Desert Gold’s flagship is the SMSZ project (Senegal-Mali Shear Zone) in western Mali, a 440 square kilometre land package about 120 km southwest of Kayes, sitting between Allied Gold’s Sadiola mine to the north and Barrick’s Loulo-Gounkoto complex to the south. The company also holds an option on the early-stage Tiegba gold project in Côte d’Ivoire, currently awaiting presidential decree on the mining license. The conversation covered the planned commissioning of a 240 TPD modular gravity plant at Barani East in July 2026, the political and logistical situation in Mali, the current RC drill program, and the path from a small starter operation to potential CIL expansion.
TL;DR
Jared is targeting first gold production in the second half of 2026 from Barani East, running a 240 TPD modular gravity circuit (six containers already shipping from China to Mali). At a head grade of around 1.6 g/t this implies roughly 16,000 ounces per year at the small phase, generating about US$1.5 to US$2 million per month in revenue at current prices. They plan to scale to 1,200 TPD gravity for an additional roughly US$3 million in capex, and eventually add CIL for north of US$20 million more, which is not yet funded. The current resource sits at 337,000 ounces measured and indicated at just under 1 g/t and 880,000 ounces inferred at just over 1 g/t, with the bulk of the inferred (450,000 ounces at Mogoyafara) coming from Hyundai-era drilling that they relogged but couldn’t upgrade past inferred. Recently raised C$7 million in a financing at 12 cents with a half warrant, mostly from insiders and the chairman. They have just kicked off a 4,250 metre RC program around Barani East for about US$500,000. Major risk is the political situation in Mali, which is in turmoil with a blockade on Bamako, suspended Department of Geology and Mines for around five years, and a four to five year licence renewal backlog.
What have they done for shareholders lately?
Closed a C$7 million financing at 12 cents with a half warrant attached. Announced and started a 4,250 metre RC program at SMSZ targeting both near-mine zones around Barani East and the Sambala area where they previously hit 2 g/t over 30 metres in the bottom of an aircore hole. Plant equipment for the 240 TPD gravity circuit is on its way to Mali along with six months of consumables to buffer against logistical disruption. Civil works at Barani East are in progress. Water bore drilling at Barani East is finding tons of water. The small scale mining lease has been submitted for renewal at the end of 2026 and Jared confirmed renewals are automatic under the old mining code even if administrative delays continue. The PEA on the project (treated to PFS-level detail on costing) showed a US$61 million after-tax NPV10 and 57% IRR at US$2,800 gold with a US$20.4 million capex.
How much money do they have and what are they spending it on?
They raised C$7 million recently, which is enough to fund the 240 TPD gravity plant commissioning, drilling in Mali (the current 4,250 metre RC program at roughly US$500,000), and a first-pass drill program at Tigba in Côte d’Ivoire of about US$300,000 (six fences). The 1,200 TPD gravity expansion needs another US$3 million, which Jared said could come from cash flow. CIL expansion would need north of US$20 million additional capex and is not currently funded. G&A is roughly US$1.5 to US$2 million per year, with marketing budgeted at US$100,000 to US$200,000 (5 to 8 percent of G&A). All revenue will be sold on spot, with no hedging at this small scale. Insiders hold around 10 percent (4.5 million shares for Jared personally at roughly 18 to 20 cents average cost), Eric Sprott about 3 percent, and most of the 64.2 million warrants outstanding (mostly at 8 and 12 cents) are held by three or four insider-aligned holders. Drilling budget for a full season at SMSZ would ideally be US$4 to US$5 million for around 20,000 metres.
Upcoming catalysts
Technical: assay results from the current 4,250 metre RC program around Barani East and Sambala, with logistics potentially delaying turnaround given the Bamako blockade, targeted to be completed before the rainy season starts in early July. Operational: commissioning of the 240 TPD modular gravity plant targeted for 19 July 2026; first gold pour in the second half of 2026; scaling to 1,200 TPD gravity at Barani East; eventually relocating or commissioning a second gravity plant at Gourbassi (14 km away) once Barani East mine life is exhausted (currently planned at four years but Jared believes 10+ years is realistic with additional discovery). Corporate: signed presidential decree on the Tiegba mining license in Côte d’Ivoire (could come at any moment), followed immediately by a walking mag survey and first-pass RC drilling over the historic Newcrest anomaly (4 km long by 2 km wide); potential future M&A or sale conversations with neighbours including Allied Gold (potentially Zijin); CIL expansion decision two years down the road.
Risks
The political situation in Mali is the dominant short-term risk. Recent coordinated attacks on military posts and a blockade on Bamako are disrupting commerce, fuel supply, and the movement of consumables. The Department of Geology and Mines and the Mines Ministry have been suspended for around five years, creating a four to five year permit renewal backlog. Jared was clear he doesn’t know how the political situation will resolve. The 2023 mining code (higher royalties, higher state ownership) hasn’t been applied retroactively to Desert Gold’s licenses, but he can’t guarantee that won’t happen, particularly when the small mine lease comes up for renewal at the end of 2026. Diesel costs have risen materially because of both Iran-related disruptions and the Bamako blockade. The road from Bamako to site has deteriorated from a 12-hour drive to a two-day drive. Going into production from a PEA rather than a PFS is inherently riskier. Management has no prior production track record. The plant will need to be dismantled and trucked 14 km to Gourbassi at some point with three to four months of no production during the move. Recoveries at Barani East are around 67 percent on gravity alone, with the full economic uplift only coming if CIL gets built later (which requires more capital). Illegal miners on the periphery of the property are an ongoing nuisance and security concern.
Desert Gold CEO Interview
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