Sandfire Resources has reaffirmed its commitment to continue the Yerrida North joint venture in Western Australia with Great Western Exploration (GTE).
The joint venture between Sandfire and GTE has already reached the minimum expenditure commitment of $1.7 million over three years.
Yerrida Basin is believed to share many similarities to the Degrussa mine, with the basin’s potential boosted by Sandfire’s exploration activities.
GTE chairman Kevin Somes said the company had welcomed Sandfire’s offer to continue exploration.
“We are pleased to have Sandfire Resources continuing exploring under the joint venture agreement,” he said.
“The work done to increase the understanding of the Yerrida Basin is an important step towards identifying analogues of the DeGrussa geological setting.
“This provides further encouragement to continue exploring the region, with the aim and the potential of making further significant discoveries.”
With much of Yerrida Basin being unexplored prior to Sandfire’s involvement, the company has made significant progress in understanding the region.
Sandfire used a high resolution airborne electromagnetic survey and detailed geological mapping to study Yerrida, which has led to a number of key findings.
The mapping indicated that Yerrida not only was similar to the Degrussa mine setting, but that it also inherited the possibility of holding important regional structures that, according to GTE, may be “the first order controls” for the formation of Degrussa’s copper-gold mineralisation.
Sandfire aims to start surface geochemical surveys and prioritise areas for drill testing in the future.