Original-Research: Desert Gold Ventures Inc. (von GBC AG)

Classification of GBC AG to Desert Gold Ventures Inc.

Company Name :	Desert Gold Ventures Inc.
ISIN:	CA25039N4084
Reason for the research:	Management Interview
Recommendation:	Management Interview
Last rating change:
Analyst:	Matthias Greiffenberger, Cosmin Filker

Desert Gold Ventures CEO Jared Scharf on Unlocking the Full Potential of Mali’s SMSZ Project

West Africa’s gold belt has long been a hotspot for major discoveries, and Desert Gold Ventures’ SMSZ Project in Mali is shaping up to be something far bigger than just another deposit. With only 10% of its gold resources incorporated into its recent Preliminary Economic Assessment (PEA) and a strong projected IRR supported by a low all-in sustaining cost, the project is already showing the potential to become a multi-million-ounce mining camp. CEO Jared Scharf sees this as just the beginning, with a modular processing plant strategy enabling fast scalability, a pipeline of near-term oxide expansion opportunities, and exploration upside across more than 30 gold zones. In this conversation, Scharf shares how Desert Gold plans to leverage the current gold market cycle, balance near-term cash flow with long-term growth, and evolve into a leading player in the West African mining landscape.

 

GBC AG: Your PEA incorporates only 10% of the SMSZ Project’s gold resources. What’s the broader opportunity when you start tapping into the remaining 90%? Is this just the beginning for Desert Gold?

Jared Scharf: The broader opportunity stems not only from the additional million ounces of gold resources not yet included in the PEA, but also from the significant exploration upside not factored into the current 1.1 million-ounce resource. The SMSZ Project has over 30 open gold zones on the property, only five of which form part of the resource. The bigger picture is to develop a multi-million-ounce mining camp with several large open pits feeding one or possibly two major mining operations on the SMSZ property.

 

GBC AG: With a strong projected IRR of 34% and $71 million in after-tax cash flow, what do you see as the most exciting levers to further enhance the project’s economics?

Jared Scharf: The 34% IRR assumes a gold price of $2,500 per ounce. At the current gold price, the project IRR is over 50%. With an all-in sustaining cost (AISC) of roughly $1,350 per ounce, the project demonstrates tremendous leverage to the gold price while maintaining solid margins, even if prices pull back significantly. The most immediate opportunity is to incorporate additional brownfield exploration targets located near the Barani starter pit into the mine plan. I believe we could double or even triple the oxide resources in the area in the near term. This would have a significant positive impact on the project’s economics by boosting annual gold production and extending the mine life considerably before we transition to the Gourbassi mine.

 

GBC AG: The modular processing plant strategy is both cost-effective and flexible. How does this position Desert Gold to scale quickly and adapt to new discoveries?

Jared Scharf: With so many gold zones on the SMSZ property, having a plant that is movable yet capable of processing oxide, transition, and fresh rock material gives us maximum flexibility. It allows us to incorporate both existing gold zones and new discoveries into production quickly.

 

GBC AG: The Barani East permit allows for up to 36 kilotons per month of ore processing. What would it take to double production and how soon could that be realized?

Jared Scharf: As you can see from the PEA, the initial life of mine at 17 years is a bit long for a relatively small project. If we succeed in adding more oxide resources in the Barani area, we will seriously consider ramping up production to 36 thousand tonnes per month. This might shorten the mine life by a few years, but it would generate more cash flow earlier in the schedule, significantly boosting the project’s net present value (NPV), payback period, and IRR. Generating more cash flow sooner is always preferable.

 

GBC AG: How do you view the current global gold market and where do you think we are in the broader gold cycle? What does that mean for a company like Desert Gold?

Jared Scharf: Very good question. Broadly speaking, I expect the United States to enter another cycle of monetary easing. I believe lower interest rates are on the horizon, which is typically a major tailwind for gold. That said, gold has already had a solid run, so there could be some near-term downward pressure, but the medium- to long-term outlook has never been stronger in my view. I expect prices to move higher over the next several years.

In terms of gold equities, the majors, which are more liquid and widely held by investors, have already seen strong valuation gains. Some select developers and juniors have also performed well. However, valuations remain extremely low compared to historical levels, especially in the junior space. I believe we are still in the very early stages of a cyclical bull market in gold equities.

 

GBC AG: How does Desert Gold balance near-term production goals with long-term growth potential across your projects in Mali and Côte d’Ivoire?

Jared Scharf: These are not mutually exclusive initiatives. In fact, they are complementary. Exploration success at the SMSZ Project will directly enhance our mining plan for the reasons I have already mentioned. At the same time, diversifying our jurisdictional risk into Côte d’Ivoire provides our shareholders with both security and additional growth potential.

 

GBC AG: Looking three to five years ahead, what is your vision for Desert Gold and how do you see the company evolving in the West African mining landscape?

Jared Scharf: In three to five years, I envision the SMSZ Project producing gold from two or more open pits, with multiple drill rigs operating continuously to expand nearby gold zones. My hope is that once we get started, we simply won’t stop.

In Côte d’Ivoire, we plan to begin exploration immediately after this year’s rainy season, with a maiden drill program at our Tiegba Project. The goal there is to make a major discovery.

 

GBC AG: Jared, thank you for sharing your insights and vision for Desert Gold Ventures. We look forward to following the company’s progress as the SMSZ Project and your broader West African portfolio continue to advance.

Jared Scharf: Thank you. It’s been a pleasure to share our story, and I’m excited about what lies ahead for Desert Gold and our shareholders.

You can download the research here: 20250812_Desert_Gold_Ventures_Interview

Contact for questions:
GBC AG
Halderstraße 27
86150 Augsburg
0821 / 241133 0
research@gbc-ag.de
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Offenlegung möglicher Interessenskonflikte nach § 85 WpHG und Art. 20 MAR Beim oben analysierten Unternehmen ist folgender möglicher Interessenkonflikt gegeben: (5a,6a,7,11); Einen Katalog möglicher Interessenkonflikte finden Sie unter:
https://www.gbc-ag.de/de/Offenlegung
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Date of Completion: 12.08.2025 (11:00 pm)
Date of First Distribution: 13.08.2025 (8:00 am)