Sandfire Resources has commenced aircore drilling at Alchemy Resources’ Bryah Basin project in the Gascoyne region of Western Australia.
The drilling is part of Sandfire’s farm-in commitment to support Alchemy’s project, which is adjacent to the former’s existing De Grussa copper-gold mine.
Sandfire is spending $3.1 million to earn a joint venture (JV) interest in the prospective tenement area. It can earn up to 80 per cent in Alchemy’s interest by spending $3.1 million on exploration by October 28 this year.
The companies reached an agreement on Bryah Basin in August 2018 after Sandire had acquired existing farm-in rights on the project from Independence Group.
“Sandfire has unequalled knowledge and information on De Grussa-style mineralisation and are fully incentivised to find another major copper-gold deposit in the district,” said Alchemy managing director Leigh Ryan.
“This is a very exciting time for Alchemy and we’re looking forward to a steady flow of drilling results over the next few months.”
Sandfire produced a record net profit of $123 million last year, which was partially driven by De Grussa’s strong production.
The first phase of drilling at Bryah Basin will comprise 1000 holes at a spacing of 1600 metres by 100 metres, with an additional 1000 holes approved for phase two following the identification of mineralisation in the region.
Sandfire has also been progressing its Morck Well JV with Auris Minerals in the same region. One diamond drill and eight reverse circulation (RC) holes had been completed at the site for a total spend of $9.4 million.