JOHANNESBURG (miningweekly.com) – Copper/gold miner Sandfire Resources has agreed a right to earn into junior explorers Auris Minerals and FE Limited’s (FEL’s) Morck’s Well East joint venture (JV) project, as well as into Auris’ fully-owned Doolgunna project, in Western Australia’s Bryah basin.
In terms of the agreement, announced on Tuesday, Sandfire has the right to farm into five exploration tenements located in the eastern portion of the Bryah basin, where the larger company already own the DeGrussa and Monty deposits.
Sandfire will pay $1.2-million to Auris and $300 000 to FEL in shares or cash for the right to earn into the projects. The company also has to incur a minimum of $2-million in exploration expenditure in two years.
Once it has reached the minimum spending threshold, Sandfire could elect to sole fund exploration. The company could proceed to a feasibility study should it define a mineral resource of at least 50 000 t of contained copper.
If a discovery is made on the Doolgunna project and a feasibility study is completed, then Sandfire will own 70% and Auris 30%. If a discovery is made on Morch’s Well East JV project, then Sandfire will own 70%, Auris 24% and FEL 6%.