Sandfire Resources (ASX:SFR) will abandon drilling at a Portuguese diamond site after assay results from its 2024 drilling program failed to meet the necessary technical requirements for continued exploration.
The company had entered into an agreement with exploration firm Avrupa Minerals in 2019, securing a drilling license at the Sesmarias prospect, approximately 80km southeast of Setúbal, along with an 85% stake in the Alvalade joint venture.
However, despite identifying several mineralised massive sulphide intersections, Sandfire determined that the results did not justify further investment.
"Sandfire has assessed the results and, while several mineralised massive sulphide intersections were returned, the results of the 2024 drilling program did not meet the technical hurdles required for our team to progress," the company said in a statement.
"As a result, subject to the necessary regulatory approvals, Sandfire has agreed to return ownership of the project to Avrupa."
CEO and Managing Director Brendan Harris reaffirmed the company's focus on capital discipline and efficient project turnover.
He noted that relinquishing the Alvalade JV would enable Sandfire to direct its exploration efforts toward its wholly owned tenure within the Portuguese Iberian Pyrite Belt.
"We thank Avrupa and its team for their efforts and wish them success in the future," Harris said.