• Desert Gold seeks funding to start mine at Mali’s Barani, Gourbassi sites

• Capital needs rise to $20.4M; mine plan updated for higher output

• Project targets 130,700 oz over 10 years amid record gold prices

Desert Gold Ventures Inc. is in advanced discussions with potential partners to secure funding and begin construction "as soon as possible" at its Barani and Gourbassi gold deposits in Mali, the company announced on Tuesday.

The move was announced in an updated preliminary economic assessment for its SMSZ project, which raised the estimated initial capital required to build its first mine to $20.4 million from a previous estimate of $15 million.

The company stated that the project has an estimated payback period of 2.1 years, though no details were provided on the specific financing options being considered.

The modest initial capital is part of the company's strategy for a phased development approach.

"With less than 10% of the SMSZ Project's total gold resources incorporated into this study, there is substantial opportunity to enhance project economics and materially expand the operation over time," said Jared Scharf, CEO of Desert Gold. "The mining approach has been deliberately designed to remain modular and flexible from a processing standpoint, giving us maximum operational optionality as the project advances."

The increased construction cost is accompanied by a rise in the mine's expected production, which has been revised to 130,700 ounces over a 10-year mine life, up from a previous estimate of 97,600 ounces over 17.4 years. The increase follows the integration of the eastern part of the Gourbassi deposit into the mine plan, which is expected to double the amount of ore processed to 36,000 tons per month.

Desert Gold holds a small mine operating permit for the SMSZ project. The company did not mention any regulatory obstacles to starting production. The updated assessment comes as gold prices have hit record highs this year, a rally the World Bank predicts will not slow until 2027.

Emiliano Tossou