Great Western Exploration Ltd (ASX:GTE) has welcomed confirmation from Sandfire Resources Ltd (ASX:SFR) that it is continuing with the Yerrida North Joint Venture, having reached the minimum expenditure commitment of $1.7 million over three years.
The geology of the Yerrida basin in WA's Mid-West had been poorly understood due to the lack of historical exploration.
To better understand the region, Sandfire has made a substantial investment in completing an extensive high resolution airborne electromagnetic (airborne EM) survey and detailed geological mapping.
Great Western believes that this work has significantly upgraded the prospectivity of the region, indicating that the Yerrida geology has many similarities to the setting of Sandfire's DeGrussa mine, which is nearby.
Additionally, the area has the potential to contain important regional structures that may be the first-order controls for the formation of the DeGrussa copper-gold mineralisation.
“Provides further encouragement”
GTE executive chairman Kevin Somes said: “We are pleased to have Sandfire Resources continuing exploring under the Joint Venture Agreement.
“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.”
Sandfire is continuing to compile and interpret the geophysical and geological data and plans to begin surface geochemical surveys over areas of interest in order to identify and prioritise areas for drill testing.
Under the terms of the JV Sandfire can earn a 70% interest by sole funding exploration to define a mineral resource of at least 50,000 tonnes of contained copper or copper-equivalent under the JORC 2012 code.