Canadian explorer Desert Gold Ventures is poised for a transformative phase as its SMSZ project in Mali advances toward construction following a promising preliminary economic assessment (PEA). The study reveals robust metrics: a post-tax NPV of $24 million at $2,500/oz gold, soaring to $54 million at current prices ($3,366/oz), with a 34% IRR (64% at spot prices). Annual production of 5,500 ounces from 2026 could generate $18.5 million in revenue, backed by low sustaining costs of $1,352/oz. The modular two-phase plan—starting at Barani East before expanding to Gourbassi—limits initial capital to $15 million while retaining untapped capacity (permitted for 36,000 tons/month vs. planned 18,300 tons).
Strategic Expansion in West Africa
The company is diversifying into Ivory Coast’s Tiegba project, securing 90% of a 297 sq km concession near major mines. Early soil samples show high-grade gold (900+ ppb), hinting at untapped potential. Despite a modest $12.5 million market cap—fractional compared to peers like Barrick Gold—Desert Gold’s valuation appears undervalued, with 45% insider ownership and only 10% of SMSZ’s 440 sq km area assessed. Investors await execution as rising gold prices amplify the project’s upside.
