineralisation remains untested surrounding and beneath the historic mines.

Gold Complements Flagship Lithium Development

The delineation of over 400,000 oz of gold resources at Mt Ida is a major value-add for Delta Lithium’s flagship lithium project.

With lithium and gold prices largely uncorrelated, the company now has significant leverage to the prices of two key metals in strong demand.

The locations of the gold resources adjacent to lithium deposits is ideal, as open pit gold ore can potentially be mined in tandem with lithium. This would provide early cash flow whilst keeping incremental mining costs to a minimum.

Delta has multiple options for monetising the gold, including direct shipping of ore to third party processing plants in the region or installing a CIL gold processing circuit at Mt Ida.

The company is also assessing the potential to produce a gold concentrate on-site at Mt Ida, for sale to domestic refineries. Further metallurgical studies are underway.

In summary, the maiden gold resource has substantially increased the value proposition of Delta’s Mt Ida Lithium Project. The company is now in a unique position amongst its peers with leverage to both the lithium and gold markets.

Near-Term Development Pathway

Delta Lithium is focused on fast-tracking development at Mt Ida, with the aim of commencing mining operations within 12-18 months.

The project holds significant advantages including granted mining leases, excellent surrounding infrastructure and strong community support.

A mining approval submission for early open pit works is currently under assessment. This covers areas hosting the shallow high-grade gold resources.

Approval of this initial submission would enable site establishment works and pre-strip mining of the gold and lithium open pits to commence.

Infill resource drilling is well underway, along with additional work to support feasibility studies and mine planning. Ongoing metallurgical and geotechnical studies will feed into the DFS.

Conclusion

Delta Lithium’s maiden 400,000 oz gold resource defines significant upside at the company’s flagship Mt Ida Lithium Project. The location of these gold deposits adjacent to lithium resources is ideal for low-cost open pit mining.

Extraction of shallow high-grade gold ore early in the mine life has potential to generate strong cash flow, enhancing project returns.

Ongoing drilling continues to deliver outstanding results, showcasing potential for substantial growth in the gold resources.

With lithium and gold resources, Delta Lithium now has clear exposure to two commodities with strong demand fundamentals and uncorrelated pricing.

Delta remains on track to fast-track development at Mt Ida, with the aim of commencing mining operations within the next 18 months to capitalize on current strong lithium prices.

The maiden gold resource cements Mt Ida’s status as a Tier-1 lithium project in the global context. Investors have exposure to a unique multi-commodity development opportunity.