drilling update for borroloola and yannarie

Released to ASX after close of market :

ASX CODE: SFR
SFRCA
OFFICE AT: CORRESPONDENCE:
1 VENTNOR AVENUE T: +61 8 9226 5833 PO BOX 1495
WEST PERTH 6005 F: +61 8 9226 5844 WEST PERTH 6872
WESTERN AUSTRALIA E: [email protected] WESTERN AUSTRALIA
www.sandfire.com.au
ABN 55 105 154 185
DRILLING UPDATE FOR BORROLOOLA AND YANNARIE
HIGHLIGHTS
23 November 2006 • Holes A, B and C at Borroloola completed.
Chalcopyrite mineralisation intersected in all
three holes indicating a possible strike length of
>1.5km for this system.
• Drilling underway at Yannarie. Holes F and G
completed.
.
SANDFIRE RESOURCES NL
Drilling update for Borroloola and Yannarie
ABN 55 105 154 185
Page 2
BORROLOOLA (Sandfire 100%) (fig. 1, 2)
As at 23rd November, drill holes A (BRCD008), B (BRCD009) and C (BRCD011) have
been completed (fig.1). The fourth drill hole D (BRCD010) is in progress at 145m. This
hole is planned to go to 500m.
The current drilling program is testing geophysical targets (specifically induced
polarisation - IP). Based on the IP response, the anticipated sulphide content of the target
zone is between 1 and 3%. If all of the sulphide mineralisation was chalcopyrite, this
would give copper grades in the range 0.3 and 1%.
The completion of hole C brings to four the number of drill holes both piercing the
structure and intersecting chalcopyrite mineralisation. The strike length of the mineralised
structure as defined by drilling is now inferred to be approximately 1.5km.
The structure as it is presently known from mapping extends from the Four Archers fault
to the Lorella fault, a distance of approximately 7km. To date the western 1.5km has been
investigated on a preliminary basis at wide drill spacings. The Company has granted
tenure to the western 3km of the structure. The grant of the Company’s tenement
application covering remaining 4km of the structure to the east is pending (fig.2).
Assays for the pre-collars for BRCD008, 9 and 10 and incomplete intervals for the
diamond sections of BRCD008 and 9 have been received. Most of the diamond drill
sections of these 2 holes (BRCD008 & 9) have yet to be sampled or assayed. No
material from hole BRCD011 has yet been sampled or assayed. The pre-collars have
been sampled as 4m composites and the diamond core where sampled was generally in
intervals of 1m.
Drill hole BRCD008 was completed at 373m. The hole intersected disseminated pyrite
and chalcopyrite mineralisation in several zones between 232 and 297m (being 65
meters in all). Fifteen intervals (aggregating about 15 meters) within this zone have been
assayed with the best result being 1m grading 0.1% copper between 235.5 and 236.5.
Additional samples have been collected for analysis with present indications being that
the copper grades will be less than 1.0%.
Drill hole BRCD009 was completed at 337m. The hole intersected disseminated and
veinlet pyrite and chalcopyrite mineralisation between 160 and 166m with a second zone
occurring at 175m. Several other zones of chalcopyrite mineralisation occur below 175m.
Seven intervals from the section between 160 to 166m have been analysed with the best
result being 0.4% copper from 161.9 to 162.5m. Additional samples have been selected
from this hole and it is anticipated the results to date will be indicative of the copper
content of these samples.
Drill hole BRCD011 was completed at 430m. Pyrite and chalcopyrite mineralisation was
intersected in the interval 300 to 315m. Minor chalcopyrite mineralisation was
encountered below 315m. No material from this hole has yet been sampled or assayed.
SANDFIRE RESOURCES NL
Drilling update for Borroloola and Yannarie
ABN 55 105 154 185
Page 3
A second batch of samples was delivered to the laboratory in mid November. Sampling of
the core from the completed holes is continuing and samples are being delivered to the
laboratory progressively.
Based on the results to date, the correlation between the IP response and the
mineralisation is high so there is a reasonable expectation that hole D will also intersect
sulphide mineralisation. The Company is now considering drilling hole E. The scheduling
of this drilling will depend on the completion date of hole D.
On the basis of the success of the programme, the Company is planning its 2007
programme which will include additional ground geophysical surveys following the
structure to the east and further drilling
YANNARIE (Sandfire 100%) (fig. 3,4,5)
Drilling at Yannarie is underway. Holes F and G have been completed with hole C in
progress.
The main targets at Yannarie are conceptual iron oxide copper gold (IOCG) type targets
in the Coria and Two Peaks areas. Examples of IOCG type mineralisation are Ernest
Henry and Osborne located in NW Queensland. IOCG type deposits are generally
characterised by high levels of iron oxides (hematite/magnetite), base and precious
metals and an association with rare earth elements and uranium.
The Coria and Two Peaks magnetic anomalies were located from an airborne
geophysical survey (fig.5). The causative bodies have been modeled at around 200m
vertical depth (ie. do not outcrop) and are characterized by large magnetic susceptibilities
indicating significant (>10%) concentrations of magnetite. The combination of the tectonic
setting and the range of anomalous elements over the top of the magnetic features fits
the IOCG model.
A possible five holes (A, B, D, H and E) will drilled at Two Peaks and three holes (C, F
and G) will be drilled at Coria (fig.3,4). The holes and their targets are:
A – Two Peaks IOCG target;
B – Two Peaks IOCG target;
C – Coria IOCG target;
D – Two Peaks U anomaly:
E – Copper Prospect (Two Peaks);
F – Coria U anomaly;
G – Coria base metal zone:
H – Two Peaks U anomaly (same site as B).
