Feedback from Bell's

Feedback from Bell's after the last drilling update from Sandfire.

The latest assay results from the Monty Prospect at Doolgunna in WA (SFR 70% and Operator, TLM 30% contributing) include another super high grade that extends the bornite zone, showing the deposit is still “alive” and getting bigger. Key points are:
· Hole TLDD0061, near the super high grade bornite intersection in hole TLDD0026 (15.2m true thickness at 34.4% copper and 0.4g/t gold) has intersected several zones including the main zone estimated at 15.9m true thickness at 24.1% copper and 0.5g/t gold
· These super high grade bornite-rich intersections are part of a very significant zone that is still open to the NE and SE and now clearly contains significantly more than the notional 41kt of ore at 34.4% copper that we put in a cylinder around hole TLDD0026 back in November last year
· Hole TLDD0036 is located to the NE of the two bornite holes and it has intersected a thick main zone estimated at 6.3m true thickness at 14.1% copper and 1.5g/t gold that is the more traditional massive chalcopyrite mineralisation of the rest of the deposit
· Overall average copper grade based on the addition of the latest drill results confirmed as more likely to be around 12%
· Drilling in the flexure zone between the previous Upper Zone and the Lower Zone, which SFR have been very slow/reluctant to drill, shows (not surprisingly) that it is quite well mineralised (2.0m estimated true thickness at 4% copper and 1.6g/t gold) and would certainly be mined
· The shape of Monty is continuing to change and reflects the fact that this high grade VMS mineralisation has essentially stayed intact, even though it has been squeezed around like toothpaste so the final shape could look quite irregular and very distorted after its tectonic history but importantly from the visual shots of the core, the ground conditions generally look very good from a potential mining perspective
· It is clear to us that the ultimate size of the deposit is likely to be much closer to 1.5Mt than the circa 1Mt that’s floating around in some quarters and so with a grade of circa 12% copper, it would contain about 180kt of copper and it could be bigger if the other associated mineralised zones are included, some of which will clearly be mined given their grade and proximity to the main zone
· At a notional mining rate of 300kt of ore per annum, a potential mining operation could contribute around 35kt of copper in concentrate over 5 years, making the current activity to advance studies into its early mining very logical
· More drilling needed to fill out the actual size and grade of the deposit – Maiden Resource planned for end of March quarter/early part of June quarter with plan that high proportion of it is in the Indicated category
· Further highlights the likelihood of other similar (and potentially even better, if that’s possible, certainly likely to be bigger ones) deposits in the district – highlights the need for SFR to stop dragging its feet on that regional exploration

In summary, we believe Monty is every bit as good as we thought it was and is potentially even better. Monty is an absolutely outstanding deposit that is highly economically attractive at current copper prices. Confirms our Buy recommendations for SFR and TLM

Thanks Jota Jota