Desert Minerals Defines 265 Mt Lithium Resource at Scotty Project

Maiden Resource Establishes Scotty as a Major Lithium Clay Deposit

Desert Minerals Limited (ASX:DSM) has announced a significant milestone with the release of a maiden JORC (2012) Mineral Resource Estimate at its Scotty Lithium Project in Nevada, USA. The estimate defines a large-scale lithium clay deposit of 264.9 million tonnes at an average grade of 1,006 parts per million (ppm) lithium. This includes 139.8 Mt classified as Indicated at 1,002 ppm lithium and 125.1 Mt as Inferred at 1,011 ppm lithium, positioning Scotty among North America's noteworthy lithium resources.

Exploration Target Signals Potential for Resource Expansion

Beyond the current resource boundary, Desert Minerals has delineated a substantial Exploration Target ranging from 218 to 327 million tonnes grading between 990 and 1,490 ppm lithium. This target area lies northwest of the resource and is anchored by drill hole SC23-003, which returned the project’s best intercept of 124.97 metres at 1,237 ppm lithium but sits outside the resource limits due to its isolation. The company highlights this as a clear opportunity to both increase the resource size and enhance its average grade through future drilling campaigns.

Robust Geological Model Underpinned by Sonic Drilling

The resource estimate is based on data from 11 sonic drill holes, all drilled vertically, covering a footprint of approximately 1.8 km by 1.6 km within the current claim boundary. The deposit is hosted in a flat-lying volcanic clay domain, with lithium enrichment concentrated in smectite and illite clays within lacustrine sediments. The geological interpretation benefits from consistent stratigraphy and geochemical domaining, supported by statistical analysis and geostatistical modelling using ordinary kriging.

Notably, no Measured Mineral Resource has been declared due to drill spacing constraints, but the Indicated and Inferred classifications reflect reasonable confidence in geological and grade continuity. Desert Minerals adopted a 750 ppm lithium cut-off grade for reporting, informed by analogous Nevada lithium projects and preliminary economic assumptions including open-pit mining and 75% metallurgical recovery.

Assumptions and Funding Position

The company applied a bulk density of 1.7 tonnes per cubic metre, borrowed from the adjacent Bonnie Claire Lithium Project, as no site-specific density measurements have yet been made. Metallurgical recovery assumptions are similarly drawn from regional analogues. Desert Minerals notes that these parameters require confirmation through future project-specific studies.

Financially, Desert Minerals is well-positioned to advance its lithium and gold assets, holding approximately $4.05 million in cash. This funding supports ongoing exploration at Scotty and the Mt Monger Gold Project in Western Australia, reflecting the company’s strategy to build a portfolio of high-quality mineral resources.

Next Steps for Resource Growth and Project Development

The announcement underscores the need for further drilling to test the continuity of the volcanic clay domain between the current resource and the high-grade intercept at SC23-003. Additional work will also focus on project-specific bulk density determinations, metallurgical testing, and economic studies to refine cut-off grades and mining assumptions. These efforts will be crucial to unlocking the full potential of the Scotty Lithium Project and validating its economic viability.

Executive Chairman Peretz Shapiro emphasised the strategic significance of the resource, noting that the shallow, large-scale deposit within a premier lithium district, combined with a strong cash position, positions Desert Minerals to capitalise on growing demand for lithium. The company’s proximity to the Bonnie Claire Lithium Project further enhances Scotty’s prospects.