# Desert Gold Delivers Positive PEA for SMSZ Project with USD $24M After-Tax NPV \(10%\) and 34% IRR at USD $2,500/oz Gold for Barani and Gourbassi Deposits in Mali Canonical Atlas analysis: https://atlas-staging.minestarters.com/news/desert-gold-delivers-positive-pea-for-smsz-project-with-usd-24m-after-tax-npv-10--684badcd-ae80-4eea-ae03-6fa1549134ac Original source: https://money.tmx.com/en/quote/DAU/news/5171713822819769/desert-gold-delivers-positive-pea-for-smsz-project-with-usd-24m-after-tax-npv-10 Publisher: tmx Original announcement: 2025-08-07T09:30:00.000Z Analysis by Minestarters Atlas Atlas analysis published: Unknown date Atlas analysis updated: Unknown date - Company: Desert Gold Ventures Inc. - Ticker: DAU - Exchange: TSX - Region: Mali - Primary commodity: Gold - Secondary commodities: None reported - Document categories: Production, Resource update, Metallurgy - Extracted: 2026-08-23 06:42:53 UTC Narrative sentiment: 0.80 · Bullish ## Minestarters Atlas summary Desert Gold Ventures has announced a positive maiden Preliminary Economic Assessment for its SMSZ Gold Project in Mali, outlining a low-capex open-pit oxide mining operation. The PEA projects an after-tax NPV\(10%\) of $24 million and an IRR of 34% at a $2,500/oz gold price, with a 17.4-year mine life and 97,600 ounces of recovered gold. The study highlights a modular plant design, low initial capital costs, and significant upside potential from over 1 million ounces of gold resources not yet included in the current mine plan. Reasoning: The maiden Preliminary Economic Assessment demonstrates positive economics for the SMSZ Project with a $24M after-tax NPV\(10%\) and 34% IRR at $2,500/oz gold, supported by a low-capex, modular open-pit operation and significant upside potential from unincluded resources, despite being an early-stage study with Inferred resources. - Positive factor: Positive after-tax NPV of $24M and IRR of 34% at base case gold price. - Positive factor: Low initial capital expenditure of $15M due to modular plant design. - Positive factor: Long mine life of 17.4 years with projected total gold production of 97,600 ounces. - Positive factor: Significant upside potential from over 1 million ounces of gold resources not included in the current PEA. - Positive factor: Free-milling gold mineralization with no significant refractory or preg-robbing behavior identified. - Negative factor: The PEA is an early-stage study and includes Inferred Mineral Resources, which are considered geologically uncertain. Low confidence — this extraction should be reviewed alongside the original source. Facts used in scoring: 21 ## Classification and evidence **Maiden Resource** Polarity: neutral Definition: First formal MRE for the project — establishes baseline but typically exploration-stage with high Inferred component. Why it applies: The document announces the results of its maiden Preliminary Economic Assessment. Evidence · text > maiden Preliminary Economic Assessment **PEA-Supporting** Polarity: neutral Definition: Resource estimate prepared to support a Preliminary Economic Assessment — early-stage study. Why it applies: The entire document is a Preliminary Economic Assessment for the SMSZ Project. Evidence · text > Preliminary Economic Assessment **QP/CP Signed** Polarity: positive Definition: Qualified Person \(QP\) or Competent Person \(CP\) named and signed off — a member of a recognized professional association \(e.g., AusIMM, SME, AIG, P.Geo\) with relevant experience. Why it applies: The technical content was prepared and reviewed under the supervision of Mr. Daniel \(Daan\) van Heerden, a Qualified Person, and reviewed and approved by Ty Magee, also a Qualified Person. Evidence · text > Mr. Daniel \(Daan\) van Heerden \(B Eng \(Min.\), MCom \(Bus. Admin.\), MMC, Pr.Eng. \(Reg. No. 20050318\), FSAIMM \(Reg. No. 37309\), AMMSA\), a Director with Minxcon who is a Qualified Person \(QP\) as defined by NI 43-101 and independent of Desert Gold Ventures Inc. The scientific and technical information contained in this news release has been also reviewed and approved by Ty Magee \(M.Sc., P. Geo\), a Qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects. **NI 43-101 Compliant** Polarity: positive Definition: Resource estimate prepared in compliance with NI 43-101 \(Canada\) — high reporting standard. Why it applies: The PEA and MRE were prepared in accordance with definitions and guidelines set out by CIM, as adopted by reference under National Instrument 43-101. Evidence · text > prepared in accordance with the definitions and guidelines set out by the Canadian Institute of Mining, Metallurgy and Petroleum \(CIM\), as adopted by reference under National Instrument 43-101 - Standards of Disclosure for Mineral Projects. **Inferred Resource** Polarity: negative Definition: Speculative category — limited drilling, geological continuity assumed but not confirmed. Cannot support economic studies alone. Why it applies: The PEA is an early-stage study that includes Inferred Mineral Resources, which are considered too geologically uncertain. Evidence · text > This Preliminary Economic Assessment \(PEA\) is an early-stage study that includes Inferred Mineral Resources. These resources are considered too geologically uncertain to support economic evaluations that would allow them to be classified as Mineral Reserves. **Cut-off Disclosed** Polarity: positive Definition: Cut-off grade used for resource reporting is clearly stated, enabling like-for-like comparison. Why it applies: The current cutoff grade for reporting the Mineral Resource Estimate \(MRE\) is 0.2 g/t Au. Evidence · text > The current cutoff grade for reporting the Mineral Resource Estimate \(MRE\) is 0.2 g/t Au. **Free Milling** Polarity: positive Definition: Simple, clean ore amenable to standard processing without oxidation. Why it applies: The deposits demonstrate free-milling gold mineralization suitable for gravity recovery followed by carbon-in-leach \(CIL\) processing. Evidence · text > all of which demonstrate free-milling gold mineralization suitable for gravity recovery followed by carbon-in-leach \(CIL\) processing. **Bench Scale Only** Polarity: negative Definition: Only preliminary bench tests completed — no locked-cycle or pilot work. Why it applies: Metallurgical test work consisted of preliminary bottle roll and gravity recovery tests. Evidence · text > Preliminary bottle roll and gravity recovery tests, combined with regional analogues, indicate an average gold recovery of 86% ## Extracted facts Stored fact records: 0. Some facts used in scoring do not have a stored record. No stored fact records are available for this extraction. ## How Atlas produces this analysis Minestarters Atlas uses automated extraction to summarize mining announcements, identify reported measurements, and classify supporting evidence. Sentiment reflects the extracted narrative and classification rules; it is an interpretation, not a reported measurement. Evidence quotes and context are provided where available. Missing data, low-confidence results, and review flags indicate limitations. Check the original publisher announcement before relying on an interpretation.