- Sandfire Resources (SFR) has completed drilling at the Sam’s Creek Gold Project in New Zealand, as Auris Minerals (AUR) prepares to take over the project
- Auris is currently acquiring Sandfire’s interest in the gold project and recently executed a share purchase agreement for Sandfire’s subsidiary to sell its shares to Auris
- As part of the deal, Sandfire funded the latest round a drilling
- Drilling was undertaken across two prospects at Sam’s Creek to follow up on high-grade intersections and use the results to update the project’s mineral resource
- Auris is trading flat at 8.9 cents, and Sandfire Resources is up 8.32 per cent with shares trading at $5.60
Sandfire Resources (SFR) has completed drilling at the Sam’s Creek Gold Project in New Zealand, as Auris Minerals (AUR) prepares to take over the project.
Last year, Auris entered a binding term sheet with Sandfire to acquire the project by purchasing wholly-owned subsidiary Sams Creek Gold.
However, there are still some conditions to be satisfied before the acquisition can be formally completed. These include obtaining regulatory approvals and an extension of an exploration permit which Sandfire owns an 80 per cent interest in under a joint venture with OceanaGold.
For the permit to be extended, Sandfire is spending $600,000 on exploration before the permit expires on March 26, 2021.
Sandfire drilled seven diamond holes across the Main Zone Resource and SE Traverse prospects within the Sam’s Creek Gold Project.
Of these, three hole, for 538.8 metres, were drilled at the Main Zone Resource to test alternative geological models and continuity of high-grade intersections.
Pleasingly, all three holes intersected the dyke which contained multiple sulphide veins. The downhole dyke thickness ranged from between 52 to 85 metres and had a true thickness of about 50 metres.
Results include three metres at 2.32g/t gold from 137 metres including one metre at 5.46g/t gold from 137 metres, and 28.5 metres at 1.09g/t gold from 91.5 metres including eight metres at 2.09g/t gold from 105 metres.
Once drilling at the Main Zone Resource wrapped up, Sandfire drilled four holes at the SE Traverse prospect to test the potential continuity of previously intersected high-grade mineralisation.
Drill samples from the SE Traverse prospect have been sent for assaying with results expected before the end of this month.
“We are confident that this program will provide our team with the geological
understanding needed to update the existing Sam’s Creek JORC Resource which remains open at depth and along strike,” Auris Minerals Managing Director Mike Hendriks said.
Once all results have been received, Sandfire and Auris will update the Sam’s Creek Gold Project’s mineral resource estimate which currently sits at one million ounces at 1.54g/t gold.
“With only a small extent of the Sam’s Creek strike tested so far, we believe there
remains significant exploration upside at the project,” Mike concluded.
In relation to the Sam’s Creek transaction, Auris has now executed a share purchase agreement with Sandfire for the sale of shares in Sandfire’s subsidiary, Sams Creek Gold, to Auris.
Auris is trading flat at 8.9 cents at 2:34 pm AEDT, while Sandfire Resources is up 8.32 per cent with shares trading at $5.60 at 2:44 pm AEDT.