Resource News

More positive results on copper-gold project for high-flyer Sandfire

 

PERTH -

Shares in Sandfire Resources closed today 18 cents up at $A3.60 ($US3.12) as a prelude to the company preparing its first JORC Code resource for the Doolgunna project north of Meekatharra in the north Murchison region.

There has already been a lot of number crunching by analysts with some of the more excitable suggesting their may already be 500,000 tonnes in the deep-seated lenses.

Apart from today’s results the rumour machine is still running strongly on speculation this junior which has had a rapid rise from being a penny stock less than eight months may be a takeover target. One of the names constantly mentioned is the cashed-up OZ Minerals Ltd.

The latest results will also provide fresh adrenalin for several explorers who hold ground at or near Doolgunna, which until this discovery was an old gold mining camp of little consequence.

The assays released today included a series of new holes into Conductor 1 and the Degrussa lens at Doolgunna.

Better assays from Conductor 1 included 6.8 metres grading 14.8% copper and 1.7 grams/tonne gold; 31.4m @ 4.6% Cu and 2.1 g/t Au; 25.9m @ 4.7% Cu and 2.2 g/t Au, 21.9m @ 6.3% Cu and 0.9 g/t Au and a hole with 20m @ 4.8% Cu and 0.8 g/t Au followed by 14.9m @ 4.7% Cu and 1.9 g/t Au.

A high grade intercept from DeGrussa was 2.1m @ 17.8% Cu and 7.5 g/t gold.

Managing director Karl Simich said generating the maiden resource estimate “is on track for this month.”

He said the entire 2009 drilling data base for the DeGrussa deposit encompasses 88 diamond holes, completed between early July and December 22 last year.

Simich said the company would increase exploration for additional VMS deposits near Conductor 1 and DeGrussa, including the Conductor 4 deposit picked up late last year.

The company believes, like the Canadian VMS mining models, that there is potential to discover multiple deposits on the exploration licences.

Well known Australian mining manager Martin Reed, who has helped develop several mines in Australia and southern Africa, has been appointed project manager…read more at the Mineweb

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