Desert Gold Provides Update on Barani East Gold Project Site Development Activities
Desert Gold moves toward production with C$7.1 million war chest as Barani East site work commences
The most recent news (February 11, 2026) provides an operational update on the Barani East gold project in Mali. The company has moved into the construction stage, focused on site preparation and infrastructure to support a modular gravity processing plant. This plant has an initial capacity of 10 tonnes per hour (tph), with the design capability to expand to 50 tph. This update follows the February 10, 2026, announcement that Desert Gold closed a fully subscribed LIFE (Listed Issuer Financing Exemption) offering, raising C$7,181,800 at C$0.08 per unit. This financing was upsized from an initial C$5 million target, indicating strong investor demand.
- Financial De-risking: The closure of the C$7.18 million financing is the primary driver of materiality. Prior to this, the September 30, 2025, financials showed a cash balance of only C$791,288 and a working capital deficit. The new capital provides the necessary runway to commission the Barani East plant and fund exploration in Cote d’Ivoire.
- Transition to Producer: The procurement of a modular plant marks a shift in the company's business model from pure exploration to a "staged development" producer. However, the company explicitly warns that this decision is being made without a feasibility study or Mineral Reserves, which increases the risk of economic failure.
- Operational Scalability: The ability to scale the plant from 10 tph to 50 tph provides a low-CapEx path to increasing cash flow if initial production is successful.
- Jurisdictional execution: Moving to construction in Mali during a period of high gold prices (PEA used $2,850/oz) is timely, but remains subject to regional geopolitical risks.
Desert Gold Ventures is a gold exploration and development company focused on West Africa. - Flagship Project: The SMSZ (Senegal Mali Shear Zone) Project in Mali, covering 440 sq km. - Barani East: The lead deposit within SMSZ, currently under construction. It is a low-CapEx, open-pit oxide project. - SMSZ PEA (Nov 2025): Projected a 10-year mine life, 11,400 oz average annual production, and an after-tax NPV (10%) of $61 million using a $2,850/oz gold price. - Tiegba Project: A secondary 297 sq km project in Cote d'Ivoire acquired via option in 2025, located near the Bonikro-Agbaou mine complex.