Desert Metals Accelerates Côte d'Ivoire Gold Exploration with $3.25M Capital Boost

Exploration Momentum Builds at Tengrela South

Desert Metals Limited (ASX: DM1) has made significant strides in its Côte d'Ivoire gold exploration portfolio during the March 2025 quarter. The company completed an 82-hole, 4,474-metre aircore drilling program at its Tengrela South Gold Project, targeting previously untested gold anomalies at the Kakologo and Tiogo prospects. These targets lie within a regional north-south gold corridor, a structural trend known to host mineralisation in the prolific Birimian gold belt.

The drilling program was designed to test high-tenor gold-in-soil anomalies identified in 2024, with assay results expected throughout May 2025. Notably, soil sampling had returned impressive peak assays up to 32.7g/t gold, underscoring the potential of these prospects. The program focused on the weathered oxide zone, with holes averaging around 40 metres depth before reaching fresh rock.

Advancing Targeting at Adzope’s King Kong Prospect

At the Adzope Gold Project, Desert Metals has continued to refine drill targets along the King Kong gold corridor, a high-grade trend extending over 3 kilometres. The company completed a 27.5 line-kilometre dipole-dipole induced polarisation (DDIP) geophysical survey, aimed at mapping sulphide-rich structures that could host gold mineralisation. Concurrently, a substantial 12,000-metre auger drilling campaign is underway to delineate mineralisation trends and support drill targeting.

Initial diamond drilling at King Kong in late 2024 intersected multiple high-grade zones, including 17 metres at 7.5g/t gold. Building on this, Desert Metals plans to commence a follow-up diamond drilling program in May 2025, integrating new geophysical and auger data to prioritise targets. This phased approach reflects a methodical strategy to expand and confirm mineralisation along the corridor.

Strategic Portfolio Focus and Capital Raising

In a strategic move to concentrate resources on its flagship projects, Desert Metals divested its greenfields joint venture rights over the Vavoua, Vavoua West, and Kounahiri West projects to MetalsGrove Mining Limited (ASX: MGA). These projects, still at an early exploration stage, had not undergone modern exploration, and the divestment allows Desert Metals to sharpen its focus on Tengrela South and Adzope.

Supporting its exploration ambitions, Desert Metals successfully completed a $3.25 million placement to institutional and professional investors, including a notable $84,625 commitment from company directors. The capital injection is earmarked to fund ongoing drilling, geophysical surveys, and auger sampling programs across its Côte d'Ivoire assets.

Financial Position and Outlook

Exploration and evaluation expenditure for the quarter amounted to $493,000, with no mining production activities reported. The company ended the quarter with $1.185 million in cash, bolstered by the recent placement. Desert Metals confirms it expects to maintain current operating cash flows and continue meeting its business objectives, supported by its strengthened financial position.

While assay results from recent drilling remain pending, the integration of geophysical and drilling data positions Desert Metals well to refine its exploration targets. The upcoming diamond drilling campaign at Adzope, in particular, will be a critical catalyst for the company’s near-term value proposition.