The Doolgunna Projects are located approximately 150km north-east of Meekatharra in the northern Murchison Goldfields region of Western Australia.
Talisman has two projects in its Doolgunna portfolio – the Springfield and Halloween West JV projects – all of which are prospective for VMS-style copper-gold mineralisation. The tenements are located immediately adjacent to Sandfire Resources’ DeGrussa Copper-Gold Project, which is one of the Asia-Pacific region’s premier, high-grade copper mines.
The DeGrussa Mine has been in production since October 2012 and hosts a current Mineral Resource (net of depletion) of 10.7 million tonnes grading 4.5% copper and 1.8g/t gold (as at 31/12/2015) within four deposits.
The strength, size and grade of the DeGrussa Volcanogenic Massive Sulphide (VMS) system support Talisman’s view that the exploration potential of the Company’s Doolgunna projects –particularly the Springfield Project which is located just 4km to the east of the DeGrussa deposits – is very high.
In December 2013, Talisman Mining and Sandfire Resources entered into an agreement which granted Sandfire the right to farm into Talisman’s Springfield and Halloween West Projects. Please read the announcement here for more details.
Under the terms of the agreement, Sandfire sole funded up to $15 million in exploration expenditure to earn up to a 70% interest in the projects.
As announced in Talisman’s ASX release on 17 December 2015, Sandfire reached the $15 million expenditure threshold and an unincorporated Joint Venture has been formed between Talisman and Sandfire. Formal transfers of Sandfire’s 70% interest in the Joint Venture has been completed.
Talisman holds a 30 per cent contributing interest in the Doolgunna Projects (including the Springfield Project) with Sandfire holding a 70 per cent interest and managing the Joint Venture.
Talisman’s Doolgunna Copper-Gold Projects subject to the Joint Venture with Sandfire overlaid on interpreted DeGrussa Mine Corridor and regional geology.
Between January 2010 and December 2013, Talisman invested more than $20 million exploring its Doolgunna Projects. During this time, it assembled a comprehensive knowledge base which has facilitated the identification of a series of high-quality copper-gold exploration targets, especially across the Springfield Project and within the interpreted extension of the DeGrussa Mine Corridor (see Figure above).
Leveraging off the comprehensive dataset compiled by Talisman, Sandfire has embarked on a multi-pronged exploration program aimed at finding more VMS deposits to extend the mine-life of their DeGrussa operation. This has resulted in the identification of a combined 65km strike length of prospective VMS horizon across the combined Talisman and Sandfire tenements, providing a significantly expanded search horizon for potential new VMS deposits.
In June 2015, diamond drilling at Monty, which forms part of the Springfield Project, returned an outstanding intersection of 16.5m @ 18.9% copper and 2.1g/t gold from 409.5m down-hole – representing the first significant intersection of high-grade copper-gold mineralisation to be discovered outside of the known lenses of VMS mineralisation at DeGrussa.
Follow-up drilling returned further encouraging results, eventually resulting in the maiden Mineral Resource estimate for the Monty Deposit. Find out more about the Springfield Project.