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Microsoft Word - 14 September 2015 Doolgunna Project Drilling Update - FINAL
Sandfire Resources NL ABN 55 105 154 185 Level 1, 31 Ventnor Ave, West Perth Western Australia 6005 Phone: +61 8 6430 3800 Fax: +61 8 6430 3849
Email: [email protected] Web: www.sandfire.com.au
ASX/Media Release 14 September 2015
DOOLGUNNA PROJECT - MONTY DRILLING UPDATE
Near-surface massive sulphides intersected in two step-out RC holes along strike from TLRC0004
Sandfire Resources NL (ASX: SFR; 'Sandfire') is pleased to provide an update on ongoing exploration drilling being undertaken at the Monty copper-gold discovery located 10km east of the DeGrussa Copper-Gold Mine on the Springfield Project, part of its farm-in with Talisman Mining Limited (ASX: TLM; 'Talisman') (see Figures 1 and 2).
Two Reverse Circulation (RC) step-out holes designed to test potential extensions to the previously reported shallow intercept in TLRC0004 (18.0m grading 5.7% Cu and 2.4g/t Au from 107.0m) have intersected mineralisation along strike on either side of TLRC0004:
Step-out hole TLRC0008 intersected two zones of massive sulphide mineralisation approximately 40 metres along strike to the south-west of TLRC0004:
-
2.0 metres of massive sulphides (lightly weathered) from 90m to 92m down-hole;
(true width not known at this time, top of intercept is approximately 80 metres vertically below surface); and
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11.0 metres of massive sulphides from 111m to 122m down-hole (1.0m of siltstone from 114m)
(true width not known at this time, top of intercept is approximately 99 metres vertically below surface)
Step-out hole TLRC0009 also intersected two zones of massive sulphide mineralisation approximately 40 metres along strike to the north-east of TLRC0004:
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8.0 metres of massive sulphides from 133m to 141m down-hole;
(true width not known at this time, top of intercept is approximately 118 metres vertically below surface); and
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1.0 metre of massive sulphides from 158m to 159m down-hole
(true width not known at this time, top of intercept is approximately 141 metres vertically below surface)
RC samples from the holes will be dispatched for assaying. Updated collar locations are shown in Figure 2.
Further, RC hole TLRC0006, located 45 metres along strike to the south-west of TLRC0008, has drilled through a sequence of siltstones and dolerites to a depth of 187m down-hole. From 187m to the end of hole (318m), TLRC0006 drilled through a strongly sheared sequence which included dolerites, siltstones and basalt. This is consistent with the recently interpreted faulting shown Figure 2.
Elsewhere, Diamond drill holes TLDD0015 and TLDD0016 have been completed approximately 166 metres up-dip of TLDD0010 and 134 metres up-dip of TLDD0009 respectively. These holes intersected the host horizon above the projected plunge of the previously intersected massive sulphides in accordance with the updated interpretation outlined in the Announcement of 8 September 2015 (and shown again in the Vertical Long Projection in Figure 3).
Both holes, which were collared prior to this advance in the Company's understanding of the orientation of the mineralisation at Monty, intersected the prospective sedimentary horizon with TLDD0016 intersecting exhalative haematitic alteration and trace sulphides from 167m to 170m down-hole.
Drilling is continuing at Monty with additional Diamond holes underway and planned to test for extensions of the mineralisation both up and down-plunge, up- and down-dip and along strike. Drilling is being supported by down-hole EM surveys.
Sandfire is earning a 70% interest in the Talisman Mining's Doolgunna Project, which forms part of its Greater Doolgunna Project comprising a 1,700 square kilometre package of contiguous tenements surrounding the DeGrussa Copper Mine.
