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Desoto Resources Ltd (ASX:DES) has found what it describes as a “significant mineralisation event” at its Fenton North project in the Northern Territory.
Re-assaying work on previous drilling from 2023 has pulled up an intercept of seven metres at 0.49% TREO (total rare earth oxides) – including one metre at 1.30% TREO and 0.37% P2O5 (phosphorus pentoxide) from 479 metres.
The project is six kilometres from Desoto’s Spectrum project – which is focused on rare earth elements (REEs), together with gold and copper – and the company has noted similarities between the mineralisation found at Spectrum and the recently re-assayed work done at Fenton North.
This related to zones of enriched TREO and P2O5, and the TREO grades and Nd/Pr ratios at the latter which echoed those of Spectrum.
Desoto has assessed the structural, geochemical and geophysical setting of Spectrum, to build a mineralisation model and better understand the project’s potential.
And it is uncovering evidence the mineralisation of the Quantum REE-Au discovery there, the Vesper EM Cu anomaly and the Fenton North Au Project are part of the same, complex system that is associated with the intersection of the Fenton Shear Zone (FSZ) and the Hayes Creek Fault (HCF) system.
Managing Director Chris Swallow said he believed the Fenton Shear Zone would provide the start of many promising drill results.
“DeSoto has potentially uncovered a globally significant large REE mineralised system with selective re-assaying of its own 2023 drill pulps delivering the potential for a large mineralised system over more than 6km and potentially a much larger strike length,” Mr Swallow explained.
“While the company has always been confident that the Fenton Shear Zone had the scale and structural complexity to support a large multi-element and precious metal system, for the re-assaying of gold-focused drilling to turn up REE’s more than six kilometres to the south of the known Quantum REE deposit is a highly encouraging new development.
“The company is now gearing up for its fully permitted 2025 drill program designed to deliver further discover the target REE-Au and Cu mineralisation up and down the Fenton Shear Zone.”
Desoto has been trading at 7.1 cents this morning.
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