• Desert Gold launches 4,250m drilling at SMSZ project in Mali
• Program targets resource expansion across five priority prospects
• Campaign supports phased mine development amid strong gold prices

Canadian junior miner Desert Gold announced Monday the launch of a new exploration campaign at its SMSZ gold project in Mali. The initiative includes a drilling program of approximately 4,250 meters and is intended to expand resources at the future mining site.

The company said the work marks the first phase of a reverse circulation (RC) drilling campaign targeting five priority targets, including the Koussili and Gourbassi prospects. Operations should be completed by the end of the first half of the year, though no budget was disclosed. The announcement comes just weeks after Desert Gold raised 7.1 million Canadian dollars ($5.2 million) to fund its West African activities, including the SMSZ project.

"We are delighted to kick off the 2026 drill program at our SMSZ project. This phase of drilling will focus on five areas; three of which already contain gold resources where we plan to test to depth and down plunge for extensions to existing gold lenses. We also plan to step out along strike with an aim to materially expand the scope of these gold systems. The other two target areas have seen only limited drilling to date and represent the potential for new discoveries and additional gold resources," said Jared Scharf, the company's chief executive.

Advancing a Phased Development Plan

Desert Gold's effort to advance the SMSZ project is part of a long-term strategy to develop the site in stages into a producing gold mine. According to a preliminary economic assessment published in November, the first phase envisions the construction of a complex capable of producing approximately 130,700 ounces of gold over 10 years. That projection is based on about 10% of the total gold resources identified at SMSZ, pointing to further growth potential as exploration activities intensify.

In that context, the company is seeking to accelerate the asset's development and capitalize on a favorable market environment. After rising roughly 65% over the past year, gold prices began 2026 at elevated levels. Despite a slight pullback in recent weeks, institutions including UBS and JPMorgan still project record prices, with forecasts pointing beyond $6,000 per ounce by the end of 2026.

Beyond the company's own ambitions, these dynamics also carry strategic significance for Mali, where gold is the country's primary export. They come at a time when exploration investment in the mining sector has declined, with the country recording a third consecutive year of falling investment in 2025, its steepest drop on the continent, according to S&P Global Market Intelligence's "World Exploration Trends 2026" report.

Aurel Sèdjro Houenou