Delta Lithium (ASX:DLI) outlined its strategy to build toward an operating mine while highlighting what it described as a strong balance sheet position, exploration and study work across its Western Australian portfolio, and the emerging potential of rubidium as a co-product at its Mount Ida project.
Capital structure and shareholder support
Speaking at an event in Fremantle, Managing Director James Croser said the company considers its capital structure “pretty tight,” emphasizing a “very good cash position” that management is “very guarded of at the moment.” Croser said Delta Lithium’s enterprise value is “a little over AUD 100 million” and described a “curious scenario” in which the company’s listed investments exceed that enterprise value by about AUD 20 million.
Western Australia asset base: Yinnetharra and Mount Ida
Croser said Delta Lithium’s assets are located in Western Australia and include two JORC resources at Yinnetharra and Mount Ida. He cited “significant lithium tonnage” of about 37 million tonnes and highlighted a “very large tantalum resource” at both Yinnetharra and Mount Ida. He also flagged what he called a significant rubidium resource recently delineated within the pegmatites at Mount Ida.
On Yinnetharra, Croser said the project has been “delivering some big tons” and that the company needs to find additional tonnes. He said Delta has expanded its landholding position and “dominates the Thirty-Three Supersuite.”
At Mount Ida, Croser said the project is “fully permitted” and located on granted mining leases, describing it as “shovel-ready” with “no native title considerations.” He said the company recently spun gold out into Ballard, which he characterized as a supportive partner on the ground at Mount Ida.
Mount Ida: lithium, tantalum and rubidium co-product potential
Croser described Mount Ida’s geology as unique, noting the company originally acquired the project for gold before discovering lithium. He said the pegmatites are now well defined and that Delta has completed “well over 100 kilometers of drilling” at the project. According to Croser, the pegmatite resource includes high lithium content, a tantalum credit, and what he described as one of the highest, if not the highest, rubidium resources globally. He added that more than half of the resource is in the Measured and Indicated categories.
He said Ballard currently has six rigs operating at Mount Ida drilling to define its gold resource, particularly at Baldock. Croser said Delta is able to take samples for assay when Ballard drills through pegmatites, describing the situation as effectively “free drilling” for Delta and noting some of the company’s best pegmatite results have come from that recent work.
On potential development synergies, Croser said Ballard is approved to build infrastructure such as a plant and tailings dams, and Delta hopes to leverage capital expenditure and mining development associated with the gold project. As an example, he described a gold pit expected to dig up about 200,000 tonnes of ore that includes a measured portion of the lithium pegmatite near surface, which Delta could stockpile and later access underground using the same decline developed for gold. He said the company expects to quantify these potential capital benefits in its studies later in the year.
Croser emphasized rubidium as a “true co-product opportunity” because it is coincident within the pegmatite. He said an early intercept of “5 meters at 1.8” in the drill database helped spark interest and ultimately contributed to the delineation of the rubidium resource. He explained the rubidium occurs within lithium micas, including lepidolite, and is pervasive within the pegmatite.
He also said Delta has completed significant metallurgy work at Mount Ida. According to Croser, the existing lithium flowsheet produces high-grade lithium and rubidium streams, and the company has extracted battery-grade lithium carbonate and high-purity rubidium carbonate. He cited a last observed sale price on the Shanghai Metal Exchange of “$1 million a ton” for rubidium carbonate and said there is about 80,000 tonnes of rubidium carbonate underground at Mount Ida, adding that the extent to which it can be monetized remains uncertain.
Croser said the company plans to engage with groups in the U.S. and Japan, noting rubidium appears on critical minerals lists in those jurisdictions.
Ballard de-merger investment and balance sheet impact
Croser said Delta recently de-merged gold into Ballard and that the investment has performed well. He said Delta holds 34.4% of Ballard and that this stake is on Delta’s balance sheet, estimating it is “somewhere around AUD 120 million today.” Croser said this has supported Delta’s balance sheet strength and reiterated that the two companies are working together at Mount Ida.
Yinnetharra: drilling, metallurgy and permitting progress
At Yinnetharra, Croser said the company has been drilling recently in an effort to build on tonnes at Malinda, with a drill program expected to wind up next month and results to follow. He said Delta has a mining lease application pending and is in discussions with traditional owners, describing it as a long and patient process.
He said there has been some success at Jameson but stressed the need to find additional tonnes, characterizing the work as “real exploration.” Croser also said most activity has been focused at the M1 area, where Delta has conducted “feasibility level work.” He said the company aims to build on that work while continuing metallurgy on M36 and M47.
Croser cited metallurgy results showing whole-of-ore flowsheet recoveries of about 70% and said the company is working on how to incorporate tantalum into its studies. He added that significant tantalum is present within the lithium system at Yinnetharra and falls within the pit shell, and said Japanese partners are assisting with the study work.
Looking ahead, Croser summarized Delta’s priorities as protecting capital, building confidence, and advancing toward mine development. He added the company would also consider M&A opportunities if they arise.
About Delta Lithium (ASX:DLI)
Delta Lithium Limited explores for and develops lithium properties in Western Australia. Its flagship project includes the Mt Ida lithium project that comprises of 30 tenements located to the north-west of Menzies in Western Australia. The company was formerly known as Red Dirt Metals Limited and changed its name to Delta Lithium Limited in April 2023. Delta Lithium Limited was incorporated in 2003 and is based in Subiaco, Australia.
