Doolgunna Project - Near-mine Exploration

Corridor of Riches

Sandfire has an aggressive exploration program underway within the priority 6km long corridor extending the north-east and south-west from the DeGrussa/Conductor 1 deposits.

This corridor is defined by extensive electro-magnetic anomalism and will be systematically and comprehensively tested using a range of methods including high-powered surface EM surveys, diamond and RC drilling, down-hole EM and a comprehensive trial Induced Polarisation (IP) survey over the entire 6km long priority DeGrussa corridor.

The recent discovery of the Conductor 5 zone, approximately 900m north-east of the DeGrussa/Conductor 1/Conductor 4 deposits, has further confirmed the significant potential of this corridor for additional discoveries.

The mineralisation style, chemistry and regional setting of the deposits which form part of the DeGrussa Copper-Gold Project is consistent with VMS-style deposits. This type of mineralisation typically occurs in clusters of deposits or occurrences, often with multiple centres of mineralisation across a region or province.

Sandfire believes this 6km corridor may represent a cluster of deposits, with other opportunities identified for other target clusters within Sandfire’s 400 sq km tenement holding at the Doolgunna Project.

Diamond drilling is underway to test several priority EM targets to the south-west of DeGrussa which were identified from the airborne VTEM survey and verified by subsequent ground EM surveys.

A high-powered 200amp deep-penetrating ground EM survey is also being undertaken within the 6km priority mine corridor to the north-east and south-west of the DeGrussa Project. High-powered down-hole EM surveys (DHEM) will also be undertaken on a fence of deep diamond drilling holes completed within this corridor.

The Company has an outstanding pipeline of upcoming exploration targets within this corridor, including four new IP targets and several new EM conductors generated from recent work. Drilling of these priority targets is anticipated to commence in the near future.