DeSoto Resources has advanced its exploration in Guinea’s Siguiri Basin with a new JV alongside Fortuna Mining and impressive high-grade gold intercepts, supported by a recent $14 million capital raise.
- Binding JV with Fortuna Mining to fund $12.5M exploration in Siguiri Basin
- Maiden drilling reveals exceptional high-grade gold intercepts at Dadjan and Tolé
- Regional exploration programs expanded with soil sampling and geophysics underway
- Raised A$14 million via placement including cornerstone investment from Tony Poli
- Northern Territory projects set for divestment to focus on Guinea assets
Exploration Alliance and Joint Venture
DeSoto Resources Limited has taken a significant step forward in its African gold exploration strategy by entering a binding Heads of Agreement with Fortuna Mining Corp. This alliance establishes a joint venture focused on a defined area within Guinea’s prolific Siguiri Basin. Fortuna will sole-fund up to US$12.5 million over three years to earn a 70% stake, while DeSoto retains 30%. Notably, DeSoto’s existing permits remain outside the JV, preserving their full ownership.
Impressive Maiden Drilling Results
During the quarter, DeSoto completed its maiden reverse circulation drilling program at the Dadjan and Tolé prospects, delivering some eye-catching results. At Dadjan, a standout intercept of 1 metre grading 318 grams per tonne of gold from 13 metres depth was recorded, alongside other significant intercepts such as 5 metres at 5.15 g/t. Tolé’s drilling and power-auger sampling also confirmed the presence of substantial gold mineralisation, with intercepts including 2 metres at 3.64 g/t and 2 metres at 4.81 g/t from shallow depths. These results suggest the potential for a large-scale gold system beneath artisanal workings.
Broader Regional Exploration and Regulatory Progress
Beyond the initial drilling, DeSoto has advanced regional exploration across multiple targets including Koba, Nérékoro Sud, Mini, and Kassa Est, supported by soil sampling, BLEG geochemistry, and mapping. The company has maintained continuous field activity to meet statutory commitments amid Guinea’s ongoing mining cadastre reforms, with all licences and permits in good standing. Additional approvals have been secured to extend maiden work programs, reinforcing DeSoto’s strategic position in the basin.
Corporate and Financial Position
To underpin its exploration ambitions, DeSoto successfully raised A$14 million through a two-tranche placement at A$0.16 per share, including a A$5 million cornerstone investment from prominent investor Tony Poli. The company ended the quarter with a robust cash position of approximately A$12.7 million, providing a solid runway for upcoming exploration activities. Meanwhile, DeSoto plans to divest or seek joint venture partners for its Northern Territory projects, focusing resources on the more promising Guinea portfolio.
Looking Ahead
DeSoto’s next steps include completing power-auger programs at Tolé, infill soil sampling across Dadjan and Tolé, and airborne magnetic surveys to refine structural interpretations. These integrated datasets will guide further drilling campaigns aimed at delineating the extent and grade of the gold mineralisation. The company’s proactive engagement with Guinean authorities and strategic JV partnership position it well to capitalise on the basin’s exploration potential despite regulatory complexities.
Bottom Line?
With high-grade results and strong funding secured, DeSoto is poised to unlock significant value in Guinea’s gold-rich Siguiri Basin.
Questions in the middle?
- How will ongoing mining cadastre reforms in Guinea impact permit renewals and exploration timelines?
- What are the next drill targets following the initial high-grade intercepts at Dadjan and Tolé?
- How might the divestment of Northern Territory assets affect DeSoto’s overall growth strategy?