DeSoto Resources Secures Dom Silverio Manganese Project and Breaks Ground with NT Drilling Permits
DeSoto Resources has secured a strategic manganese project in Brazil and received pioneering drilling approvals in Australia's Northern Territory, setting the stage for significant exploration activity in 2025.
- Acquisition of high-grade Dom Silverio Manganese Project in Brazil
- Validation of copper soil anomalies at Spectrum Project via soil MMI sampling
- First company to secure drilling permits under Northern Territory's new Environmental Licence system
- Upcoming 20-hole drilling campaign planned for Spectrum REE-Au-Cu Project in H1 2025
- Strong cash position of $4.1 million at quarter-end
Strategic Acquisition Bolsters Battery Metals Portfolio
DeSoto Resources Limited (ASX:DES) has marked a pivotal quarter with the acquisition of the Dom Silverio Manganese Project in Minas Gerais, Brazil. This high-grade manganese asset, located in a historically productive mining district, offers promising potential as a low-cost feedstock for battery-grade manganese sulphate, a critical component in electric vehicle (EV) batteries. The project’s proximity to Brazil’s burgeoning EV market and supportive government policies further enhance its strategic value.
Exploration Success at Spectrum Project Validates Geological Model
Back home in Australia, DeSoto’s exploration efforts at the Spectrum Project have yielded encouraging results. Soil Mobile Metal Ion (MMI) sampling confirmed historical copper soil anomalies, reinforcing the company’s geological model that anticipates a significant copper and base-metals deposit. The alignment of these anomalies with major basement faults underscores the prospectivity of the site, setting a solid foundation for the upcoming drilling campaign.
Pioneering Drilling Approvals in Northern Territory
DeSoto has become the first company to receive drilling approvals under the Northern Territory’s new Environmental (Mining) Licence system, effective from July 2024. This milestone includes permits for a fully permitted 20-hole drilling program at the Spectrum REE-Au-Cu Project and up to three reverse circulation pre-collared diamond holes at the Fenton South Gold Project. The drilling campaign is scheduled to commence in the first half of 2025, contingent on the end of the wet season, and is supported by a $160,000 government co-funding grant.
Financial Position and Forward Outlook
Financially, DeSoto remains well positioned with $4.1 million in cash as of December 31, 2024, supporting its exploration and development activities. The company’s expenditure aligns with its IPO prospectus forecasts, demonstrating disciplined capital management. With drilling approvals secured and a strategic manganese acquisition in place, DeSoto is poised to advance its exploration portfolio and capitalize on the growing demand for battery metals.
Looking ahead, the success of the planned drilling campaigns and the development of the Dom Silverio Project will be critical in defining DeSoto’s trajectory in the competitive mining sector. The company’s ability to navigate operational challenges and market dynamics will be closely watched by investors and industry observers alike.
Bottom Line?
DeSoto’s strategic moves in manganese and copper exploration position it well for growth, but upcoming drilling results will be the true test of its potential.
Questions in the middle?
- What are the expected timelines and milestones for the Dom Silverio Project’s development beyond the option period?
- How might the new Northern Territory Environmental Licence system impact future exploration approvals for DeSoto and peers?
- What are the potential risks or challenges associated with processing manganese carbonate into battery-grade sulphate at Dom Silverio?
