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Sandfire Resources (ASX:SFR) and Havilah Resources (ASX:HAV) have come together in an $240 million exploration alliance to advance the Kalkaroo Copper-Gold Project and scout the “highly prospective” Curnamona province.
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Under the terms, Sandfire can earn an 80% interest in Kalkaroo through a two-stage structure, while Havilah pockets up to $210M in tranches.
Sandfire will also be committing a further $30M over the next 24 months to fund any exploration run under the alliance. This mainly covers Havilah’s wide tenement package in Curnamona, in northeastern South Australia. (The former can take 80% interest on discoveries by funding maiden drilling.)
“We’re thrilled,” Sandfire’s CEO and managing director, Brendan Harris, declared. “This decision to move into Curnamona is fully aligned with our strategy.”
Havilah’s technical director, Dr Chris Giles, said those on the other side of the Kalkaroo alliance were similarly happy, especially because it means the company can now complete a new prefeasibility study at the project.
“The funding under the exploration strategic alliance will allow us to accelerate regional exploration in South Australia with the objective of transforming the highly prospective Curnamona Province into Australia’s next major copper province, centred on the Kalkaroo project development,” he explained.
Kalkaroo currently hosts an Ore Reserve of 100 million tonnes grading at 0.47% copper and 0.44 grams per tonne gold. That haul is supported by a sulphide resource of 224 million tonnes grading 0.49% copper, 0.36g/t gold.
The Market Link understands there’s still some red tape to get through for this alliance, too, including shareholder approval and regulatory consents.
Heading into today, SFR is selling at $16.45/sh. HAV shares are 27c each.
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