Sandfire Resources (SFR)

Shares / Stock Code

SFR

Stock Exchange / Sharemarket

ax

Sandfire Resources (SFR) focuses on gold and base metal exploration. It has a number of projects ongoing, with five in Western Australia and one in Northern Territory. SFR is carrying out its proposed Year 1 exploration programs and maintain a watching brief for other mining activities. The company was listed on the Australian stock market (ASX) in March 2004. It was established by geologists for the purpose of generating and testing new exploration targets.

Since its listing on the ASX, Sandfire has increased its exposure to the base metal potential of the Bangemail Basin with the addition of the Mt Genoa and the Tangadee projects. Major competitors include other metal base exploration companies within the market such as BHP and Rio Tinto. Customer include industrial companies, jewellery retailers and private investors.

The Company had its genesis in the consolidation of a portfolio of tenements in Western Australia and the Northern Territory secured by one of Australia’s most successful prospecting geologists, the late Mr Graeme Hutton. In May 2008, Sandfire concluded a Strategic Alliance with the leading Korean-based global steel group, POSCO, after completing a 19.99% share placement to the global steel giant. The Strategic Alliance encompasses off-take arrangements for up to 30% of the future mineral production from Sandfire’s project portfolio (excluding gold and diamonds) on commercial terms.

The Company’s philosophy is to leverage its expertise in project generation, exploration and prospecting to deliver an outstanding new generation of mining projects which can be developed in alliance or joint venture with POSCO and other major end-users of strategic commodities. In May 2009, Sandfire announced an exciting new high-grade copper-gold discovery at DeGrussa, within the eastern part of its 100%-owned Doolgunna Project, located 900km north of Perth in Western Australia. The DeGrussa Project encompasses three overlying and adjacent lenses of high-grade VMS copper-gold mineralisation, known as DeGrussa, Conductor 1 and Conductor 4.

A major program of resource definition and in-fill drilling was completed at DeGrussa in the second half of 2009 and early 2010, and in February 2010 Sandfire announced a JORC Compliant Phase I Indicated and Inferred Resource for the DeGrussa and Conductor 1 lenses of 7.13Mt at 5.2% copper, 1.9g/t gold and 15g/t silver for 372,000 tonnes of copper, 439,000 ounces of gold and 3.4Moz of silver. Following the announcement of this Phase I resource estimate, Sandfire’s focus is now on the delivery of a Phase II estimate, which is scheduled for release in the second quarter of 2010.

In addition the Company has initiated key activities as part of a Scoping Study to assess potential mine development options for DeGrussa and has commenced the project approvals process. The current Scoping Study is expected to transition seamlessly into a Definitive Feasibility Study commencing in the second half of 2010, which will provide a strong foundation for a potential mine development process commencing in 2011.

Sandfire is also continuing aggressive drilling programs to test for repeats of the VMS copper-gold mineralization discovered at DeGrussa, both in close proximity to the DeGrussa, Conductor 1 and Conductor 4 lenses and more broadly within its 395 square kilometre tenement holding at Doolgunna. The tenements cover a 22km strike length of the prospective volcanic sequence that hosts the DeGrussa VMS deposits and the area is considered to have excellent potential to be an emerging VMS camp.