ENDS
For further information contact:
Sandfire Resources NL
Karl Simich - Managing Director/CEO
Office: +61 8 6430 3800
Read Corporate
Mobile: +61 419 929 046 (Nicholas Read)
Mobile: +61 421 619 084 (Paul Armstrong)
Table 1 - Drill-hole Information Summary, Springfield Project
Details and coordinates of all relevant drill collars are provided below:
Hole ID
|
Depth
|
Dip
|
Azimuth
|
Grid_ID
|
East
|
North
|
RL
|
Lease ID
|
Hole Status
|
TLDD0001
|
1099
|
-62°
|
357°
|
MGA94_50
|
740146
|
7174150
|
589
|
E52/2313
|
Complete
|
TLDD0002A
|
463
|
-61°
|
110°
|
MGA94_50
|
743544
|
7171211
|
602
|
E52/2282
|
Complete
|
TLDD0003
|
658
|
-62°
|
355°
|
MGA94_50
|
740596
|
7174550
|
589
|
E52/2313
|
Complete
|
TLDD0004A
|
817
|
-60°
|
148°
|
MGA94_50
|
743588
|
7171281
|
601
|
E52/2282
|
Complete
|
TLDD0005
|
478
|
-62°
|
139°
|
MGA94_50
|
743544
|
7171210
|
602
|
E52/2282
|
Complete
|
TLDD0006
|
554
|
-62°
|
138°
|
MGA94_50
|
743469
|
7171174
|
601
|
E52/2282
|
Complete
|
TLDD0007
|
589
|
-62°
|
138°
|
MGA94_50
|
743504
|
7171271
|
601
|
E52/2282
|
Complete
|
TLDD0008
|
688
|
-62°
|
138°
|
MGA94_50
|
743441
|
7171223
|
600
|
E52/2282
|
Complete
|
TLDD0009
|
472
|
-62°
|
138°
|
MGA94_50
|
743578
|
7171190
|
602
|
E52/2282
|
Complete
|
TLDD0010
|
433
|
-62°
|
140°
|
MGA94_50
|
743514
|
7171138
|
601
|
E52/2282
|
Complete
|
TLDD0011
|
472
|
-60°
|
140°
|
MGA94_50
|
743453
|
7171090
|
598
|
E52/2282
|
Complete
|
TLDD0012
|
598
|
-60°
|
140°
|
MGA94_50
|
743403
|
7171155
|
599
|
E52/2282
|
Complete
|
TLDD0014
|
399
|
-60°
|
140°
|
MGA94_50
|
743638
|
7171231
|
603
|
E52/2282
|
Complete
|
TLDD0015
|
363
|
-62°
|
143°
|
MGA94_50
|
743561
|
7171073
|
602
|
E52/2282
|
Complete
|
TLDD0016
|
274
|
-62°
|
143°
|
MGA94_50
|
743621
|
7171119
|
604
|
E52/2282
|
Complete
|
TLDD0017
|
236
|
-62°
|
143°
|
MGA94_50
|
743686
|
7171166
|
605
|
E52/2282
|
Complete
|
TLRC0004
|
306
|
-62°
|
143°
|
MGA94_50
|
743497
|
7171025
|
600
|
E52/2282
|
Complete
|
TLRC0006
|
318
|
-62°
|
143°
|
MGA94_50
|
743430
|
7170973
|
598
|
E52/2282
|
Complete
|
TLRC0008
|
294
|
-60°
|
143°
|
MGA94_50
|
743465
|
7171001
|
599
|
E52/2282
|
Complete
|
TLRC0009
|
265
|
-60°
|
143°
|
MGA94_50
|
743529
|
7171049
|
601
|
E52/2282
|
Complete
|
Table 2 - Significant Drill-hole Assay Intersections, Springfield Project
Details of all relevant intersections are provided below:
Hole ID
|
Int
|
From
|
To
|
Downhole Width
|
Intersection
|
Cu (%)
|
Au (g/t)
|
Zn (%)
|
TLDD0004A
|
409.5
|
426.0
|
16.5
|
18.9
|
2.1
|
1.5
|
TLDD0005
|
417.0
|
426.2
|
9.2
|
11.8
|
2.9
|
2.3
|
TLDD0009
|
1
|
343.0
|
344.0
|
1.0
|
8.6
|
0.3
|
0.1
|
2
|
363.1
|
371.0
|
7.9
|
8.3
|
2.4
|
2.1
|
3
|
385.8
|
390.6
|
4.8
|
4.9
|
1.1
|
1.4
|
TLDD0010
|
1
|
355.6
|
356.1
|
0.5
|
1.2
|
1.4
|
0.2
|
2
|
359.7
|
370.2
|
10.5
|
18.9
|
3.1
|
1.1
|
3
|
373.6
|
378.2
|
4.7
|
12.8
|
2.5
|
0.8
|
TLRC0004
|
1
|
107.0
|
125.0
|
18.0
|
5.7
|
2.4
|
3.2
|
2
|
158.0
|
162.0
|
4.0
|
4.2
|
0.7
|
0.1
|
Figure 1 - Sandfire's Greater Doolgunna Project, showing the Springfield Project (farm-in) and location of the Monty and Homer prospects
Figure 2 - Monty Prospect showing drill-hole collar locations and interpreted schematic geology
Figure 3 - Vertical Longitudinal Projection and initial interpretation of the Monty Prospect showing drill-hole piercepoints at the top of the mineralised zone. All intercepts are down-hole widths
Competent Person's Statement - Exploration Results
