Western Australian exploration and development company Delta Lithium is moving to spin off its Mt Ida gold assets into a separate entity, Ballard Mining, after a significant resource upgrade confirmed more than one-million ounces of contained gold at the project.

The move, announced Tuesday, comes as the company positions itself to sharpen its focus on lithium exploration and development, while unlocking value from its gold portfolio. 

Delta said the proposed demerger would allow Ballard Mining to raise capital through an initial public offering (IPO) and seek a separate listing on the ASX by mid-2025, subject to market conditions and regulatory approval.

The latest mineral resource estimate for Mt Ida has increased to 10.34-million tonnes at 3.33 g/t gold, for a total of 1.1-million ounces. About 93% of that resource is located on granted mining leases, and the Baldock deposit, which holds 930 000 oz, has received full mining approval.

“Mt Ida remains one of the very few, high-grade undeveloped gold projects in WA in excess of 1Moz,” MD James Croser said in a statement. “Now is the time for Delta to separate our commodities and crystalize the value we have created at Mt Ida.”

Ballard Mining, named after a local landmark, will hold the gold rights through its wholly owned subsidiary Mt Ida AU Pty Ltd. Delta will retain a significant shareholding in the new vehicle and preserve full ownership of all non-gold mineral rights at Mt Ida, including lithium. The company said it would maintain balance sheet strength while still benefiting from high gold prices through its equity in Ballard.

If the IPO proceeds, existing Delta shareholders will receive an in-specie distribution of Ballard shares and be eligible to participate in a priority offer. Funds raised will support infill and exploration drilling at Mt Ida, advance a definitive feasibility study, and potentially lead to a final investment decision.

“The new target for Mt Ida is to complete a large infill drill-out at Baldock and continue with further exploration on the wider tenure,” Croser said.

The Mt Ida project is located about 225 km by road from Kalgoorlie, and benefits from full permitting in the Baldock area for both openpit and underground mining, making it a near-term development candidate.

Delta’s shift comes amid continued investor appetite for gold exposure and record prices for the yellow metal, while lithium markets remain volatile. The demerger structure is expected to give each commodity a clearer development path and investor base.