New Douglas Daly explorer eyeing strong gold test results

A report into the Territory’s gold prospects done decades ago could pave the way for a new explorer to tap into the precious mineral.

The Northern Territory’s newest explorer is hoping work an American mining company did decades ago could clear the way for quick outcomes at its new Top End prospect.

Desoto Resources, operated by Mangusta Minerals, recently drilled two holes in the Territory’s Fenton region in the Douglas Daly, about 250km south-west of Darwin.

Desoto first secured permits to explore the Fenton last year, but had to wait for the NT’s dry season to end before it could begin drilling.

Desoto managing director Chris Swallow and chairman Paul Roberts were engaged in project generation work when they came upon an almost 30-year-old report on prospects in the Fenton.

Core samples at the Desoto Resources' testing area.

Mr Swallow said the start-up’s entry into the Northern Territory was made easier by the initial exploration work done by United States miner Homestake, which owns America’s largest goldmine, Leed, in South Dakota.

That legacy report Desoto obtained was prepared after testing by Homestake in the mid-1990s and finalised in 1997, and identified abundant prospects for gold discovery in the Fenton.

“While most of the other deep diamond drillholes in the area have encountered variable-styles of mineralisation, FEN 14 was the first hole to encounter the style of target contemplated or conceptualised by Homestake to be available in the Fenton project area,” the report said.

Drilling work at Desoto’s Fenton site began last month.

Located about 50km west of previous mining activity at Pine Creek, Mr Swallow said the Fenton prospect is a “regional scale” shear zone that could potentially deliver millions of ounces of gold.

“The area’s pretty underdone from an exploration perspective,” Mr Swallow said.

“Exploring was half-hearted and after Homestake pulled out, exploration focused on elsewhere, but we believe there is potential to find something very big here.

Desoto Resources testing onsite earlier this month.

“It was neglected by the people who attempted to follow-up Homestake but is a regional scale shear zone which is under-explored.

“We’re looking for big chunky intersections or 20 to 60 metres of good grade gold and that’s what we think it can hold.

“Exploration is always a crap shoot as far as what your results will be, but if we get in the right system we’ll be out there drilling and if it gets to mining, the mine will be there for years.”

He said first test results were expected back from the Pine Creek testing laboratory within weeks.

The company undertook an initial public offering last year which raised $1m seed funding and $11m in total.

Desoto has partnered with Bacchus Resources to deliver mining services.