Sandfire Resources has discovered a significant new zone of massive sulphide mineralization about 900 metes north-east of the DeGrussa/Conductor 1 deposits at the DeGrussa Copper-Gold Project in Western Australia.
The new zone, referred to as Conductor 5, was discovered by follow-up diamond drilling to test strong off-hole conductor generated by down-hole electro-magnetic surveys undertaken on recently completed drill holes to the north-east of the Conductor 4 deposit.
The first three holes targeting this conductor have intersected significant widths of massive sulphide mineralization – 10.4 metres, 15.1 metres and 23.2 metres. The first hole returned a significant intercept of 10.4 metres @ 7.8% copper, 3.25 grams/tonne gold and 19.8 grams/tonne silver from 578.1 metres.
The Conductor 5 mineralization occurs in a similar stratographic position to Conductor 4, starting around 500 metres below surface. Initial drilling indicates Conductor 5 dips to the south-west and remains open.
Further drilling is continuing with Sandfire assigning three diamond drill rigs to complete an intensive program of step-out and in-fill drilling to further test the discovery.
The discovery of a new massive sulphide lode at Conductor 5 provides further strong evidence that the DeGrussa Project is a very substantial VMS system, bringing the total number of separate deposits discovered within the past 14 months to four - DeGrussa, Conductor 1, Conductor 4 and Conductor 5.
Several EM conductors have been defined in the vicinity of the new discovery by ground-based EM surveys to the north-east of the existing deposits at DeGrussa/Conductor 1.
DeGrussa is within the eastern part of Sandfire’s Doolgunna project, 900km north of Perth.
Oz Minerals has recently acquired a 19% interest in Sandfire, becoming the company’s largest shareholder followed by South Korean steelmaker POSCO with 17%. The POSCO investment is part of a strategic alliance which encompasses off-take arrangements for up to 30% of the future mineral production from Sandfire’s project portfolio, excluding gold and diamonds.