Shares in Sandfire Resources have gained ground this morning on news that assay results from the latest drill hole at the Monty discovery, north of Meekatharra, had returned more copper.
The step-out hole returned grades including 18m grading 5.7 per cent copper and 2.4 grams per tonne gold, from 107m down-hole, and 4m at 4.2 per cent copper and 0.7gpt gold from 158m.
Sandfire, which is doing the drilling at Talisman's Springfield project as part of a farm-in deal, had expected copper hits as it tries to establish the size of the Monty find.
Monty is shaping as the best new base metals discovery in WA since Sirius Resources found Nova in 2012.
The step-out hole was drilled 200m along strike from the Monty discovery hole, which had intersects including 16.5m at 18.9 per cent copper and 2.1gpt from 409.5m, and 135m along strike from another successful hole that hit 9.2m at 11.8 per cent copper and 2.9gpt gold.
Monty is shaping as a volcanogenic massive sulfide (VMS) deposit similar in style to the DeGrussa ore body that underpinned Sandfire's flagship mine development.
VMS deposits usually occur in clusters though until Monty's discovery a few months ago Sandfire and a raft of explorers had spent millions of dollars in vain trying to find the next DeGrussa.
Monty is about 10km east of DeGrussa.
Sandfire has two diamond and one RC rig operating at Monty.
It said the holes being drilled were designed to test for mineralised extensions in the areas down-dip of the known massive sulphide intersections drilled to date.
Sandfire is earning a 70 per cent stake Springfield in return for funding drilling.
Sandfire shares were up 12¢ to $5.62 at 10am this morning, while Talisman was flat on this morning's news.
SFR Price at posting:
$5.54 Sentiment: Buy Disclosure: Held
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