Sandfire Resources has reached agreement to acquire an interest in WCB Resources, a Toronto-listed, PNG-focused copper-gold explorer, by subscribing for all shares on offer in an Aus$5.9 million private share placement.
Proceeds from the placement will be used to progress exploration, including upcoming drilling programs, at WCB’s Misima Copper-Gold Project. WCB is earning a 70% interest in this project through a joint venture with Pan Pacific Copper, an integrated copper mining and smelting company jointly owned by JX Nippon Mining & Metals Corporation and Mitsui Mining & Smelting Company.
This investment provides Sandfire with exposure to a potential tier-1 porphyry copper-gold exploration opportunity with outstanding upside. WCB has identified a substantial copper-gold porphyry target at Misima, adjacent to an historical gold mine formerly owned by Placer Dome Asia Pacific which produced 4 million ounces of gold and 20 million ounces of silver.
The main exploration target is the Misima porphyry at Mt Sisa, where a very large 1sqkm copper soil anomaly coincides with extensive rock chips, shallow drilling and a deep strong magnetic anomaly with skarn mineralization and halo veining at surface. WCB plans to undertake diamond drilling later this year to test this target.
Misima is within a porphyry belt which contains four of the world’s richest primary grade copper and gold porphyries including Grasberg, Ok Tedi, Golpu and Panguna.
The investment opportunity was identified by Sandfire’s Business Development Team as part of its ongoing search for quality projects in Australia and overseas to build a pipeline of future organic growth opportunities. It is also consistent with the company’s strategy of seeking to foster and develop long-term strategic relationships with raw material end-users and traders globally.
Sandfire director John Evans, who led the discovery and drill-out of the DeGrussa copper-gold deposit in Western Australia, says Misima is an exceptional exploration opportunity for the discovery of a major porphyry copper-gold deposit in a location with a strong history of mining and development. “Opportunities of this nature are very rare and Sandfire is pleased to be able to participate in such a wonderful opportunity for our shareholders.”
www.sandfire.com.au or www.wcbresources.com