The Coria uranium and base metal targets are adjacent to the IOCG target and will be
tested with RC drilling. The Two Peaks uranium and copper targets are similarly adjacent
SANDFIRE RESOURCES NL
Drilling update for Borroloola and Yannarie
ABN 55 105 154 185
Page 4
to the Two Peaks IOCG target and will be tested with RC drilling. The drill holes testing
the Coria and Two Peaks IOCG targets will be diamond drill holes.
Two other magnetic features within the project but separate from the above targets have
also been identified for follow up depending on the results from the current program.
G Steemson
Director
23rd November 2006
The information in this report that relates to Exploration Results is based on information compiled by Greg Steemson who is a Fellow
of the Australasian Institute of Mining and Metallurgy. Greg Steemson 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 for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Greg
Steemson consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
Corporate Information
Directors and Executive Management
P S Thomas: Non-Exec Chairman
G H Steemson: Managing Director
G Hutton: Executive Director
M Smartt: Company Secretary
Issued Capital
As at the date of this report the issued capital
of the Company is comprised of:
• 63,263,626 fp shares
• 11,460,652 contributing shares with
$0.15 to pay, no call before 3/3/07
• 2.6m 31/12/08 $0.25 opts
• 0.725m 30/9/08 $0.20 opts
• 6.9m 30/6/07 $0.60 opts
• 3 m 30/9/11 $0.50 opts
Substantial Shareholders
Faustus Nominees Pty Ltd 9.15%
Evolution Master Fund 6.72%
Resource Development Company 7.06%
Shareholder Enquiries
Matters related to shares held, change of
address, tax file numbers and the like should
be directed to the Company’s Registry:
Security Transfer Registrars Pty Ltd
Phone – 08 9315 2333
Investors interested in receiving copies of
ASX announcements can register such
interest on the Company’s website
www.sandfire.com.au.
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􀀨􀁭􀀩 􀀥􀁃􀁵
􀁂􀁒􀁃􀁄􀀱
550000 mE
8230000 mN
8235000 mN
550000 mE
8240000 mN
8245000 mN
555000 mE
560000 mE
555000 mE
560000 mE
565000 mE
570000 mE
565000 mE
570000 mE
575000 mE
8240000 mN
575000 mE
8230000 mN
8235000 mN
FOUR ARCHERS FAULT
LORELLA FAULT
ROSIE FAULT
COPPERMINE CREEK FAULT
EL24996
EL24946
EL10121
EL25328
EL25592
MLN624
EL24349
Borroloola Project
Gordon's Prospect
Regional Geology
4
Sandfire Resources NL
Projection: Longitude / Latitude (NAD 83)
2
kilometres
Scale: 1:100000
Drawing:
Author: SFR
Office:
1
Date:23/11/2006
Scale: 1:100000
0
Fig. 2
Serviced Road
Legend
2004 Drillhole
2006 Drillhole
Tenement EL10121
2006 IP Survey
2004 IP Survey
Track
Fault - accurate
0
5
3
9
2
5
3
9
4
0
4
9
0
8
5
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2
0
0
1
4
1
2
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342000mN
341500mN 341500mN
343000mN
342000mN
342500mN 342500mN
343000mN
7397000mRL
7397500mRL
7398000mRL
340500mN
340000mN 340000mN
340500mN
7397500mRL
7396500mRL
341000mN 341000mN
7398000mRL
7397000mRL
7396500mRL
E 0801374
E 0801409
C
F
G
Yannarie Project
Coria Prospect
Geochemical Sampling & Proposed Drilling
on TMI Contours
SAND FI R E RESOURCES
1 km
Fig 3
Magnetic high
Rockchip
Soil sample
Anomalous multi-element
geochemical results
Proposed drillhole
Dirt track
Legend
C
5
3
8
4
0
8
5
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2
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1
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0
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0
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0
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1
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1
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0
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0
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0
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0
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0
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0
5
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7
8
0
7
3
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6
0
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5
375000mN 375000mN
7370000mRL 7370000mRL
370000mN 370000mN
E 0901111 A
B D
E
Fig 4
Magnetic high
Rockchip
Soil sample
Anomalous Cu/U
geochemical results
Anomalous Cu
geochemical results
Proposed drillhole
Dirt track
Legend
B
Yannarie Project
2 Peaks Prospect
Geochemical Sampling & Proposed Drilling
on TMI Contours
SAND FI R E RESOURCES
1 km
2 Peaks North
Copper Prospect
E08/1374
E09/1111
E08/1409
Copper Prospect
2 Peaks
Mt Tucker
Coria
Winning Hill
390000 mE
7340000 mN
7400000 mN
7410000 mN
7420000 mN
7350000 mN
7360000 mN
7370000 mN
7380000 mN
7390000 mN
7430000 mN
380000 mE
390000 mE
360000 mE
370000 mE
380000 mE
7330000 mN
360000 mE
350000 mE
370000 mE
340000 mE
350000 mE
320000 mE
330000 mE
340000 mE
7430000 mN
7400000 mN
7410000 mN
7420000 mN
7350000 mN
7360000 mN
7370000 mN
7380000 mN
7390000 mN
320000 mE
330000 mE
7340000 mN
7330000 mN
Sandfire Resources NL
Yannarie Project
Total Magnetic Intensity
Prospects Location Map
Projection: MGA Zone 50 (GDA 94)
2.5 5
kilometres
10
Scale: 1:400000
Drawing:
Author: SFR
Office:
0
Date:23/11/2006
Scale: 1:400000
Fig. 5.