20/12/2013 - 11:31

Sandfire, Talisman ink farm-in deal

20/12/2013 - 11:31

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Shares in Talisman Mining have soared after Sandfire Resources agreed to farm into the explorer's copper-gold projects in the Bryah Basin.

Sandfire, Talisman ink farm-in deal

Shares in Talisman Mining have soared after Sandfire Resources agreed to farm into the explorer's copper-gold projects in the Bryah Basin.

Sandfire can earn up to a 70 per cent interest in Talisman's Springfield, Halloween and Halloween West projects if it invests $15 million in exploration over five and a half years.

Its minimum spending commitment under the deal is $5 million within two years.

Sandfire managing director Karl Simich said the agreement provided the miner with a low-risk opportunity to evaluate further prospects near its DeGrussa mine.

"We will be able to bring our considerable geological and technical expertise, as well as our funding capability, to the exploration of Talisman's high quality ground position in the Bryah Basin which contains extensions of the prospective stratigraphy that hosts the DeGrussa VMS deposits," he said.

"This complements and enhances our ongoing exploration campaign within the DeGrussa mine corridor and across our broader Doolgunna tenement, where we have an annual budget of $20 million targeting new discoveries and extensions to our existing deposits."

Sandfire announced in October it would farm into Ventnor Resources' Thaduna/Green Dragon copper project as the miner looks to bolster its position in the region.

Talisman shares closed the day's trade 33 per cent higher at 14 cents.

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