Overview
The Doolgunna Copper-Gold Project is located 900km north of Perth and approximately 150km north of Meekatharra in the Peak Hill mineral field of Western Australia. Click here to view Project Location Map
The Doolgunna tenement package comprises six contiguous granted Exploration Licences (E52/1698, E52/1699, E52/1715, E52/2209, E52/2358 and E52/2208) plus a seventh Exploration Licence (E52/2401) covering a total area of 395 square kilometres within an emerging copper-gold mineralised belt in the Bryah Basin.
The project area lies close to a number of existing and historical gold mines and infrastructure including the Goldfields Gas Pipeline and Great Northern Highway. Click here to view Doolgunna Project Tenements
In mid-2009, Sandfire discovered high-grade VMS copper-gold mineralisation at DeGrussa, which has since been defined as three overlying and adjacent high-grade lenses, DeGrussa, Conductor 1 and Conductor 4.
Sandfire completed a Phase I JORC Compliant resource estimate for the DeGrussa and Conductor 1 lenses in February 2010. A Phase II estimate is scheduled for release in the second quarter of 2010 including the high-grade Conductor 4 deposit, extensions of the known lenses and the high-grade chalcocite zone.
Phase I JORC Resource
In February 2010 Sandfire announced a JORC Compliant Phase I Indicated and Inferred Resource for the DeGrussa and Conductor 1 lenses of 7.13Mt at 5.2% copper, 1.9g/t gold and 15g/t silver for 372,000 tonnes of copper, 439,000 ounces of gold and 3.4Moz of silver, using a 1.0% copper lower cut-off grade.
View the full Phase I Indicated and Inferred resource estimate.
Scoping Study
Following the completion of the Phase I resource, Sandfire has initiated key activities as part of a Scoping Study to assess potential mine development options for DeGrussa and has commenced the project approvals process. This includes:
- commencement of the process for obtaining key environmental and project approvals including the appointment of environmental consultants and initial meetings with key regulators;
- initiation of a Mining Lease Application including meetings with the Western Australian Department of Minerals & Petroleum and implementing a process to address Native Title and Heritage;
- appointment of independent consultants to undertake metallurgical test work on ore from the DeGrussa lenses. This will involve metallurgical diamond drilling and large-diameter core drilling to obtain samples for comminution testing and flotation test work;
- assessment of gas supply options for electricity generation for the DeGrussa Project; and
- commencement of preliminary mine planning and geotechnical work.
The current Scoping Study is expected to transition seamlessly into a Definitive Feasibility Study commencing in the second half of 2010, which will provide a strong foundation for a potential mine development process commencing in 2011.
Geology
The mineralisation style, chemistry and regional setting of these deposits is consistent with volcanogenic massive sulphide (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.
The Doolgunna tenements cover a 22km strike length of the approximately 2km thick volcano-sedimentary sequence at the top of the Narracoota Volcanics, the prospective stratigraphy which hosts the DeGrussa, Conductor 1 and Conductor 4 deposits.