The information in this report that relates to Exploration Results is based on information compiled by Mr. Shannan Bamforth who is a Member of The Australasian Institute of Mining and Metallurgy. Mr. Bamforth is a permanent employee of Sandfire Resources and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bamforth consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Exploration and Resource Targets
Any discussion in relation to the potential quantity and grade of Exploration Targets is only conceptual in nature. While Sandfire is confident that it will report additional JORC compliant resources for the DeGrussa Project, there has been insufficient exploration to define mineral resources in addition to the current JORC compliant Mineral Resource inventory and it is uncertain if further exploration will result in the determination of additional JORC compliant Mineral Resources.
Forward-Looking Statements
Certain statements made during or in connection with this statement contain or comprise certain forward-looking statements regarding Sandfire's Mineral Resources and Reserves, exploration operations, project development operations, production rates, life of mine, projected cash flow, capital expenditure, operating costs and other economic performance and financial condition as well as general market outlook. Although Sandfire believes that the expectations reflected in such forward-looking statements are reasonable, such expectations are only predictions and are subject to inherent risks and uncertainties which could cause actual values, results, performance or achievements to differ materially from those expressed, implied or projected in any forward looking statements and no assurance can be given that such expectations will prove to have been correct. Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, delays or changes in project development, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in metals prices and exchange rates and business and operational risk management. Except for statutory liability which cannot be excluded, each of Sandfire, its officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this statement and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this statement or any error or omission. Sandfire undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events other than required by the Corporations Act and ASX Listing Rules. Accordingly you should not place undue reliance on any forward looking statement.
JORC Compliance Statement
A summary of the information used in this release is as follows.
The DeGrussa VHMS (volcanic-hosted massive sulphide) copper-gold deposit is located 900 kilometres north of Perth and 150 kilometres north of Meekatharra in the Peak Hill Mineral Field. The system is hosted within a sequence of metasediments and mafic intrusions situated in the Bryah Basin that have been metamorphosed and structurally disrupted.
The sulphide mineralisation consists of massive sulphide and semi-massive sulphide mineralisation. Primary sulphide minerals present are pyrite, chalcopyrite, pyrrhotite and sphalerite, together with magnetite. The sulphide mineralisation is interpreted to be derived from volcanic activity. The deposit shares characteristics with numerous VHMS deposits worldwide.
Sandfire Resources are currently exploring the defined prospective sequence in its 100% held tenements and within the Talisman Mining earn in and joint Venture agreement.
