Fresh off results which signposted Desert Metals’ Innouendy as an emerging critical minerals discovery, investors have shouted their support for the rare earths explorer from the rooftops by bankrolling a $2.5 million capital raising.

The Canaccord Genuity-led placement to sophisticated and professional investors will be directed towards Desert Metals’ (ASX:DM1) exploration activities at Innouendy, with a 10,000-20,000m follow up aircore program planned to test the strike extent and grow the mineralised footprint.

Desert has so far confirmed high grade, rare earth mineralisation across a strike of at least 21km and widths of 2.5km.

Intersections from recent drilling included some stellar grades of total rare earths oxides, including:

  • 20m at 2318ppm from 16m, hole INAC027
  • 20m at 1834ppm from 20m, hole INAC083
  • 29m at 1371ppm from 28m (incl 16m at 1829 ppm, incl 4 at 2589 ppm), hole INAC310
  • 16m at 2059ppm from 32m, hole INRC012; and,
  • 19m at 1373ppm from 8m, hole INACO90.

Incredibly, assays for another 4000m of drilling from that 12,745m program are still to be returned from the labs, meaning there will likely be more success.

A significant PGE intercept of 4m at 1.19g/t platinum, palladium and gold will also be followed up.

Where is Desert Metals looking next?

The aforementioned 10,000-20,000m aircore program at the 100% owned Innouendy project, 700km north of Perth, is set to start shortly to continue to define the emerging rare earths discovery.

Of note is the high degree of high value magnet rare earths oxides, key commodities for the transition to EVs and renewable energy in wind turbines.

So far 80% of holes assayed have returned grades above 300ppm, with 22.96% of those intercepts composed of magnet rare earths like neodymium and praseodymium.

A significant program of leachability assays, ore characterisation and met test work is also planned to advance the economic parameters for the rare earths find.

Drilling is also planned at the rare earths trend on Desert’s ground at the Dingo Pass project, where neighbour Krakatoa Resources announced a recent REE discovery on adjacent ground which appears to trend onto the Dingo Pass lease.

DM1 will issue 9,259,260 new shares at 27c a pop, already in the money this morning with the company’s stock up 6.6% to 32.5c.




This article was developed in collaboration with Desert Metals, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.