Sandfire Resources Limited (ASX: SFR) has announced that it will withdraw from the Sesmarias prospect in Portugal after assay results from the 2024 drilling program did not meet the company’s technical criteria. As a result, Sandfire will transfer its interest in the project back to its joint venture partner, TSX-listed Avrupa Minerals, subject to regulatory approvals.
The Sesmarias prospect is part of the Alvalade Joint Venture, located within the Iberian Pyrite Belt, approximately 80km southeast of Setúbal. Sandfire’s subsidiary, Sandfire Mineira Portugal, entered an option agreement with Avrupa in 2019, allowing it to earn up to an 85% interest in the project through a staged process. At the time of its withdrawal, Sandfire held an indirect 51% stake.
Sandfire Chief Executive Officer and Managing Director, Brendan Harris, stated that the decision reflects the company’s disciplined approach to exploration. He noted that while the drilling program identified mineralised massive sulphide intersections, the results did not justify further investment.
Following its exit from the joint venture, Sandfire’s exploration team in Portugal will focus on its 100%-owned tenure package within the Portuguese Iberian Pyrite Belt, Harris expressed appreciation for the collaboration with Avrupa Minerals and wished the company success in its future exploration efforts.
