The cash-flows generated by the DeGrussa Copper-Gold Mine provide Sandfire with a strong platform from which to grow, both organically through exploration and through business development initiatives aimed at developing a long-term growth pipeline both in Australia and internationally.
The Company’s core growth focus is the Greater Doolgunna Project area in the Doolgunna-Bryah Basin region of Western Australia, where Sandfire continues to progress a tightly focused, multi-disciplined exploration program to test for extensions to the known cluster of VMS (volcanogenic massive sulphide) deposits at DeGrussa and Monty to unlock the potential for additional VMS discoveries.
Following a series of acquisitions and joint venture agreements, Sandfire’s Greater Doolgunna Project tenement area now comprises 6,588km2. The Company has an annual exploration budget of A$20 million allocated to the Greater Doolgunna Project.
Across the rest of Australia, Sandfire, under its Regional Exploration Division, is pursuing new growth opportunities through a series of low-risk, low-cost farm-in joint ventures – each with the potential to deliver a major new discovery. The Company has an annual exploration budget of A$10 million for its Australian regional exploration projects.
Internationally, Sandfire continues to broaden its opportunities. In North America, Sandfire, through its 78% owned affiliate, Sandfire Resources America Inc (TSX.V: SFR), is continuing to make strong progress in advancing the Black Butte Copper Project, located in central Montana, USA.
Beyond this, Sandfire is also pursuing growth and business development initiatives internationally through the acquisition of cornerstone shareholdings in emerging junior resource companies with highly attractive base metals exploration projects under the "Sandfire Ventures" strategy. Sandfire Ventures strategic interests in companies with prospects accross the globe include:
- Investment in metals exploration company Adriatic Metals Plc (ASX: ADT) and formation of a strategic partnership under which Adriatic will have access to Sandfire's significant technical expertise to advance Adriatic's high-quality exploration and development portfolio in Bosnia Herzegovina.
- Cornerstone investment in White Rock Minerals (ASX: WRM) and formation of a strategic partnership under which Sandfire and White Rock will collaborate to advance the development of White Rock's high-grade Red Mountain Zinc VMS Project in Alaska, USA.
A strategic interest in unlisted exploration company, Andes Resources Ltd (Andes), also agreeing to form a Technical Committee under which Andes will have access to Sandfire’s technical expertise to develop its Andes Project. The majority of the project, which is prospective for gold and copper, lies within the municipalities of Andes, Jardin, Betania & Bolivar in the department of Antioquia, Colombia.