Australian base metals explorer Sandfire Resources (ASX:SFR,OTCQB:SRAFF) has entered into a third farm-in agreement Auris Minerals (ASX:AUR) to advance exploration at the company’s Cheroona project, in the Bryah Basin of Western Australia.
Highlights are as follows:
- Sandfire Resources has a right to earn a 70 percent interest in Cheroona project tenements (E51/1391, E51/1837 and E51/1838) on making a discovery of a minimum 50,000 tonnes contained copper (or metal equivalent) and completion of a feasibility study
- Auris interest within Cheroona project tenements currently 70 percent, due to existing joint venture with Northern Star Resources (ASX:NST,OTC Pink:NESRF) whom hold remaining 30 percent
- Sandfire must spend a minimum AU$1.2 million on exploration within first 12 months. Auris and NST interests are free-carried until earn-in is completed, at which time interests become 21 percent and 9 percent respectively
- Cheroona Project located immediately to the west along strike of Cashman JV, where Sandfire are currently aggressively exploring in the same stratigraphy that hosts the DeGrussa and Monty Cu-Au deposits
- Sandfire’s extensive regional expertise and funding capacity continue to provide an accelerated pathway to potential discovery at the underexplored Cheroona project
Mike Hendriks, CEO, commented:
We are very pleased to build on the relationship with Sandfire with the introduction of the Cheroona JV. Sandfire bring significant technical expertise and funding power to the table, that provides Auris shareholders with an accelerated pathway to a potential discovery.
Auris has an excellent working relationship with Sandfire through our existing Morck Well and Cashman joint ventures. The significant drilling programs completed and being planned within the joint venture areas reflects Sandfire’s commitment to thoroughly testing the prospective stratigraphy. This latest agreement is reflective of both the quality of exploration work completed to date and the potential upside this work has demonstrated.