Desoto (ASX:DES) broadens Spectrum at Pine Creek to encompass rare earths

Desoto (ASX:DES) broadens Spectrum at Pine Creek to encompass rare earths

May 30, 2024 Off By Amanda Ellis

Desoto Resources experienced a second day of gains on-market in early trading after inking a deal to snap up the high-grading rare earths project Spectrum in the Northern Territory, which also features a copper-lead-zinc zones.

The Western Australian-domiciled company also holds lithium-gold assets in the Pine Creek minerals province, putting its focus well and truly on the proven province in the Top End.

Spectrum is near Desoto’s other two main projects, Fenix Lithium-Gold Project on Pine Creek Pegmatite Field in the Top End and the nearby Fenton Gold Project on Fenton Shear Zone.

Ambitious project generator Desoto plans to spend $2 million to drill 3,500 metres at Spectrum in the first 15 months after its picks up the project.

Desoto Managing Director Chris Swallow said the acquisition was complementary to the company’s existing portfolio and gave it a strategic position in the Territory.

“This highly complementary acquisition gives us a strategic, critical minerals position in the Northern Territory,” he said.

“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.”

Growth-focused Desoto’s nearby Fenton project includes gold hits of up to 8.55 grams per tonne gold from limited drilling.

Historical drilling at Swallow with diamond drills and RC drilling has confirmed a 350m REE strike that includes neodymium and praseodymium minerals.

Best results include:

  • TDD81: 50m @ 1.55% TREO from 245m, including 6m @ 6.55% TREO from 248m
  • TDD102: 21.9m @ 2.55% TREO from 276m, including 9.2m @ 3.78% TREO from 288m
  • TDD193: 17m @ 1.0% TREO from 254m, including 1m @ 6.42% TREO from 254m

Critical minerals in the Top End

Promoting critical minerals resource discovery and development is a focus for the Australian Government, and the Northern Territory Government which manages the Territory.

Desoto views government rare-earths focal points as an opportunity for the company and Spectrum.

“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,” Swallow said.

“The strategic synergy we are gaining with this acquisition strengthens our position in the critical minerals landscape.”

Junior company Desoto has focused on exploration since first listing on the Australian Securities Exchange in December 2022.

Besides its exploration in the Territory, the West Perth company has also explored offshore for manganese. Its board and management has a track record in minerals exploration and development.

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