Sandfire and Havilah Sign Binding Term Sheet for Kalkaroo Copper-Gold Project

Strategic Alliance to Advance Kalkaroo Copper-Gold Project

Canadian mining company Sandfire Resources has partnered with Havilah Resources to fast-track the Kalkaroo copper-gold project in South Australia. The binding term sheet sets a two-stage earn-in agreement, allowing Sandfire to earn up to 80% of the project. In the first phase, Sandfire will invest A$105 million (US$68.61 million), with 70% in scrip and 30% in cash. This investment aims to accelerate the project’s development.

Sandfire’s commitment includes an additional A$105 million (C$96.39 million) upon the completion of a new Pre-Feasibility Study (PFS). The study will focus on updating resource estimates and expanding the Kalkaroo orebody. Kalkaroo is one of Australia’s largest undeveloped open-pit copper-gold deposits, holding a current ore reserve of 100 million tonnes (mt) at a copper grade of 0.47% and a gold grade of 0.44 g/t.

Exploration Alliance to Unlock Curnamona Province’s Potential

Sandfire will also invest A$30 million in regional exploration across Havilah’s Curnamona Province tenements. This exploration alliance aims to uncover new copper-gold discoveries in the region. The partnership combines Sandfire’s expertise in mine design and project development with Havilah’s deep geological knowledge of the province.

Havilah’s technical director, Chris Giles, highlighted the immediate benefits of the agreement. He noted the upfront payment and the direct stake Havilah gains in Sandfire’s global mining operations. Furthermore, Havilah retains a 20% interest in the Kalkaroo project, providing long-term exposure to its success.

SuperMetalPrice Commentary:

The Kalkaroo copper-gold project stands at a critical juncture, with significant capital investment and exploration activities planned. The partnership between Sandfire and Havilah signals confidence in the region’s potential, particularly with the commitment to a detailed PFS and the ongoing exploration of the Curnamona Province. For investors, this collaboration offers exposure to both short-term development milestones and long-term exploration upside, particularly if further resource expansions are confirmed. The project’s strategic location in South Australia—a jurisdiction known for its robust infrastructure and skilled labor—also reduces operational risks, making Kalkaroo an increasingly attractive asset in the global copper sector.