Delta Lithium expands to Mortimer Hills

Delta Lithium (ASX: DLI) is expanding its Yinnetharra lithium and tantalum project as it acquires Mortimer Hills from Zeus Resources (ASX: ZEU).

The strategic acquisition of Mortimer Hills, located in the Gascoyne region of WA, comprises of one granted exploration licence located 5km southeast of southeast along strike from Malinda.

The tenure gives Delta access to another 4km of strike along the Leake Springs metasediment unit that hosts both the Malinda and Jameson resources that boast a combined 21.9Mt of lithium.

Delta managing director James Croser said that the acquisition of Mortimer Hills is a strategic edition to the company’s Yinnetharra project.

“Early-stage lithium exploration by the previous owner has been limited but nonetheless provides for encouraging results and helpful geology vectors for our committed field team,” he said.

“The extra tenure along the strike from Malinda provides us a compelling opportunity to undertake further exploration upon our existing understanding of Yinnetharra’s geology, which will be critical as we continue to advance mining studies towards feasibility with the aim of delineating reserve tonnes.

“Delta’s dominant position surrounding the Thirty-Three supersuite granites, which are thought to contribute significantly to the Malinda and Jameson deposits, has been enhanced.

“We look forward to getting on the new ground and systematically expanding our search for lithium and tantalum mineralisation.”

Delta Lithium, as per the tenement agreement, will pay Zeus Resources $150,000 in cash for the project and Zeus will retain a structured royalty aligning with the delineation of a JORC lithium MRE within a four-year period with a minimum grade of 0.8% lithium oxide.

Zeus chairman Alvin Tan commented that the transaction allows Zeus to realise the upfront value of the asset and retain exposure to potential lithium upside through a well-structured royalty.

“It’s a win-win that enables us to focus on advancing out other projects while maintaining optionality should Delta be successful in defining a lithium resource,” he said.