DeSoto Resources expands into Guinea with acquisition of high-grade gold portfolio

DeSoto Resources (ASX: DES) will bring a highly experienced West African team, along with new technology and ideas, to the portfolio of assets it is preparing to acquire in Guinea.

The company has entered into a binding agreement to acquire 100% of the issued capital of private company Angex Australia, which holds 14 gold projects in Guinea’s Siguiri Basin and interests in a further three in the country’s Gaoual gold belt.

Under the proposed deal, DeSoto will acquire more than 1,200 square kilometres of exploration ground, where existing high-grade drill intercepts will provide walk-up targets.

Guinean gold success

DeSoto’s management group features one of West Africa’s most accomplished gold exploration teams, whose history of success includes Predictive Discovery’s (ASX: PDI) 5.4-million-ounce Bankan gold project.

The Siguiri Basin projects were originally identified and developed by former Predictive Discovery principal geologist Aime Nganare, who is joining DeSoto as the region’s exploration manager and will oversee the new assets.

Managing director Chris Swallow said the portfolio includes two more advanced projects – Timbakouna and Kantoumanina – where ground reconnaissance is already underway, with the company set to commence drilling as soon as rigs can be mobilised to site after the acquisition closes.

High-grade portfolio

“We’re excited about this acquisition of a high-grade exploration portfolio in Guinea’s prolific Siguiri Basin, one of the best regions in the world to make greenfield gold discoveries,” Mr Swallow said.

“A number of newly explored projects in the Siguiri Basin are already yielding impressive drilling results, demonstrating the underexplored nature of this region.”

“The company has very specific expertise in exploring Guinea—with our deep-rooted experience and genuine passion for West African exploration, we are very well placed to make new gold discoveries at this time in a historically high gold price environment.”

Exploration plans

Mr Swallow said the company planned to take a strategic approach to developing a broad-scale structural architecture, utilising low-cost initial exploration methods across multiple areas.

“Bulk leach extractable gold stream sediment geochemistry and power auger will be undertaken to […] identify gold anomalies for follow-up trenching, channel sampling, air core, reverse circulation and diamond drilling,” he said.

To help fund the acquisition and exploration plans, DeSoto has received firm bids for a placement of $4.78 million including $300,000 in participation from the board and management.