Limited Assay Results Push DeSoto to Divest Northern Territory Assets
DeSoto Resources has completed a 4,388-metre drilling program at its Spectrum Project in Australia's Northern Territory, revealing limited gold and rare earth element mineralization. The company will now pivot its exploration efforts to its Siguiri Basin Projects in Guinea, while exploring joint venture or divestment options for its Northern Territory assets.
- 10 RC/DD holes drilled totaling 4,388 metres at Spectrum Project
- Assays show limited anomalism in gold, copper, zinc, and rare earth oxides
- Fenton Shear Zone exhibits some gold and rare earth element potential
- DeSoto to focus exploration on Siguiri Basin Projects in Guinea
- Company considering joint ventures or divestment for Northern Territory projects
Exploration Overview
DeSoto Resources Limited (ASX, DES) has announced the completion of a significant drilling campaign at its Spectrum Project, located within the Northern Territory of Australia. The program comprised 10 reverse circulation and diamond drill holes, totaling 4,388 metres, aimed at testing the mineral potential of the Fenton Shear Zone, a structurally complex gold and rare earth element target.
The Spectrum Project lies within the Pine Creek Orogen, a region known for orogenic gold deposits and pegmatite-hosted lithium mineralization. The drilling targeted geophysical anomalies and structural features along the eastern and western flanks of the Fenton Shear Zone, with a focus on gold, copper, zinc, and total rare earth oxides (TREO).
Assay Results and Interpretation
Assay results from the 2025 drilling program, combined with previous data from 2023, indicate the presence of gold and rare earth element mineralization, but at levels considered insufficient to justify continued exploration in the Northern Territory. Notable intercepts included 6.42 metres at 1.45% TREO from 399 metres and minor gold values such as 2.74 metres at 0.34 ppm Au from 400 metres.
The drilling intersected sulphide zones and broad low-grade TREO intervals, with some copper and zinc mineralization. However, the overall tenor of mineralization was limited, and the company’s Managing Director, Chris Swallow, expressed that the assay results did not provide enough encouragement to continue exploration in the Fenton Shear Zone.
Strategic Shift and Future Plans
In light of these findings, DeSoto Resources has decided to shift its exploration focus to its Siguiri Basin Projects in Guinea, West Africa, which are considered to have higher potential. The company will actively seek joint venture partners or consider divestment options to realise value from its Northern Territory portfolio.
The Spectrum Project remains underexplored with modern techniques, and the recent gravity survey identified a significant granite body, the Oolloo Granite, which may hold further exploration potential. Nonetheless, DeSoto’s immediate strategy prioritizes its African assets, reflecting a pragmatic approach to resource allocation and capital deployment.
Technical and Operational Details
The drilling program utilized industry-standard reverse circulation pre-collars followed by diamond drilling, with samples assayed by reputable laboratories using comprehensive analytical techniques. Quality control measures included field duplicates, standards, and blanks, ensuring data reliability. Drill hole locations were surveyed with handheld GPS, and geological logging was detailed to support future resource estimation.
Despite the comprehensive data collection, the company notes that the true width of mineralization remains uncertain, and the structural complexity of the Fenton Shear Zone poses challenges for interpretation.
Bottom Line?
DeSoto’s pivot to Guinea signals a strategic refocus, but the fate of its Northern Territory assets hinges on finding partners willing to unlock their latent value.
Questions in the middle?
- Will DeSoto secure joint venture partners or buyers for its Northern Territory projects?
- What exploration potential remains untested within the Oolloo Granite and Western Target Area?
- How will the shift to the Siguiri Basin impact DeSoto’s valuation and investor sentiment?
