Desoto Resources Limited

Acquisition of High-Grade Rare Earths Project in the Northern Territory

Best intercept of 50m @ 1.55% TREO, incl. 12m @ 4.51% TREO (14.9% Nd/Pr)

DeSoto Resources Limited (ASX:DES) (“DES” or the “Company”) is pleased to announce an acquisition within its exploration landholding in the Northern Territory. This acquisition encompasses a historical drilling dataset targeting Rare Earth Elements (REE).


HIGHLIGHTS

  • Binding term sheet signed to acquire the Spectrum Project (“Spectrum” or the “Project”), a privately held block (EL31475) with historic high-grade Rare Earth Element (“REE”) intercepts in the Pine Creek region of the Northern Territory.
  • Historic uranium-focused drilling, completed before REEs were recognised as a valuable critical minerals opportunity, intercepted high-grade REEs over 350m of a potential 4.5km strike along the Fenton Shear Zone (FSZ) corridor, with mineralisation open to the north and south.
  • The Project also contains a large 2km by 0.5km untested strong semi-coincident Copper-Lead- Zinc geochemical and geophysical (EM and aeromagnetic) anomaly approximately 1.5km along strike of the historic REE prospect.
  • Spectrum is strategically located inside DeSoto’s existing Fenton Project, with the Company well positioned with a team on the ground ready to explore.
  • Planning for ground geophysics and multiple Diamond Drill (DD) and Reverse Circulation (RC) programs underway.
  • DeSoto to spend $2 million for exploration activities at Spectrum in its first 15 months, supported by the Company’s A$6 million cash position.
  • The acquisition creates a diversified precious metals and critical minerals company aligning with Australia's strategic minerals strategy and is bolstered by government support at all levels in this Tier-1 jurisdiction.
  • The NT exploration season is 6-months, the Company is well advanced on delivering a high- grade complementary manganese Project, to be explored 12 months a year.

Rare Earths Potential:

  • Historical diamond and RC drilling completed across a radiometric (Uranium) anomaly by Territory Uranium Company Ltd (“TUC”) in 2010, intercepted wide zones of REE’s (TREO – Total Rare Earth Oxide) over a 350m strike, including Neodymium-Praseodymium (Nd/Pr), best drill results include:
    • TDD81: 50m @ 1.55% TREO from 245m incl. 6m @ 6.55% TREO from 248m;
    • TDD102: 21.9m @ 2.55% TREO from 276m, incl. 9.2m @ 3.78% TREO from 288m;
    • TDD193: 17m @ 1.0% TREO from 254m, incl.1m @ 6.42% TREO from 254m.
  • The REE mineralisation also has associated Au-Ag within sulphides and is sitting under 50 to 100m of Cambrian limestone cover.
  • First-pass, limited metallurgy (1 bulk composite) was completed by TUC on the TREO mineralisation, with key REE minerals allanite and bastnasite identified.
  • Previously completed TUC liberation test work suggests a concentrate of >19% TREO could be produced and that the sulphide minerals could potentially be treated to liberate Au and Ag in a separate process4.

Base Metals Potential:

  • A strong coincident EM and magnetic anomaly ‘Vesper’ has been identified with associated historical Cu-Zn-Pb MMI soil geochemical anomalism including peak values of 8060ppb Cu, 3140ppb Zn and 980ppb Pb.
  • Located within 1.5km of the REE Quantum prospect (Figures 1-2) and sitting within the same structure, the 2km by 0.5km well-defined discrete EM anomaly was detected by the 2023 DeSoto-NT Government co-funded AEM survey5.
  • Vesper is an undercover target, with about 40m Cambrian sediments overlying the basement response.
  • Historic hole FEND13 drilled 50m to the west of the EM anomaly shows evidence of skarn system development with the presence of calcite-fluorite-garnet veining with pyrite, pyrrhotite and minor chalcopyrite. The hole is interpreted as being a “near-miss” and did not test the anomaly.
  • Vesper is interpreted as a localised anticlinal dome on the eastern limb of a regional antiform, adjacent to the interpreted Fenton Shear Zone, which is a regional scale corridor of deformation and gold mineralisation as demonstrated by DeSoto drilling in 2023.
  • Vesper represents a potential Proterozoic Cu-Au-U-REE skarn style target related to the intrusion and doming of the Cullen Batholith into calc-silicate rocks of the Koolpin Formation.

Commenting on the acquisition, Managing Director Chris Swallow:

“This highly complementary acquisition gives us a strategic, critical minerals position in the Northern Territory. With the confirmed mineralisation and supporting geophysical anomalies in the surrounding Fenton Project, we are now positioned for an accelerated phase of exploration and drilling.

Moreover, the recent government investment to expedite Rare Earths mining in the Northern Territory perfectly aligns with this new acquisition, enhancing our capacity to capitalise on the region's REE potential.

We have been actively investigating critical minerals opportunities since listing through lithium exploration in the Northern Territory and ongoing assessment of offshore manganese projects. The strategic synergy we are gaining with this acquisition strengthens our position in the critical minerals landscape.”


Click here for the full ASX Release

This article includes content from Desoto Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.

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