Delta Lithium is understanding more and more the gold potential of its Mt Ida project in WA, but this is not the key reason it’s exploring the asset.
In mid-October, Delta declared a 412,000-ounce gold resource at Mt Ida and speaking at the company’s annual general meeting (AGM) this week, managing director James Croser said Delta was faced with a conundrum.
Croser acknowledged the challenges a softening lithium market was posing for Delta, which has seen the company shelve its direct shipping ore (DSO) venture for the moment.
But the presence of gold is providing solace.
“Mt Ida continues to offer us consolation in the form of high-grade gold, about which the company is currently investigating the best way to leverage,” Croser said.
“It is hardly an inconvenience when your lithium drilling repeatedly produces lovely intervals of gold lode, grading up over a hundred grams per tonne in a couple of holes at least.”
Delta non-executive chair and Mineral Resources (MinRes) boss Chris Ellison said having gold could be an asset for future dealmaking.
“We’ve identified a number of regions out there that we think are going to be good for Delta,” he said at the AGM.
“And then there are other opportunities where – and we’re not a gold mining company at Delta – where we’ll be prepared to trade our gold, so we can get some Tier-1 quality land.”
Ellison joined Delta in mid-September after MinRes acquired a 17.4 per cent majority stake in the company. This coincided with David Flanagan stepping down as chair.
Ellison and Delta non-executive director and MinRes chief executive – lithium, Josh Thurlow, breezed through AGM voting, with Ellison reiterating his place at the company.
“I know there’s a question mark hanging out there about whether I’m the appropriate chair for the company,” Ellison said. “I think I am, but time will prove that.
“Be assured when I’ve got my Delta hat on, I’m there for Delta. And I’m going to make sure that the MinRes investment not only grows but flourishes, and my intention is I’d like to get them (Delta assets) into production at the earliest possible time.”
Delta Lithium closed at $0.47 per share on Wednesday.
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