Key Highlights

  • Metallurgical testwork is underway on a one-tonne composite of Mt Ida core to confirm the tantalum flowsheet and produce spodumene, mica and tantalum concentrate for refining testwork.
  • Best Q3 drill intercepts at Mt Ida include 8.0m at 1.2% Li2O, 58ppm Ta2O5 and 0.31% Rb2O from 423m, and 10m at 1.4% Li2O, 117ppm Ta2O5 and 0.45% Rb2O from 219m.
  • Six reconnaissance drill targets at Yinnetharra have been designed, with drilling pending approvals and expected in Q4 CY2026, including two gold targets at Mason's and Cathedral.
  • Cash at 30 September 2026 was A$48.8 million, with cash and investments valued at approximately A$145 million at the time of reporting.

Delta Lithium Limited (ASX:DLI), a Western Australian-focused lithium explorer and developer, made steady progress at both its wholly owned projects during the September 2026 quarter. At Mt Ida, located approximately 240 kilometres north of Kalgoorlie, the quarter saw a pivotal shift from exploration drilling to project development activities with the commencement of a significant metallurgical testwork program.

The Mt Ida Lithium project hosts an updated Mineral Resource Estimate of 14.8Mt at 1.21% Li2O, 170ppm Ta2O5 and 0.42% Rb2O. The project area sits on granted Mining leases and is fully permitted for commencement of open pit and underground mining at the main Sister Sam and Timoni lithium resources.

A one-tonne composite of Mt Ida core is now undergoing testwork with the objective of confirming the proposed tantalum flowsheet, producing mica, spodumene and tantalum concentrates for Downstream refining testwork, and optimising the three-product lithium-rubidium-tantalum processing strategy. Managing Director James Croser described this as an important program aimed at testing the stages of the process flowsheet from start to finish, with results expected over the coming months.

Continued Infill Drilling at Mt Ida

Infill drilling conducted by Ballard Mining at Mt Ida during the quarter continued to intersect high-grade mineralised lithium intervals, demonstrating continuity in the resource and providing additional data points for the block model. Best intercepts in the quarter included 8.0m at 1.2% Li2O, 58ppm Ta2O5 and 0.31% Rb2O from 423m depth in BDG001, and 10m at 1.4% Li2O, 117ppm Ta2O5 and 0.45% Rb2O from 219m in DFS674A. These results provide confidence in the quality of the Mt Ida resource ahead of the Scoping Study which has now commenced.

Yinnetharra: Six Targets Designed, Drilling Pending

At the Yinnetharra Lithium project in the Gascoyne region of Western Australia, Delta Lithium holds 2,325 square kilometres of 100% owned tenure. The existing Mineral Resource Estimate is 21.9Mt at 1% Li2O and 75ppm Ta2O5, with an additional 17.5Mt at 136ppm Ta2O5.

The quarter at Yinnetharra was characterised by systematic surface exploration, with the team conducting detailed mapping and close-spaced soil geochemistry across six active prospects. Drill programs have now been designed for each of these targets, with testing pending receipt of regulatory approvals. The six prospects include four lithium-caesium-tantalum (LCT) targets — Tomahawk, Bains, Laphroaig and Jameson — and two gold-focussed targets at Mason's and Cathedral.

The Mason's target follows a high-grade drill intercept of 2m at 5.69g/t gold in MSRC004, which was followed up with soil geochemistry that identified two discrete parallel gold trends. A program of 22 drill holes has been designed to test gold mineralisation beneath the soil anomaly. The Cathedral prospect returned a peak rock chip result of 6.83g/t Au from a gossanous schistose sample, underpinned by broad gold-in-soil anomalism confirmed by close-spaced sampling.

Financial Position

Cash at 30 September 2026 was A$48.8 million. Management noted that cash and investments were valued at approximately A$145 million at the time of the report, a significant financial position that provides the company with runway to execute its dual-project exploration and development strategy without near-term Capital raising pressure.

Sector Context

The lithium sector has experienced price Volatility over recent periods, with spodumene concentrate prices moving through cycles as battery Supply chains expand. Western Australian hard-rock lithium projects, such as Mt Ida and Yinnetharra, occupy a well-established position in the global lithium supply chain and benefit from Australia's strong resource regulatory framework. The rubidium and tantalum co-products at Mt Ida offer optionality across specialist mineral markets that are structurally undersupplied.

Risks

Lithium price risk is the dominant macro Factor for DLI, given that project Economics are sensitive to spodumene concentrate pricing. Both Mt Ida and Yinnetharra remain at pre-production stages, carrying exploration, development and funding risks. The metallurgical testwork at Mt Ida, while underway, has not yet confirmed the full processing flowsheet, and regulatory approvals for the Yinnetharra drilling programs introduce timing uncertainty. Competition for drill rigs and service providers in Western Australia's active mining sector is an execution risk.

What to Watch Next

The completion of Mt Ida metallurgical testwork and any release of flowsheet design data will be a key catalyst for the project's advancement. The commencement of the Yinnetharra Q4 CY2026 reconnaissance drilling program and its early results will be closely watched, particularly at the Mason's gold target following the high-grade MSRC004 intercept. The Mt Ida Scoping Study, which has now commenced, is a fundamental project development milestone.