Desert Minerals Advances Exploration with New Soil Sampling and Lithium Drilling

Focused Exploration Efforts at Mt Monger Gold Project

Desert Minerals (ASX:DSM) has initiated a 379-sample Ultrafine Soils Program at its Mt Monger Gold Project in Western Australia, aiming to pinpoint new gold anomalies beneath shallow transported cover. The sampling grid, spaced at 200m by 100m, targets areas where Cenozoic laterite and alluvial deposits may mask Archean orogenic gold systems. Notably, the survey encompasses historic prospects Mustang and Impala, which have previously demonstrated near-surface gold mineralisation, lending credence to the company's broader structural model.

Systematic Lithium Drilling Commences at Scotty Project

In Nevada, the Scotty Lithium Project has entered a drilling phase designed to test near-surface lithium mineralisation. The program combines infill and step-out drilling informed by prior geological mapping, soil geochemistry, and magnetotelluric data to evaluate continuity and scale ahead of a potential maiden JORC Mineral Resource estimate. The project carries a conceptual Exploration Target of 460–837 million tonnes at 1,145–1,175 ppm lithium, though the company notes that further exploration is required to confirm a resource. This drilling campaign builds on the earlier announcement of the project's commencement and is critical to advancing resource definition. The targeted drilling approach reflects a disciplined strategy to convert promising geophysical and geochemical anomalies into quantifiable resources, consistent with Desert Minerals’ broader exploration philosophy.

Financial Discipline Supports Exploration Momentum

Desert Minerals ended the quarter with a cash balance of approximately A$3.24 million, underpinning its exploration activities and operational costs. The company reported exploration expenditure of around A$712,000 during the quarter, which was under the budgeted allocation. This financial prudence is evident in other areas as well, with costs related to directors’ fees and working capital also running below forecast. The company’s cash flow statement reflects a net cash outflow from operating activities of A$788,000, balanced by disciplined spending and the absence of production-related expenses.

Strategic Outlook and Project Portfolio Management

Desert Minerals continues to evaluate potential project and corporate opportunities aligned with its strategy to build a portfolio of high-quality mineral assets. While no acquisitions are currently under consideration, the company maintains flexibility to pursue value-accretive growth options in the mineral exploration or related technology sectors. The company’s Executive Chairman, Peretz Shapiro, emphasised the focus on execution phases for both Mt Monger and Scotty projects, with exploration programs carefully planned and permitted. This measured approach follows the company’s successful ASX listing in October 2025, which raised A$5 million to fund initial exploration and corporate activities, as detailed in its $5M ASX IPO.

Tenement Status and Regulatory Considerations

The Mt Monger portfolio comprises multiple granted and pending tenements, with some applications underway to convert exploration licences to mining leases. This introduces an element of regulatory uncertainty, as outcomes of these conversion applications remain pending. The Scotty Lithium Project holds a 51% interest in numerous claims registered under NEVLITH LLC, covering a substantial land area in Nevada. The company’s methodical approach to tenement management and regulatory compliance is critical to maintaining project integrity and advancing exploration objectives.

Next Steps and Market Implications

With drilling underway at Scotty and soil sampling progressing at Mt Monger, Desert Minerals is poised to deliver critical data that could shape its resource base and valuation. Results from these programs will be closely watched by investors, particularly given the conceptual nature of the lithium Exploration Target and the potential for new gold anomalies beneath transported cover. The company’s financial position provides a runway of approximately four quarters based on current expenditure rates, allowing for sustained exploration without immediate capital raising. However, the pending tenement conversions and the early stage of resource definition at Scotty inject a degree of uncertainty into the timeline for resource declaration and potential development.

As Desert Minerals advances these programs, the market will be attentive to assay results, resource updates, and any strategic moves to expand or consolidate its portfolio. The company’s disciplined cash management and systematic exploration underpin a cautious yet proactive growth strategy in competitive gold and lithium sectors.

The ongoing drilling at Scotty Lithium builds on the company’s earlier campaign launch, reflecting a clear commitment to resource definition in a prolific lithium district targeting near-surface lithium zones.