JORC 2012 TABLE 1 - EXPLORATION RESULTS
Section 1: Sampling Techniques and Data
Criteria
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JORC Code Explanation
|
Commentary
|
Sampling techniques
|
-
Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
|
-
Sampling method include half-core sampling of NQ2 core Diamond drilling (DD).
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RC samples are collected by a cone splitter for single metre samples or a sampling spear for first pass composite samples using a face sampling hammer with a nominal 140mm hole.
|
|
|
-
Aspects of the determination of mineralisation that are Material to the Public Report.
-
In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
|
-
DD Sample size reduction is through a Jaques jaw crusher to -10mm with a second stage reduction via Boyd crusher to -4mm. Representative subsamples are split and pulverised through LM5.
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RC sample are crushed to -4mm through a Boyd crusher and representative subsamples pulverised via LM5.
-
Pulverising is to nominal 90% passing -75µm and checked using wet sieving technique.
-
Samples are assayed using Mixed 4 Acid Digest (MAD) 0.3g charge and MAD Hotbox 0.15g charge methods with ICPOES or ICPMS.
-
Fire Assay is completed by firing 40g portion of the sample with ICPMS finish.
|
Drilling techniques
|
-
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of Diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).
|
-
DD is completed using NQ2 size coring equipment.
-
RC drilling is with sampling hammer of nominal 140mm hole.
-
All drill collars are surveyed using RTK GPS with downhole surveying.
-
All core where possible is oriented using a Reflex ACT II RD orientation tool.
-
Downhole surveying is undertaken using a gyroscopic survey instrument.
|
Drill sample recovery
|
|
|
Criteria
|
JORC Code Explanation
|
Commentary
|
|
-
Appropriate measures are taken to maximise sample recovery and ensure the representative nature of the samples. This includes Diamond core being reconstructed into continuous intervals on angle iron racks for orientation, metre marking and reconciled against core block markers.
-
RC sampling is good with almost no wet sampling in the project area.
-
Samples are routinely weighed and captured into the central secured database.
|
|
|
Logging
|
|
-
Geological logging is completed for all holes and representative across the orebody. The lithology, alteration and structural characteristics of core are logged directly to a digital format following procedures and using Sandfire NL geologic codes. Data is imported into Sandfire NL's central database after validation in LogChief™.
|
|
|
|
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Sub-sampling techniques and sample preparation
|
|
|
-
If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.
|
|
|
-
All samples are sorted, dried at 80° for up to 24 hours and weighed. DD samples are then crushed through Jaques crusher to nominal -10mm. A second stage crushing is through Boyd crusher to nominal -4mm. All RC samples are only Boyd crushed to -4mm.
-
Sample splits are weighed at a frequency of 1:20 and entered into the job results file. Pulverising is completed using LM5 mill to 90% passing 75%µm using wet sieving technique.
|
Criteria
|
JORC Code Explanation
|
Commentary
|
|
|
|
|
|
|
Quality of assay data and laboratory tests
|
|
-
Samples are assayed using Mixed 4 Acid Digest (MAD) 0.3g charge and MAD Hotbox 0.15g charge methods with ICPOES or ICPMS. The samples are digested and refluxed with a mixture of acids including Hydrofluoric, Nitric, Hydrochloric and Perchloric acids and conducted for multi elements including Cu, Pb, Zn, Ag, As, Fe, S, Sb, Bi, Mo, Re, Mn, Co, Cd, Cr, Ni, Se, Te, Ti, Zr, V, Sn, W and Ba. The MAD Hotbox method is an extended digest method that approaches a total digest for many elements however some refractory minerals are not completely attacked. The elements S, Cu, Zn, Co, Fe, Ca, Mg, Mn, Ni, Cr, Ti, K, Na, V are determined by ICPOES, and Ag, Pb, As, Sb, Bi, Cd, Se, Te, Mo, Re, Zr, Ba, Sn, W are determined by ICPMS. Samples are analysed for Au, Pd and Pt by firing a 40g of sample with ICP AES/MS finish. Lower sample weights are employed where samples have very high S contents. This is a classical FA process and results in total separation of Au, Pt and Pd in the samples.
