DeSoto’s Guinea Gold Ambitions Face Regulatory and Assay Uncertainties
DeSoto Resources has reported compelling high-grade gold intercepts in Guinea’s Siguiri Basin alongside a $14 million capital raise and a strategic joint venture to accelerate exploration.
- 8m @ 18.03g/t gold intercept at Tolé from surface
- Encouraging trenching results at Dadjan with multiple gold intervals
- Expansion of Siguiri Basin footprint with new Syncerus project
- $14 million placement secured, anchored by $5 million from Tony Poli
- Joint venture agreement signed with Fortuna Mining to fund exploration
Exploration Breakthroughs in Guinea
DeSoto Resources Limited (ASX, DES) has made significant strides in its gold exploration efforts within Guinea’s prolific Siguiri Basin during the September 2025 quarter. The company’s power-auger drilling at the Tolé project yielded a standout intercept of 8 meters grading 18.03 grams per tonne (g/t) gold from surface, including a remarkable 2 meters at 71.2 g/t. This discovery confirms two substantial mineralised zones each spanning approximately 400 by 400 meters and open in multiple directions, underscoring the potential for a sizeable gold system.
Complementing these results, trenching at the Dadjan project delivered encouraging channel samples with intervals up to 2 meters at 3.95 g/t gold, supported by multiple intervals exceeding 1 g/t. Soil sampling further extended the gold-in-soil anomalies at both Tolé and Dadjan, revealing new coherent corridors and anomalous zones that sharpen drill targeting and expand the exploration pipeline.
Strategic Expansion and Drilling Programs
During the quarter, DeSoto secured the Syncerus reconnaissance permit, increasing its Siguiri Basin landholding to over 1,000 square kilometers. This expansion reflects the company’s commitment to consolidating a dominant regional footprint. Post-quarter, DeSoto commenced a maiden 10,000-meter reverse circulation (RC) drilling program at Dadjan, with plans to progress drilling at Tolé and the flagship Timbakouna project, where soil sampling is underway.
In parallel, exploration in Australia’s Northern Territory advanced with seven RC and diamond drill holes completed at the Spectrum project. Sulphide mineralisation was logged in one hole, with assay results pending, indicating potential for further discoveries in this region.
Financial Strength and Strategic Partnerships
DeSoto ended the quarter with a cash balance of approximately $2.6 million. Shortly after quarter-end, the company successfully raised $14 million through a placement priced at $0.16 per share, anchored by a $5 million investment from noted resource investor Tony Poli. This capital injection significantly strengthens DeSoto’s financial position, enabling the acceleration of its drilling programs and exploration activities.
Further enhancing its growth prospects, DeSoto entered a binding Heads of Agreement with TSX-listed Fortuna Mining Corp to form a joint venture over an area of interest in the Siguiri Basin. Fortuna will sole-fund up to US$12.5 million over three years to earn a 70% interest, providing DeSoto with a low-cost pathway to advance exploration while retaining its core tenements.
Outlook and Ongoing Developments
With exploration expenditure of approximately $3.18 million during the quarter, DeSoto is actively pursuing further licence applications and partnerships to consolidate its position in Guinea. The company benefits from strong in-country relationships and is navigating regulatory processes related to tenement renewals amid Guinea’s mining sector reforms.
As assay results from ongoing drilling programs are awaited, the market will be watching closely for confirmation of the high-grade potential indicated by recent surface sampling and trenching. DeSoto’s strategic moves and robust funding position set the stage for a potentially transformative phase in its exploration journey.
Bottom Line?
DeSoto’s recent discoveries, capital raise, and JV set a promising course, but upcoming assay results will be pivotal.
Questions in the middle?
- Will the pending assay results from Spectrum and Dadjan confirm the high-grade potential?
- How will the joint venture with Fortuna Mining impact DeSoto’s exploration strategy and timelines?
- What are the implications of Guinea’s mining cadastre reforms on DeSoto’s tenement renewals and operations?
