Sandfire Resources NL (ASX: SFR; Sandfire)
previously reported the discovery of copper-rich massive sulphide
mineralisation at the DeGrussa Prospect, part of its wholly-owned Doolgunna Gold Project, some 130 kilometres north of Meekatharra
in Western Australia. Further to
these announcements, Sandfire has now received all
analytical results from the RC drilling program completed in May 2009 and no
further copper-rich sulphide mineralisation
has been recorded. Drill hole DGRC109 (previously unreported) intersected oxide
copper between 33 and 53 metres assaying 1.00 percent
copper.
In summary, four holes were deep
enough to intersect massive sulphide mineralisation.
All four holes were located near the south-western end of the previously
reported zone of near-surface gold mineralisation.
A further six holes intersected
shallow zones of oxide copper and variously gold, silver, zinc and palladium
enriched mineralisation, considered to be derived
from the primary sulphide mineralisation.
The best of the sulphide
mineralisation intersections, as previously reported,
are set out below.
Hole DGRC101 22m
from 96m to 118m of 3.6% copper, 3.8g/t gold and 13.4g/t silver (includes 5m of
17.4g/t gold from 115m)
And 18m from 126m to 144m of 2.9%
copper, 13.0g/t silver, 2.1% zinc and 1.0g/t palladium
Hole DGRC104 26m
from 117m to 143m of 3.2% copper, 2.9g/t silver, 1.3% zinc and 2.4g/t palladium
And 75m from 160m to 235m of 2.4%
copper, 10.9g/t silver
Hole DGRC105 47m
from 93m to 140m of 5.3% copper, 20.1g/t silver and 1.0% zinc
Hole DGRC106 22m
from 106m to 128m of 4.9% copper, 15.4g/t silver and 0.5% zinc
The mineralisation
style, chemistry and regional setting are consistent with a volcanogenic
massive sulphide (VMS) basemetal
deposit.
This type of mineralisation
typically occurs in clusters of deposits or occurrences and Sandfire
advises that most of the prospective stratigraphy
within the Doolgunna
Project is concealed by thick sequences of recent surficial sediments not readily explored by
traditional prospecting techniques.
Ground Electromagnetic Survey
Since the Company?s previous announcement on 21 May 2009, Sandfire has completed the ground electromagnetic (EM)
survey and downhole EM
surveys and interpretation of these survey results.
The surveys consisted of a downhole EM survey of five drill
holes at DeGrussa out of
the original 12 planned due to hole blockages. This work partially outlined an EM
conductor, coinciding with the known mineralisation. A fixed loop EM survey over an 800 metre strike length was completed
over the basemetal and gold
DeGrussa Prospect. This ground survey identified a second
larger conductor north of the known DeGrussa
mineralisation.
Modelling indicates
both anomalies would be detectable by an airborne EM survey.
In summary, the EM survey has
located two conductive bodies; one related to the known copper-rich basemetal mineralisation
identified by drilling, the other larger target of unknown source.
Planned Future Program
1. Commencing
9 June 2009 at DeGrussa, Sandfire will carry out a program of RC drilling deepening
four of the previous drilled holes testing for sulphide
mineralisation at depth and drilling a fifth hole to test the line of mineralisation
to the southwest. The larger EM
target to the north of DeGrussa
will be tested initially by an inclined deep RC hole
targeted central to the anomaly. EM
surveying of all holes will be undertaken.
2. In
late June 2009, an extensive airborne EM survey will be carried out over
approximately 150 square kilometres of the Narracoota Volcanics and surrounds, most of which are concealed
below transported recent sediments.
Further, a
discrete ground EM survey is planned over the DeGrussa mineralisation
shielded from the large EM anomaly.
3. In
early July 2009, Sandfire will commence a substantial
program of diamond core drilling to test the DeGrussa mineralisation at
depth and along strike from the known area of basemetal mineralisation.
- ENDS -
W JOHN EVANS
Technical
Director
AUSIMM
Competent Person
Competent Person?s Statement
The information in this report that relates to
Exploration Results is based on information compiled by John Evans who is a
Fellow of the Australasian Institute of Mining and Metallurgy. John Evans has
sufficient experience which is relevant to the style of mineralisation
and type of deposit under consideration and to the activity which he is
undertaking to qualify as a Competent Person as defined in the 2004 Edition of
the Australasian Code of Reporting of Exploration Results, Mineral Resources
and Ore Reserves. John Evans consents to the inclusion in the report of the
matters based on his information in the form and context in which it appears.
For further information, please
contact:
Karl
Simich Executive Director:
Mobile: +61 418 916 945
Nicholas
Read Read Corporate:
Mobile: +61 419 929 046