DeSoto Resources Explores Manganese Carbonate at Dom Silverio Project
DES (DES) Share Update December 2024 Wednesday 11th
DeSoto Resources Unveils Manganese Carbonate Potential at Dom Silverio
DeSoto Resources Limited (ASX: DES) has announced the commencement of exploration programs at its Dom Silverio Manganese Project in Minas Gerais, Brazil, emphasizing the potential for manganese carbonate.
Instant Summary:
- Exploration programs initiated at Dom Silverio in Brazil.
- Sampling from stockpiles and 14km of manganese strike.
- Foreign Estimate: 61.8Mt @ 21.1% Mn oxide and 37.2Mt @ 20.7% Mn carbonate.
- Metallurgical test work to produce battery-grade manganese sulphate.
- Brazil's EV market growth supports manganese demand.
Exploration and Sampling
DeSoto Resources has commenced exploration at the Dom Silverio Manganese Project, which is located in the mineral-rich region of Minas Gerais, Brazil. The project is focused on evaluating the potential of manganese carbonate, a material that could be pivotal in the production of battery-grade manganese sulphate.
The company is actively sampling from existing stockpiles and areas of identified mineralization, spanning over 14 kilometers of manganese strike. This initiative is part of a broader strategy to assess the viability of manganese carbonate as a cost-effective feedstock for electric vehicle (EV) battery production.
Potential and Market Context
The Dom Silverio project boasts a foreign estimate of 61.8 million tonnes of manganese oxide at 21.1% and 37.2 million tonnes of manganese carbonate at 20.7%. Although these estimates are not yet classified under the JORC 2012 Code, they provide a promising foundation for further exploration and development.
DeSoto Resources is conducting metallurgical test work to develop a process for producing high-grade manganese concentrates. This includes mineralogical analysis and benchtop studies to determine the most efficient and low-cost methods for converting raw manganese into battery-grade sulphate.
Strategic Importance
Brazil, where Dom Silverio is located, is rapidly becoming a hub for EV manufacturing, with companies like BYD and Great Wall Motor planning to establish production facilities. This aligns with Brazil's strategic initiatives, including import taxes on electric vehicles, to encourage local manufacturing.
The growing demand for manganese-rich battery chemistries, driven by the global shift towards EVs, positions the Dom Silverio project as a potentially significant player in the supply chain for battery materials.
The announcement of manganese carbonate potential at Dom Silverio could positively impact DeSoto Resources' stock, given the strategic importance of manganese in EV battery production. The project's location in Brazil, a burgeoning EV market, further enhances its attractiveness to investors.
Investor Reaction:
Analysts are likely to view the announcement favorably, given the increasing demand for battery-grade manganese. However, the lack of JORC-compliant resources might temper some enthusiasm until further validation is achieved.
Conclusion:
Investors should keep an eye on DeSoto Resources' progress in exploration and test work at Dom Silverio. The project's potential to supply manganese for the growing EV market could represent a significant opportunity. Continued updates on exploration results and metallurgical advancements will be crucial for assessing investment potential.