Sandfire Resources NL (ASX: SFR)
Drilling Extends Known Limits of Conductor 1 Mineralisation
Sandfire Resources NL (ASX:SFR) is pleased to announce that the first Diamond drill hole at the Conductor 1 prospect at its Doolgunna Project in Western Australia has extended the known limits of the mineralisation.
The hole (DGDD001) intersected 18.5m of massive sulphides to a depth of 356.3m down hole. This intersection (Intersection 4) is believed to be an extension of Conductor 1 at approximately 200m down dip from the mineralisation intersected and reported previously at hole DGRC 115.
The latest intersection was recorded at a vertical depth of approximately 300m. Collar co-ordinates for the hole DGDD 001, inclined at 60 degrees to the north, are 7173000mN and 733840mE (GDA94). Doolgunna is located approximately 130 kms north of Meekatharra in Western Australia.
Sandfire announced last week that the first Diamond drill hole at Conductor 1 had intersected two zones of massive sulphides. The first of these (Intersection 1) was recorded from 146m to 157m (11 metres down hole) and the second (Intersection 2) was recorded from 176m to 207m (31 metres down hole).
A third intersection (Intersection 3) of partial (not massive) sulphide mineralisation has been recorded from 318.9m to 324.9m (6 metres).
This is a total of 60.5 metres of massive sulphide mineralisation (and a total of 66.5 metres of mineralisation in all) to a depth of 356.3m down hole.
Intersections 1 and 2 are considered to be part of the DeGrussa deposit. Intersection 3 is a new zone while Intersection 4 is considered to be a continuation of Conductor 1 at depth some 200m down dip from the mineralisation intersected in DGRC 115.
This hole, DGDD 001, was designed to and now has intersected the Conductor 1 mineralisation at a vertical depth of approximately 300 metres and down dip from DGRC 115.
The Company previously reported that there was abundant chalcopyrite in Intersections 1 and 2. This report was based on the visual assessments of the experienced field geologists. The same view prevails with respect to Intersection 4.
Assays for the four intersections are expected to be received progressively during the period from Monday 20 July to Friday 24 July 2009.
Sandfire has commenced Diamond drill hole DGDD-002, inclined 60 degrees to the north, located at 733840m E and 7172880m N (GDA94), targeting the DeGrussa and Conductor 1 mineralisation at depth. This hole is expected to be completed by 20 July 2009.
Sandfire has commenced assessing in the field the efficacy of a portable XRF analyser Niton model XL3T. The accuracy of this technique can vary according to associated elements. Accordingly, Sandfire will be calibrating the instrument using mineralisation for which accurate assay values are known before considering possible reporting of field XRF assay results.
A trial ground survey, consisting of two electromagnetic traverses toward the eastern end of the known DeGrussa oxide gold trend, located a deep conductive response. The EM traverses used a 200m moving loop array to test below the level of surface conductivity. The deep response is located about 120m south of the DeGrussa trend. Following modelling of the conductor, a ground EM survey is planned to test the limits of this conductor.
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W JOHN EVANS
TECHNICAL DIRECTOR
Fellow of the AUSIMM
(A 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 ? Managing Director:
John Evans ? Technical Director:
Office: +61 8 9226 5833
Nicholas Read / Paul Armstrong ? Read Corporate:
Mobile: +61 419 929 046 (Nicholas Read)
Mobile: +61 421 619 084 (Paul Armstrong)
READ CORPORATE
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T: (+61-8) 9388-1474 | F: (+61-8) 9388-1472 | E: info@readcorporate.com.au | Web: www.readcorporate.com.au
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