SANDFIRE Resources has hit a thick zone of bornite-bearing...

SANDFIRE Resources has hit a thick zone of bornite-bearing massive sulphides grading 34.4% copper at Talisman Mining’s Monty prospect.



Sandfire drilling in the Doolgunna region

A recent step-out hole returned 7.3m at 6.2% copper and 2.8 grams per tonne gold from 325.6m down-hole; and 21.6m at 34.4% copper and 0.4gpt gold from 339.4m.
Sandfire managing director Karl Simich described the result as “exceptional”.
“An intersection of this magnitude is without doubt an exciting breakthrough,” he said.
“While we don’t yet fully understand the significance of this bornite-rich zone, it is pleasing to note that it correlates with the lower zone of mineralisation intersected in previous drilling and remains open up-dip with further drilling planned.”
Bell Potter analyst David Coates said the hit added a new dimension to the interpretation of Monty, opening up the possibility of a new thick, very high-grade zone trending to the southeast, related to the Lower Zone.
“Even with the true significance of the bornite mineralisation yet to be understood, these latest results, in our view, confirm Monty as one of the best new discoveries in the sector,” he said this morning.
Other promising results released today from the Lower Zone included 1.5m at 13.8% copper and 1.1gpt gold from 272.3m; 3.4m at 17.9% copper and 3.9gpt gold from 239m; 8m at 13.3% copper and 1.8gpt gold from 286.2m; and 2.6m at 14.2% copper and 1.1gpt gold from 445.6m.
Simich said Sandfire was stepping up drilling capacity at Monty with an infill drilling program underway.
Sandfire has two diamond, one reverse circulation and one aircore rig working at Monty currently.
A maiden resource for Monty is planned for the first quarter of next year, likely around the same time as Sandfire updates resources and reserves for its DeGrussa mine, just 10km away.
“The clear signals continue that Monty is being readied for development,” Coates said.
“The infill drilling program is likely to result in a good portion of the maiden resource being in the higher confidence indicated category, allowing conversion to reserves and hence approval for mining.”
Sandfire is also testing for additional accumulations of mineralisation along the 5km-long Monty trend.
“Together with planned drilling at Homer, 4km east of DeGrussa, this is an exciting time for our exploration team at DeGrussa as we continue to unlock the potential of this province,” Simich said.
Sandfire is earning 70% of Monty from Talisman by spending $A15 million.
Despite the result, Sandfire shares dropped 0.9% to $6.38, while Talisman shares were unchanged at 57c.