Since discovering DeGrussa, Sandfire has remained steadfast in its conviction that the Doolgunna region has the potential to yield multiple further high-grade ore discoveries and has invested substantially to build its extensive tenement holding.
The Company’s Greater Doolgunna Project area has grown to include tenements initially explored in joint venture agreement with Talisman Mining Limited (ASX: TLM) hosting the Monty Copper-Gold Mine, which are now 100% owned by Sandfire, as well as tenements accessed via farm-in agreements with Enterprise Metals Limited (ASX: ENT), Great Western Exploration Limited (ASX: GTE), Auris Minerals Limited (ASX: AUR) and Alchemy Resources Limited (ASX: ALY), to form an aggregate contiguous exploration area of 6,588km2. Please click here for a map of the Greater Doolgunna Project.
The Company’s geological team, assisted by some of the world’s leading independent geological consultants, has confirmed that DeGrussa is a VMS deposit. It is well-established that this style of mineralisation generally forms in clusters and that VMS fields typically contain many clusters of deposits – often with resources totalling 40-50 million tonnes across the field or, in some cases, super-giant fields containing 100-200 million tonnes and more. Much of this stratigraphy is obscured beneath transported alluvium and requires systematic aircore (AC) drilling to test the bedrock geochemistry and identify prospective areas.
Monty Copper-Gold Mine
- In June 2015, a new high-grade VMS copper-gold discovery was made at the Monty Project, located 10km east of DeGrussa. The discovery at Monty is the first significant accumulation of high-grade copper-gold mineralisation to be identified outside of DeGrussa and represents a compelling breakthrough for our exploration team. A feasibility study was completed and on 30 March 2017 a mining lease was granted by the Western Australian Department of Mines and Petroleum paving the way for development of the Monty Copper-Gold Mine as a satellite underground mine to feed the DeGrussa Concentrator.
- Please click here for details of the Company's Mineral Resources, Ore Reserves and Mine Plan, including the Monty Copper-Gold Mine.
Enterprise Farm-In Tenements
- In October 2016, Sandfire entered into a farm-in agreement with Enterprise Metals Limited to earn up to 75% interest in tenements which cover 917km2 along the southern margin of the Bryah Basin and the northern part of the Yerrrida Basin.
Great Western Exploration Farm-In Tenements
- In April 2017 Sandfire entered into a farm-in agreement with Great Western Exploration Limited covering a tenement area of 1,525km2. Sandfire may initially earn up to 70% by delineating at least 50,000 tonnes in-ground copper Mineral Resource and has committed to a minimum exploration spend of $1.7 million over three years.
Auris Farm-In Tenements
- In February 2018 Sandfire entered into a farm-in agreement with Auris Minerals Limited and Fe Limited (ASX: FEL) for rights to earn an interest in a 390km2 tenement area. Sandfire may earn up to a 70% interest in relation to the Morck Well East JV Project (Auris 80%; Fe 20%) and Auris' 100% owned Doolgunna Project by delineating at least 50,000 tonnes in-ground copper Mineral Resource and completing a Feasbility Study. Sandfire has committed to an exploration spend of at least $2 million within the next two years.
Alchemy Farm-In Tenements
- In August 2018 Sandfire acquired Independence Group Limited's (ASX: IGO) farm-in rights with Alchemy Resources Limited to earn an interest in a 312km2 tenement area. Sandfire may earn up to 70% or 80% interest in the tenements after spending $3.1 million within 15 months to 28 October 2019.
Sandfire owns the only operating base metals processing plant in the region (the 1.5Mtpa DeGrussa Concentrator), putting the Company in an outstanding position to capitalise on new discoveries. Our exploration strategy for the Doolgunna-Bryah Basin region has been developed and enhanced over a number of years as we progressively refine our understanding of the intricacies of exploration in the district, underpinned by an aggressive A$20 million annual exploration budget.