DeSoto’s REE Discovery Along Fenton Shear Zone Signals High-Stakes Exploration Ahead

• Significant REE grades found over 6km south of Quantum deposit
• Selective re-assaying of 2023 gold drill pulps reveals up to 1.30% TREO
• Fenton Shear Zone confirmed as a major structural host for REE-Au mineralisation
• Historic drilling at Quantum shows high-grade TREO and gold intersections
• Fully permitted 10,000m drilling campaign planned for 2025

Context and Discovery

DeSoto Resources (ASX:DES) has announced a significant breakthrough in its exploration efforts at the Fenton North Gold Project in the Northern Territory. The company’s selective re-assaying of drill samples from its 2023 gold-focused program has revealed substantial rare earth element (REE) mineralisation more than 6 kilometres south of the previously known Quantum REE deposit. This discovery extends the known mineralised strike length along the Fenton Shear Zone (FSZ) to over 6 kilometres, highlighting the potential for a large, structurally controlled REE-gold system.

Key Assay Highlights

The standout intercept from the re-assayed pulps includes 7 metres at 0.49% total rare earth oxides (TREO) with a notable 1 metre interval grading 1.30% TREO and 0.37% P2O5 from a depth of 479 metres in hole FMD0004. These grades are complemented by anomalous REE values within a 72-metre gold intercept at the same hole, underscoring the multi-element potential of the system. Historic drilling at Quantum further supports this, with intercepts such as 50 metres at 1.55% TREO including 6 metres at 6.55% TREO and significant gold grades, reinforcing the prospectivity of the FSZ.

Geological Significance

The FSZ emerges as a major regional structural feature capable of hosting world-class REE and gold mineralisation. DeSoto’s Managing Director, Chris Swallow, emphasised the importance of the discovery, noting that the re-assaying of gold-focused drill samples unexpectedly revealed significant REE mineralisation, expanding the known footprint of the mineralised system. The geological model now envisions a complex multi-element system that includes REE, gold, and copper mineralisation along more than 10 kilometres of strike.

Strategic Implications and Next Steps

Following the acquisition of Spectrum in May 2024, which included the high-grade Quantum REE discovery, DeSoto has rapidly advanced its understanding of the region’s mineral potential. The company has secured permits for up to 10,000 metres of drilling planned for 2025, aiming to systematically test and expand the mineralised zones along the FSZ. This drilling campaign is poised to provide critical data to refine the geological model and assess the economic viability of the REE-Au-Cu system.

Market and Sector Context

Rare earth elements are critical to modern technologies, including electric vehicles, renewable energy, and electronics, making discoveries like DeSoto’s highly strategic. The Northern Territory’s underexplored geology combined with DeSoto’s methodical exploration approach positions the company well within the competitive rare earths sector. Investors will be watching closely as the 2025 drilling program unfolds, potentially unlocking a significant new source of critical minerals in Australia.

Bottom Line?

DeSoto’s expanding REE footprint along the Fenton Shear Zone sets the stage for a pivotal 2025 drilling campaign that could redefine the company’s resource potential.

Questions in the middle?

• What is the true extent and continuity of the REE mineralisation along the Fenton Shear Zone?
• How will the upcoming 10,000m drilling program refine the geological and economic model of the REE-Au-Cu system?
• What are the metallurgical characteristics and potential recoveries of the REE and associated metals from these deposits?