Fe Limited (ASX:FEL) and Auris Minerals (ASX:AUR) have entered into an agreement with Sandfire Resources (ASX:SFR) in relation to their Morck’s Well East JV Project and Auris’ Doolgunna Project in Western Australia’s Bryah Basin.
Fe Limited holds a 20% interest in the Morck’s Well East JV Project along with Auris (80%) and is free carried until a decision to mine.
Tony Sage, chairman, said: "This is a win-win for all parties and we wish Sandfire all success in their upcoming drilling program."
Targeting a significant copper resource
Sandfire will pay $1.2 million to Auris and $300,000 to Fe Limited in shares or cash and will incur a minimum of $2 million in exploration expenditure within 2 years.
If Sandfire defines a resource of a minimum of 50,000 tonnes of contained copper (that has +50% in the indicated classification), then Sandfire may thereafter complete a feasibility study on that discovery.
If a discovery is made on Morck’s Well East JV Project and a feasibility study completed then the interests will be Sandfire 70%, Auris 24% and Fe Limited 6%.
Teaming up with a proven explorer
Morck’s Well East and Doolgunna Projects cover a portion of the Bryah Basin, that host both the DeGrussa and Monty high-grade copper deposits.
Importantly, Sandfire has already proved themselves to be a very successful explorer with both the DeGrussa and Monty discoveries.
Meanwhile, Fe Limited has received high-grade copper results from the first drill hole at the Kasombo Copper-Cobalt Project in the Democratic Republic of Congo.
Best result was 10 metres at 5.18% copper within a broader intersection of 23 metres at 3.18% from 54 metres in the lower zone.
Preliminary reverse circulation drilling has been completed at the Kasombo 5 and Kasombo 7 prospects with results expected soon.