DeSoto Resources Limited provide an update on exploration programs at its 100%-owned Fenton and Fenix Lithium-Gold Projects, located in the
Northern Territory and also provide an update on its global Manganese search. Historic drilling was completed by Homestake Mining Company in the mid-90's, noting similarities between the stratigraphy and mineralisation of Homestake's then +39Moz South Dakota gold mine. A petrophysical study has been completed by Terra Petrophysics on 15 samples of drill core from the Fenton Gold Project. Samples were collected from historic drill holes FEND18 (55m at 0.89g/t gold from 418m incl. 20m at 1.74 g/t gold from 423m) and FEND14 (17m at 0.71g/t gold from 610m. The petrophysical study was undertaken to develop an understanding of physical properties of rocks in the Pine Creek region and to assist with the interpretation of geophysical field data for the upcoming gold exploration program. The results of the study successfully demonstrated a correlation of pyrrhotite sulphide mineralisation with positive magnetic susceptibility, density, conductivity, and chargeability responses. This new data confirms that geophysics, and in particular electrical methods, will be the key to successfully exploring the Fenton Gold project. These results will be used to design geophysical acquisition programs including magnetics, IP and EM. A Passive Seismic (HVSR) and Ground Gravity test survey was completed by Atlas Geophysics along two 4km-long lines, at the Fenton Gold prospect. This survey was designed to assess the applicability of HSVR for mapping the depth of the basement unconformity beneath Cambrian limestone cover. The concept is that topographic highs in the Proterozoic basement unconformity may be a proxy for hills that resisted weathering due to silicified regions in the bedrock and may be more prospective gold targets. This concept was based on the notable association of topographic highs with mineralised areas in the outcropping Pine Creek region to the east. However, in this instance, the HSVR passive seismic profile results did not image the basal unconformity due to the acoustic response (hardness) of the overlying limestone cover (upwards of 100m thick). In combination with the seismic survey, detailed gravity profiles (50m station spacing) were collected along the two lines at Fenton. 2D profiles will be forward modelled, incorporating historic down-hole structure and magnetic susceptibility data, to help constrain the geological structure of the Fenton region. Compilation, re-interpretation and re-processing of historic drilling and geophysical data is on-going. This has confirmed the folded antiformal architecture of the prospect, a key consideration given the association of gold deposits in the Pine Creek District with these structural positions further to the east. A detailed aeromagnetic grid was sourced from open file searches which provides an improved resolution of the response and structure at the Fenton prospect area. In addition, a regional scale Airborne Electromagnetic (AEM) survey (Rum Jungle TEMPEST survey by GA/NTGS) covers the Fenton prospect on wide spaced lines. Critical lines are being re-processed, to provide input to, and de-risk planned future programs. Modelling and interpretation of these data are on-going. The work completed to date has demonstrated that geophysics is a powerful exploration tool at Fenton, with current and future work designed to identify key structures which have the potential to host fluid pathways for gold mineralisation. The Shoobridge West applications EL33188 and EL33225 were both granted. These licences, along with Shoobridge East (EL32884), are close to Core Lithium's Shoobridge Lithium Project and are high priority targets for the 2023 exploration program. Both licences lie within the Tipperary Pegmatite district and are near the Shoobridge pegmatite field. The Shoobridge pegmatites have been exploited for their tin and tantalum, being the site of the first discovery of tin-bearing pegmatites in the NT in 1882 (Frater, 2005) and are considered analogous to those in the Bynoe pegmatite district. Now that the new licences have been granted, Lithium-focused mapping and sampling programme planning is underway. Initial reconnaissance field mapping and geochemical sampling programs comprising streams (125), rock chips (90) and soils (269) were completed over the eastern Pine Creek Project licences (Fenix) before the onset of the NT wet season. Rocks and soil samples were predominantly focused on gold exploration along the main Pine Creek Shear Zone, however 9 rocks were also collected and submitted for lithium analysis. A lithium focussed stream sediment sampling programme was conducted within ~3km of granite contacts, known as the "Goldilocks Zone". The "Goldilocks Zone" is a defined corridor in which Lithium- Caesium-Tantalum (LCT) pegmatites may exist. All samples were submitted to ALS in Perth for a combination of gold and/or multi-element analysis including rare earths as deemed appropriate. Analytical results are expected by the end of January. The Company's Directors have a track record of exploration success in Australia and overseas, most recently with the Bankan gold discovery in Guinea, West Africa. Directors Paul Roberts and Dr. Barry Murphy developed a targeting methodology which they have successfully applied to gold exploration in West Africa for over a decade. The Company is seeking to take advantage of this capability in relation to manganese exploration. Both Directors have an interest in manganese discovery predating the formation of DeSoto. In addition to its gold-lithium exploration programs in the Northern Territory and, as outlined in the
prospectus, the Company is undertaking project generation activities targeting manganese deposits in the tropics, as a core exploration focus.