Doolgunna Project - JORC Resource
Sandfire Resources NL announced a Phase III Indicated and Inferred resource estimate for the Degrussa Copper – Gold Project. Building on the Phase II resource statement which included Conductor 4, the Conductor 5 resource is a further increase in the JORC compliant Mineral Resource inventory.
Phase III JORC Resource
The Phase III resource estimate for the Degrussa Project (DeGrussa, Conductors 1,4 and 5) is reported using a 1.0% copper lower cut-off grade limit is summarised in the table below:
DeGrussa Project, Phase III JORC Mineral Resource, September 2010
| Deposit | Resource Category | Tonnes (Mt) | Copper (%) | Gold (g/t) | Silver (g/t) | Contained Copper | Contained Gold (ounces) | Contained Silver (ounces) |
| DeGrussa Oxide | Inferred | 0.10 | 8.8 | 2.2 | 11 | 8,000 | 7,000 | 33,000 |
| DeGrussa Supergene Chalcocite | Indicated | 0.25 | 17.6 | 2.6 | 21 | 43,000 | 20,000 | 165,000 |
| DeGrussa Primary | Indicated | 1.38 | 8.2 | 2.4 | 21 | 113,000 | 106,000 | 936,000 |
| Conductor1 | Indicated | 5.80 | 4.9 | 1.7 | 13 | 282,000 | 314,000 | 2,413,000 |
| Inferred | 0.32 | 4.1 | 1.5 | 12 | 13,000 | 16,000 | 121,000 | |
| Conductor4 | Indicated | 0.73 | 4.4 | 1.4 | 10 | 32,000 | 33,000 | 237,000 |
| Inferred | 1.05 | 3.9 | 1.9 | 13 | 41,000 | 63,000 | 441,000 | |
| Conductor5 | Inferred | 1.05 | 6.4 | 3.0 | 21 | 67,000 | 101,000 | 709,000 |
| TOTAL | Indicated | 8.15 | 5.8 | 1.8 | 14 | 470,000 | 474,000 | 3,750,000 |
| Inferred | 2.52 | 5.2 | 2.3 | 15 | 130,000 | 186,000 | 1,305,000 | |
| TOTAL | 10.67 | 5.6 | 1.9 | 15 | 600,000 | 660,000 | 5,055,000 |
Notes:
1 Values have been rounded and differences may occur.
2 The resources for DeGrussa Oxide, DeGrussa Supergene Chalcocite, DeGrussa Primary, Conductor 1 and Conductor 4 were estimated by Coffey Mining Pty Ltd and were based on 148 diamond drill holes and 8 RC drill holes. Drilling coverage is predominantly defined on a notional 40m by 40m drill spacing on North-South orientated cross-sections.
3 The resource for Conductor 5 was estimated by McDonald Speijers and was based on 10 diamond drill holes. Drilling coverage is predominantly defined on a notional 80m by 80m intersection spacing.
Competent Person’s Statement
The information in this report that relates to Mineral Resources and Exploration Results is based on information compiled by John Evans who is a Fellow of the Australasian Institute of Mining and Metallurgy. John Evans is a permanent employee of Sandfire Resources NL and 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.
Forward-Looking Statements
Certain statements made during or in connection with this statement, including, without limitation, those concerning exploration targets, contain or comprise certain forward-looking statements regarding Sandfire’s exploration operations, economic performance and financial condition. Although Sandfire believes that the expectations reflected in such forward-looking statements are reasonable, 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, 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. 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.
Exploration and Resource Targets
Any discussion in relation to the potential quantity and grade of Exploration Targets for the DeGrussa Project 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 resource inventory and it is uncertain if further exploration will result in the determination of additional JORC compliant Mineral Resources.