-
The analytical methods are considered appropriate for this mineralisation styles.
|
-
For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
|
|
-
Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
|
|
|
|
Criteria
|
JORC Code Explanation
|
Commentary
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Verification of sampling and assaying
|
|
|
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Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.
|
|
|
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Location of data points
|
|
-
Sandfire Survey team undertakes survey works under the guidelines of best industry practice.
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All drill collars are accurately surveyed using RTK GPS system within +/-50mm of accuracy (X,Y,Z).
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Downhole survey completed by gyroscopic downhole methods at regular intervals.
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|
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Data spacing and distribution
|
|
|
|
|
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Orientation of data in relation to geological structure
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|
|
|
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Criteria
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JORC Code Explanation
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Commentary
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Sample security
|
|
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Audits or reviews
|
|
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Section 2: Reporting of Exploration Results
Criteria
|
JORC Code Explanation
|
Commentary
|
Mineral tenement and land tenure status
|
-
Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
|
-
The Talisman project encompasses E52/2282, E52/2313 and E52/2466 which are wholly owned by Talisman Mining Ltd, with no known third party encumberances. Sandfire is currently farming into the project on a staged basis with the right to earn 70% interest in the project area.
|
|
-
All tenements are current and in good standing.
-
The Talisman tenements are currently subject to a Native Title Claim by the Yungunga-Nya People (WAD6132/98). Sandfire currently has a Land Access Agreement in place with the Yungunga-Nya Native Title Claimants and have assumed management of Heritage Agreements which were executed by Talisman. These agremeents allow Sandfire to carry out mining and exploration activities on their traditional land.
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Exploration done by other parties
|
|
-
Aside from Sandfire Resources and Talisman Mining Limited there has been no recent exploration undertaken on the Talisman Project.
-
Exploration work completed prior to Talisman's tenure included geochemical soil and rock chip sampling combined with geological mapping. Some targeted RC was completed over gold and Diamond targets.
|
Geology
|
|
-
The Doolgunna Talisman's Project lies within the Proterozoic-aged Bryah rift basin enclosed between the Archaean Marymia Inlier to the north and the Proterozoic Yerrida basin to the south.
-
The principal exploration targets at the Doolgunna Projects are the Volcanogenic Massive Sulphide (VMS) deposits located with the
|
Proterozoic Bryah Basin of Western Australia.
|
Drill hole Information
|
A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
-
easting and northing of the drill hole collar
-
elevation or RL (Reduced Level - elevation above sea level in metres)
-
dip and azimuth of the hole
-
down hole length and interception depth
-
hole length.
of the drill hole collar
If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
|
|
Data aggregation methods
|
|
-
Significant intersections are based on greater than 0.5% Cu and may include up to a maximum of 3.0m of internal dilution, with a minimum composite grade of 1.0% Cu.
-
Cu grades used for calculating significant intersections are uncut.
|
|
-
Minimum and maximum DD sample intervals used for intersection calculation are 0.3m and 1.2m respectively subject to location of geological boundaries.
-
RC reported intersections are based on a regular 1m sample intervals.
|
|
-
No metal equivalents are used in the intersection calculation.
-
Where core loss occurs; the average length-weighted grade of the two adjacent samples are attributed to the interval for the purpose of calculating the intersection. The maximum interval of missing core which can be incorporated with the reported intersection is 1m.
|
Relationship between mineralisation widths and intercept lengths
|
|
|
|
|
|
|
Diagrams
|
|
|
Balanced reporting
|
|
|
Other substantive exploration data
|
-
Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
|
|
Further work
|
-
The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
-
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
|
|
|
|