en.Wedoany.com Reported - Sandfire Resources has commenced a major drilling campaign at the Kalkaroo copper-gold project in South Australia, with the first rig now on site, paving the way for the project's pre-feasibility study. Kalkaroo is one of Australia's largest undeveloped open-pit copper-gold deposits.

An additional six rigs are expected to arrive in the coming months to support a large-scale infill and extension drilling program. Kalkaroo hosts 100 million tonnes of ore reserves grading 0.47% copper and 0.44 g/t gold, along with 224 million tonnes of sulfide mineral resources grading 0.49% copper and 0.36 g/t gold. The project has access to the Barrier Highway, the Transcontinental Railway, energy infrastructure, groundwater, and a skilled workforce from Adelaide, Broken Hill, and surrounding communities.

Sandfire stated that initial progress has been made on the foundational work for the pre-feasibility study, which is planned to cost approximately $70 million and is expected to be completed in the second half of fiscal year 2028. Early work includes the construction of an 80-bed on-site camp and the advancement of core handling facilities.

This drilling program follows Sandfire's agreement with Havilah Resources in February this year. Under the agreement, Sandfire can earn up to an 80% interest in Kalkaroo through a two-stage earn-in structure. The transaction has been approved by Havilah shareholders, with Sandfire acquiring an 80% stake at a cost of approximately $117 million, including about $30 million in cash and over 4 million Sandfire shares. As part of the agreement, Sandfire has also committed to investing $30 million over two years in regional exploration through a strategic exploration alliance, focusing on unlocking the broader copper potential of the Curnamona Province.

Sandfire Managing Director Brendan Harris said the execution of the final transaction agreement gives the company the right to a controlling interest in a copper-gold resource and reserve that still has room for expansion along strike and at depth. Havilah Technical Director Chris Giles noted that Sandfire will provide the necessary funding and technical expertise to fully evaluate and develop the project at an optimal scale.