Argonaut Resources (ASX: ARE) has advised that Sandfire Resources (ASX: SFR) has started the 2014 exploration program at the Alford tenement in South Australia’s Yorke Peninsula.
Argonaut had signed the farm-in agreement with Sandfire on 9 November 2012.
Aircore drilling is now underway targeting Induced Polarisation chargeability and gravity anomalies in the Alford East trend.
These anomalies are also within a large alteration system associated with basement geochemistry copper anomalies.
Alford is located within the Olympic Dam copper-gold province.
Sandfire had commenced the gravity survey in December 2013 and the IP chargeability survey in the New Year.
Alford Farm-in
Sandfire may earn a 49% interest in Alford by sole funding $4 million of exploration within three years.
In the first 14 months of the agreement, it has already met certain requirements and is progressing towards the first $4 million target.
If Sandfire meets the target, it then has the right to form a joint venture with Argonaut’s subsidiary Kelaray Pty Ltd to jointly explore the tenement or to proceed to earn an additional 26% by spending a further $4 million on exploration.
Alford Tenement
The Alford project is on South Australia’s Yorke Peninsula within the Olympic Copper-Gold Province that is host to Olympic Dam deposit, the Prominent Hill deposits and the Carrapateena deposit.
In addition, it is located 80 kilometres north of the Rex Minerals’ (ASX: RXM) Hillside Project.
The historic Moonta and Wallaroo mining district is immediately to the south of the Alford project area and is currently being actively explored.
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