Develop Global is moving closer to a final investment decision (FID) at its Pioneer Dome lithium project in Western Australia, with new infill drilling results strengthening the company’s case for a near-term direct shipping ore (DSO) operation.
The company has returned the first batch of assays from a 20,000m reverse circulation grade control drilling program, which it said confirmed Pioneer Dome hosts a high-grade lithium deposit with low iron and mica content, suitable for DSO production.
The results exceeded the existing resource model and demonstrated strong continuity across the deposit, supporting Develop’s production planning ahead of a potential FID targeted for June 2026.
Key results include 32m at 1.71 per cent lithium oxide (Li2O) and 52 parts per million (ppm) tantalum pentoxide (Ta2O5) from 64m, 37m at 1.62 per cent Li2O and 51ppm Ta2O5 from 64m, and 34m at 1.57 per cent Li2O and 51ppm Ta2O5 from 80m.
Develop said the first 38 holes received from the 234-hole program averaged 23m at approximately 1.6 per cent Li2O, with true widths estimated at 90 per cent.
Develop managing director Bill Beament said the results showed the company was making rapid progress toward development readiness.
“The pieces of the Pioneer Dome jigsaw are coming together extremely well, positioning Develop to capitalise on surging lithium prices,” he said.
“The receipt of these assays and what we have seen in the remaining drill holes means we can now finalise our production profile and economic studies in preparation for making a potential FID next month.
“The FID announcement would be accompanied by cost estimates and forecasted returns based on the current 850,000t DSO inventory.”
Beament said the miner is confident the studies will demonstrate a solid “business case” for Pioneer Dome, while also highlighting the opportunity for Develop to benefit from the lithium market.
“Pioneer Dome is rapidly emerging as one of the most exciting near-term lithium development opportunities in Australia, and we are moving quickly to set it up as a potential DSO project. It is a compelling opportunity for Develop, being fully permitted and shovel-ready,” he said.
“This outlook is reflected in the strong interest shown by Tier-1 offtake counterparties, which are competing strongly for Pioneer Dome DSO product”.
The FID is expected to be based on mining 850,000 tonnes of DSO from a single open pit across a 12-month production campaign, grading 1.2 per cent Li2O.
The production scenario is supported by the Pioneer Dome scoping study, which contemplated life-of-mine open pit production of 1.4 million tonnes at 1.2 per cent Li2O.
Develop said the DSO would be mined using conventional drill and blast, truck and excavator methods, before being crushed on-site with mobile plant and hauled to the Port of Esperance for export.
The product is being tendered as a 12-month term offtake agreement on a CIF China basis, with global companies across the battery supply chain completing final due diligence on DSO offtake and project funding.
Develop said shortlisted non-binding offtake proposals indicate DSO pricing in the range of $US362 per tonne to $US430 per tonne CIF China for a 1.2 per cent Li2O product, based on an assumed lithium carbonate spot price of $US27,500 per tonne CIF China.
Pre-production capital costs are estimated at $35–40 million, which Develop intends to fund through a project finance debt facility with its preferred offtake partner.
Major open-pit mining, crushing and haulage tenders are progressing, with contract awards targeted after FID.
Contractor mobilisation and site establishment are targeted for the September 2026 quarter, which could support first DSO sales and exports in the December 2026 quarter.
The company said all key regulatory approvals and permits required to commence mining and establish supporting infrastructure at Pioneer Dome have been secured, leaving no outstanding approvals required before FID.
Pioneer Dome will be operated under a contractor model, with specialist contractors expected to handle surface mining, mobile crushing and logistics, supervised by a dedicated owner’s team.
Develop has identified several key milestones for the June 2026 quarter, including a board-approved FID, execution of a binding DSO offtake agreement and debt financing package, major contract awards, and the release of Pioneer Dome’s forecast costs and timeline to first DSO on ship.
The company is also continuing technical planning for a potential underground DSO operation, which could support production beyond the initial open-pit campaign.
