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

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Original-Research: Desert Gold Ventures Inc. - from GBC AG

11.05.2026 / 08:00 CET/CEST

Dissemination of a Research, transmitted by EQS News - a service of EQS

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Classification of GBC AG to Desert Gold Ventures Inc.

Company Name: Desert Gold Ventures Inc.

ISIN: CA25039N4084

Reason for the research: Research Comment

Recommendation: Buy

Target price: 0.93 CAD

Target price on sight of: 31.12.2026

Last rating change:

Analyst: Matthias Greiffenberger, Cosmin Filker

Desert Gold Advances from Development Plan to Execution Phase at Barani East

The Barani gravity-plant update materially strengthens the investment case

by showing tangible progress toward first gold at Barani East. Desert Gold

has moved beyond planning and mobilization into active enabling works, with

approximately 52,000 square meters cleared across the process plant,

workshop and stockpile areas. Survey control has been established, initial

foundation excavation has started, and supporting infrastructure such as

fencing, access control and ancillary steel preparation is advancing.

The processing-plant update is especially encouraging. Technical acceptance

of the 200 tpd gravity plant, six-month spare-parts inventory and 650 kVA

generator was completed in China between March 25 and April 3, 2026. Desert

Gold representatives and independent engineers confirmed that the equipment

met contractual specifications and approved it for shipment. Six containers

carrying the plant and generator were shipped from Shekou and Qingdao as of

April 26, with delivery to Dakar expected by mid-June, site delivery

anticipated by late June, and commissioning targeted for mid-July 2026. In

simple terms, the most important equipment is no longer theoretical or

merely ordered; it has been inspected, accepted and shipped.

The revised timing is slightly later than the earlier mid-June go-live

assumption, but the update remains positive because execution visibility has

improved. A modest logistics-related delay is far less concerning than

uncertainty around whether the plant exists, whether it meets

specifications, or whether it can be shipped. The company has now given a

clearer sequence: equipment arrival at Dakar, delivery to site, installation

and commissioning.

Water development is another important derisking item. The company completed

a geophysical targeting program across 15 survey lines, identified 13

priority borehole targets, and has started drilling the first borehole, with

favorable hydrogeological conditions interpreted between 60 and 90 meters

depth. Water is critical because even a small processing plant needs

reliable supply to operate consistently. If water availability is

insufficient, throughput can be restricted, recoveries can suffer, and

operating downtime can increase. The progress is therefore meaningful,

although sustainable flow rates and water quality still need to be confirmed

before this risk can be considered largely resolved.

The gravity-plant update also supports the valuation logic behind Barani

East. The previous development case assigned significant value to the staged

gravity-plant concept because it offers a relatively low-capex route to

first production and potential internal cash generation. For a junior

company, this is important: internally generated cash flow can reduce

reliance on repeated equity financings, which are often dilutive to existing

shareholders. If Barani East commissions successfully and ramps up as

planned, Desert Gold could move into a stronger position where it can fund

more of its exploration and development pipeline from operating cash flow

rather than from the market.

The 4,250 m Phase 1 RC drill program adds a useful second layer to the

story, but it is more of a medium-term upside driver. The program targets

Koussili, Gourbassi West North, Mogoyafara South, Barani Gap and Kolon-Soa,

with the goal of expanding known mineralization, testing extensions and

advancing near-mine resource growth around the planned Barani East oxide

operation. The most relevant point is that drilling could identify

additional shallow oxide material near existing or planned infrastructure.

If successful, that could improve future mine-life flexibility and make the

Barani-centered development concept more robust.

Barani Gap and Kolon-Soa are the most directly relevant targets because they

could become near-mine or trucking-distance feed sources. Gourbassi West

North and Mogoyafara South support the broader SMSZ scale argument because

both already have resource context and are being tested for extensions.

Koussili adds corridor-extension potential north of Gourbassi West North.

Overall, the drill program helps keep the wider SMSZ growth story alive

without distracting from the near-term production push.

Overall, the combined news flow is positive and improves confidence in the

investment case. Barani East is visibly moving toward installation and

commissioning, with equipment accepted and shipped, site works underway and

a mid-July commissioning target confirmed. At the same time, the SMSZ drill

program provides additional resource and mine-life upside. The next key

milestones are water-supply confirmation, equipment arrival at site,

installation, commissioning, first gold and drill results. If these

milestones are delivered, Desert Gold should be increasingly difficult to

value as a pure explorer and more credibly viewed as an emerging producer

with meaningful resource growth optionality. We therefore confirm our Buy

rating and target price of CAD 0.93 per share.

You can download the research here:

https://eqs-cockpit.com/c/fncls.ssp?u=397a5829d5424505e329d1faf594ac95

Contact for questions:

GBC AG

Halderstraße 27

86150 Augsburg

0821 / 241133 0

research@gbc-ag.de

++++++++++++++++

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:

http://www.gbc-ag.de/de/Offenlegung

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Completion: 07.05.2026 (9:45 a.m. CEST)

First distribution: 11.05.2026 (8:00 a.m. CEST)

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2323494 11.05.2026 CET/CEST

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