Sandfire Resources (ASX: SFR) has reported encouraging exploration drilling results across several near-mine prospects at its MATSA operating hub in Spain and its Motheo operating hub in Botswana.

The results come as miners continue to look for additional ore close to existing processing infrastructure, where new discoveries can be brought into a broader operating base more efficiently than greenfield projects. For Sandfire, the latest update is focused on adding confidence around deposits already within or near its current footprint, rather than opening up a new district.

At Magdalena West, the company said a further extension of mineralisation has been confirmed and remains open down plunge at the highest-rated MATSA prospect.

At the La Juliana prospect at MATSA, Sandfire intersected high-grade, polymetallic massive sulphide mineralisation and identified an off-hole downhole electromagnetic plate, which the company said will require significant further work.

At the A1 Extension and A4 West prospects at Motheo, Sandfire identified additional high-grade mineralisation. The company said these prospects will be a primary focus of planned drilling activity in FY27.

Chief executive and managing director Brendan Harris said the exploration results collectively demonstrate the prospectivity of the Iberian Pyrite and Kalahari Copper Belts and the potential to increase reserves within Sandfire’s existing mining footprint or close to existing processing infrastructure in Spain and Botswana.

He told shareholders that exploration success in these locations, together with the company’s Kalkaroo project, has the potential to deliver the strongest investment returns for shareholders.

“Having made the important decision to restructure our global exploration team last year to align accountability more closely with our operations, we’re particularly pleased to report strong progress in the recently completed half year as we intensified our focus on the drill bit in and around our existing processing hubs,” Mr Harris said.

“The exciting results that we’ve released today reinforce our confidence in the prospectivity of the Iberian Pyrite and Kalahari Copper Belts and the potential for new discoveries.

“The increasing rate of success we’re now seeing has been built on years of hard work and targeted expenditure that has significantly improved our geological understanding of these rich copper belts. We will continue to play the long game by methodically identifying and testing high-priority targets as we seek to identify 15 years of reserve life to support both our MATSA and Motheo operating hubs.

“We’re also applying the same proven approach at the Kalkaroo copper-gold project, which we believe is one of the best undeveloped projects of its type in Australia.”

Sandfire said immediate follow-up work will include drilling supported by CCM-90 downhole electromagnetic geophysics to test strike, down-dip and down-plunge extensions, while also evaluating the potential for additional mineralised lenses within the surrounding prospective stratigraphy. The company expects that work to take place in H1 FY27.

The planned geophysics-led drilling is intended to better define the scale, geometry and significance of the La Juliana system and assess whether it can contribute to future Mineral Resource growth at the MATSA operating hub, making the next phase of work important for gauging how these near-mine targets fit into the company’s longer-term reserve strategy.

SFR shares rose 7.11% to $24.40. The company’s market capitalisation was $10.74 billion.