Significant Gold Discovery Announced at Desert Metals Ltd

Desert Metals Ltd-DM1-DM1 desert landscape with large letters.

Desert Metals Ltd

  • ASX Code: DM1
  • Market Cap: $8,845,732
  • Shares On Issue (SOI): 442,286,592
  • Cash: $1,185,000 (as of 31 March 2025)
  • Desert Metals Strikes Gold: 900m Potential Gold Zone Discovered at Tengrela South

    Desert Metals Limited (ASX: DM1) has announced significant gold mineralisation from its first-pass aircore drilling program at the Tengrela South gold project in CĂ´te d'Ivoire, revealing what could be a continuous 900-metre gold corridor at the previously undrilled Tiogo prospect.

    High-Grade Results Signal Major Discovery Potential

    The company's exploratory drilling has yielded impressive intercepts at the Tiogo prospect, with standout results including:

    • 8m at 6.47g/t gold from 6m depth
    • 12m at 4.20g/t gold from 32m depth

    These high-grade intersections were found in holes located 900 metres apart along strike, suggesting a potentially continuous gold corridor within the upper weathered oxide layer. The underlying fresh bedrock remains completely unexplored, presenting significant additional upside.

    "It is extremely encouraging for a shallow, first-pass, wide-spaced aircore drill program to discover wide, high-grade gold mineralisation in soil sampling anomalies that have never been tested, and are only 30km from the operating Sissingué gold mine," said Desert Metals Managing Director Stephen Ross.

    The gold discovery at Desert Metals Ltd extends beyond the Tiogo prospect, with the northern Kakologo prospect also returning promising results including 18m at 1.02g/t gold from 38m depth in the weathered oxide layer. Understanding the mining feasibility studies will be crucial as the company advances these prospects.

    Strategic Location in Prolific Gold Belt

    The Tengrela South project enjoys a prime position within West Africa's gold-rich Birimian belt. Located just 30km from Perseus Mining's operating Sissingué gold mine, which has produced over 500,000 ounces since 2018, the project benefits from proximity to established mining infrastructure.

    These gold discoveries are particularly significant given their location in the Syama-Boundiali Greenstone Belt, which hosts numerous multi-million-ounce gold deposits including Sissingué, Syama, and Tongon. The geological setting shows striking similarities to Ghana's prolific Ashanti Gold Belt, where major deposits are typically found near granite contacts within Birimian metavolcanics and metasediments. For those interested in investing in mining stocks, this geological context is an important consideration.

    What is Aircore Drilling?

    Aircore drilling is a cost-effective exploration technique that allows companies to sample the weathered rock profile relatively quickly. Unlike more expensive diamond drilling, aircore drilling is ideal for first-pass exploration as it can cover large areas at relatively low cost.

    This technique is particularly valuable in West Africa, where deep weathering profiles often mean that gold mineralisation can be detected in the weathered oxide zone before more expensive drilling is required to test the underlying fresh bedrock.

    For investors, aircore drilling results provide early indications of mineralisation that can guide more targeted and comprehensive drilling campaigns. The high-grade results from Desert Metals' program suggest that follow-up drilling has strong potential to define a significant gold resource.

    Immediate Next Steps

    Desert Metals is moving quickly to build on these promising results with a focused exploration plan:

    1. Ground geophysics: A gradient array induced polarisation (IP) program is scheduled to commence in Q2 2025 to better define drill targets in both the oxide layer and underlying bedrock
    2. Follow-up drilling: Additional drilling at the Tiogo prospect will target the newly identified gold corridor
    3. Diamond drilling at Adzope: Preparations are underway for drilling at the company's other key gold project in southern CĂ´te d'Ivoire

    At the Adzope gold project, the company has recently completed a 19-line, 27.5-line kilometre dipole-dipole IP ground geophysics program along a +3km gold corridor at the King Kong prospect. This work, combined with a first-phase auger program consisting of 233 holes for 2,830m, will help rank targets for an upcoming +5,000m diamond drilling program scheduled to commence in late May 2025.

    Investment Thesis: Multi-Project Gold Explorer in Prime Territory

    The gold discovery at Desert Metals Ltd presents an appealing investment case as an emerging West African gold explorer with multiple high-potential projects in CĂ´te d'Ivoire:

    Project Stage Key Features Upcoming Catalysts
    Tengrela South Early exploration – 900m potential gold corridor at Tiogo
    – 30km from operating SissinguĂ© mine
    – Multiple gold prospects
    – IP geophysics in Q2 2025
    – Follow-up drilling
    Adzope Advanced exploration – King Kong prospect with +3km gold corridor
    – Previous high-grade results
    – Diamond drilling program starting May 2025

    The company's strategic approach of systematically exploring multiple prospects enhances the probability of making significant discoveries. With 1,073.95km² of granted mineral permits and permit applications in CĂ´te d'Ivoire, Desert Metals has secured a substantial footprint in one of West Africa's most prospective yet underexplored gold regions. However, investors should still consider applying timeless investing rules when evaluating this opportunity.

    Why Investors Should Follow Desert Metals

    The recent gold discovery at Desert Metals Ltd highlights several compelling reasons for investors to watch the company closely:

    1. Early-stage discovery potential: The identification of high-grade gold in first-pass drilling suggests significant upside as exploration advances
    2. Strategic location: Projects located in proven gold-producing regions with established mining operations nearby
    3. Multiple value drivers: With active exploration programs across different projects, the company offers several potential catalysts in the coming months
    4. Experienced team: Led by Managing Director Stephen Ross, who brings technical expertise and regional knowledge

    For investors seeking exposure to gold exploration with near-term catalysts, Desert Metals offers an opportunity to participate in the early stages of what could develop into significant gold discoveries in one of Africa's most promising mining jurisdictions. Furthermore, understanding the broader global commodities market provides important context for gold's demand outlook.

    "The two gold intersections at Tiogo are particularly exciting as they were drilled 900m apart and are on strike from each other, thus representing the potential for a new, wide, high-grade gold corridor to exist in the northern area of the Tengrela South permit." – Stephen Ross, Managing Director

    With an active exploration program planned for the remainder of 2025, including geophysics and drilling across multiple projects, the gold discovery at Desert Metals Ltd positions the company well to build on its initial success and potentially deliver substantial shareholder value. Additionally, major industry players like Rio Tinto are shifting investments toward critical minerals, which highlights the evolving landscape of mineral exploration that Desert Metals operates within.

    Want to Know About the Next Major Gold Discovery Before the Market Does?

    Desert Metals' impressive gold intercepts at Tengrela South highlight the potential returns from early-stage mineral discoveries. Stay ahead of the market with Discovery Alert's proprietary Discovery IQ model that instantly identifies significant ASX mineral discoveries and provides actionable investment opportunities before they become mainstream news. Explore historic returns from major discoveries at https://discoveryalert.com.au/discoveries/ and position yourself for the next potential multi-bagger.

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