A$15.02 million loss accompanies 1,300 km² Guinea expansion

Guinea portfolio becomes DeSoto’s central bet

DeSoto Resources Limited (ASX:DES) has made Guinea’s Siguiri Basin the unmistakable centre of its exploration strategy, ending FY2026 with approximately 1,300 square kilometres of tenure across more than 22 Reconnaissance Authorisations and Exploration Permits. More than 14,000 soil and BLEG stream sediment samples had been collected across the portfolio, while Koba, Dadjan, Tole and Timbakouna moved through progressively tighter targeting toward drilling.

The scale is notable, but the portfolio remains an exploration proposition rather than a defined gold resource. At Koba, artisanal workings outlined a corridor about 9 kilometres long and up to 1 kilometre wide, with dump samples grading up to 15.2 g/t Au. Timbakouna produced channel samples including 2 metres at 23.31 g/t Au and soil results up to 19.93 g/t Au. Those results are encouraging exploration indicators, not estimates of the size or economic value of a deposit.

Timbakouna supplies the near-term test

The most immediate operational test is a 485-hole, 10,000-metre power auger campaign at Timbakouna. The program is designed to penetrate lateritic cover and sample saprolite, testing two priority areas defined by coherent gold-in-soil anomalies. DeSoto says one anomaly extends for about 800 metres, while two others reach roughly 950 metres each near artisanal workings.

The company entered the year with the next steps already mapped out: interpret the auger results, integrate airborne magnetic and radiometric data, rank BLEG results from the southwest projects and advance coherent anomalies toward RC and diamond drilling. Recent company coverage also identified the same drilling and geophysical work as the immediate exploration focus, including the Timbakouna auger campaign. The key question is whether broad surface and artisanal evidence can be converted into repeatable subsurface mineralisation.

Loss rises after Northern Territory write-off

The financial statements provide a less flattering measure of the year. DeSoto reported a loss after tax of A$15.02 million, up from A$2.91 million, with A$6.35 million of capitalised Northern Territory exploration expenditure written off after a strategic review. No work was completed on the Northern Territory assets during the year, and the company said it would seek divestment or joint venture opportunities for the portfolio.

Cash and cash equivalents stood at A$9.16 million at 30 June 2026, helped by a A$14.0 million placement at A$0.16 a share. Operating and investing cash outflows totalled about A$10.66 million, while the company disclosed A$21.20 million of exploration commitments, including A$4.77 million due within one year. The balance sheet therefore offers funding visibility, but not a free pass: continued exploration and tenure costs will need to be weighed against the cash balance and any future capital requirements.

Fortuna alliance adds funding, not certainty

DeSoto’s exploration alliance with Fortuna Mining provides a separate route to grow the Guinea portfolio. Fortuna holds an initial 70% interest and is to sole-fund exploration until the later of three years from commencement or US$12.5 million of aggregate expenditure across agreed projects. DeSoto retains its 100% exposure to its existing portfolio outside the alliance area.

After year-end, the alliance secured a Heads of Agreement covering seven projects spanning 591.43 square kilometres. The package remains subject to due diligence, tenure progression and exploration milestones; projects that pass review may become eligible for Fortuna-funded work. That structure limits some direct funding pressure, but it does not remove Guinea’s permitting risk. Several DeSoto tenements are listed as under renewal, revoked subject to renewal, or awaiting further regularisation.