Desert Gold Ventures Poised for a Revaluation

SMSZ Project – Tier-1 Property with Clear Scaling Logic

Through the SMSZ Project, Desert Gold Ventures controls an area of approximately 440 km² along the Senegal-Mali Shear Zone, one of Africa's most significant gold structures. This geological fault zone hosts several multi-million-ounce deposits belonging to major producers, further underscoring its strategic location. Currently, the resource comprises approximately 1.1 to 1.3 million ounces of gold at grades of around 1.1 to 1.2 g/t. However, the structure is the key factor. A large portion of the mineralization occurs near surface in an oxidized form. This enables cost-effective mining methods such as heap leaching, in which the ore can be processed without complex beneficiation.

The untapped potential is particularly exciting. Of more than 30 identified gold zones, only about 5 have been systematically incorporated into a resource estimate to date. At the same time, only about one-tenth of the total area has been explored in detail. This means that a large portion of the geological potential has not yet been quantified. CEO Jared Scharf, therefore, speaks of "hidden value in the ground." This is the lever for future growth, as every additional drilling campaign can expand the existing resource or open up new zones.

Operationally, the company is following a clearly structured development plan. Production is scheduled to begin as early as 2026. Initially, a processing capacity of 200-350 tons per day is planned, which will be gradually increased to 1,200 tons per day. This modular scaling significantly reduces capital requirements and enables financing the expansion largely from operating cash flow. At the same time, an expansion of processing via a CIL process is planned, which could increase the gold recovery rate from an initial 68% to over 90%. Combined with estimated production costs of around USD 1,110 per ounce, this results in a high operating margin even under conservative price assumptions.

The financial metrics underscore the project's potential. At a gold price of approximately USD 3,000, an internal rate of return (IRR) of around 57% and a net present value (NPV) of over USD 60 million after taxes are expected. Rising gold prices act as a lever in this context. If the gold price reaches USD 5,000 per ounce, the project value will grow significantly beyond the USD 100 million mark.

Tiegba Gold Project – Second Exploration Pillar with Discovery Potential

In addition to its core project, Desert Gold is developing an additional growth opportunity with the Tiegba Gold Project in Côte d'Ivoire. The property covers approximately 297 km² and is located in a geologically promising region of West Africa. Initial soil samples indicate a large-scale gold system, with anomalies spanning several kilometers and elevated gold values. Since less than 20% of the area has been explored in detail to date, there is significant scope for new discoveries. Strategically, Tiegba serves as a long-term value driver, while the SMSZ project already provides the foundation for short-term revenue.

2026 Drilling Program – Targeted Expansion of Existing Gold Systems

A key driver of the share price is the recently launched 4,250 m reverse circulation (RC) drill program at the flagship SMSZ project. The focus is on five prioritized target areas, including Koussili, Gourbassi West North, Mogoyafara South, Kolon-Soa, and the Barani Gap. Three of these zones already contain defined resources, which are now to be systematically expanded at depth and along strike. At the same time, areas that have been only minimally explored to date are being systematically tested, opening up additional discovery potential. Of particular relevance is the proximity to the planned Barani East Mine. New discoveries could be directly integrated into production planning, further improving the project's economics. The program is therefore considered a key driver for short-term resource growth and a potential revaluation.

Conclusion

Desert Gold Ventures is at a decisive turning point. The company combines an advanced resource, a clearly defined production strategy, and significant exploration potential in one of the world's best gold regions. At the same time, there is a significant discrepancy between the market valuation of approximately EUR 28 million and the project's value of over USD 60 million, with further upside as gold prices rise. Analysts see price targets of up to CAD 0.93, implying a multiple of the current level. In an environment of rising gold prices, this very transition phase to becoming a producer could trigger the decisive price surge.