Proactiveinvestors recommends

Red Sky Energy sees upside potential as New South Wales decision on Talma CSG pilot draws near
Xceed Resources: Cash backed and developing coal production and cash flows from Moabsvelden
Oro Verde on the exploration trail of gold and copper in Chile, commences trading today

Additional Information

Market:	ASX
Sector:	General Mining
EPIC:	SFR
Latest Price:	7.33 (2.23% )
52-week High:	8.52
52-week Low:	5.62
Market Cap:	1,105.95M

1 year chart

1 day chart

Sandfire Resources

Sandfire Resources (ASX: SFR) is an Australian minerals exploration company focused on generating value through the discovery of a new generation of quality mineral deposits.

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.

Sandfire Resources ups DeGrussa copper Resource by 13% to 600,000 tonnes

Friday, September 03, 2010 by Jeff Coote

Sandfire Resources (ASX: SFR) has reported a further boost to the JORC compliant Mineral Resource inventory for its 100%-owned DeGrussa Copper-Gold Project in Western Australia, and drilling of two EM conductors south-west of DeGrussa is underway with four rigs on site.

The DeGrussa Phase III JORC Mineral Resource increased to 10.67 million tonnes grading 5.6% copper, 1.9g/t gold and 15g/t silver, containing 600,000t copper, 660,000oz gold, 5.1Moz silver.

This represents a 13% increase compared with the July 2010 Phase II resource of 9.62 million tonnes grading 5.5% copper, 1.8g/t gold and 14g/t silver.

Given the copper grades, DeGrussa ranks as one of the highest grade deposits in the world, with an estimated in-ground gross value at current metal prices of near A$5 billion.

The upgrade follows completion of the maiden JORC resource estimate for the Conductor 5 deposit, prepared by Perth-based independent consultants McDonald Speijers.

It comprises an Inferred Resource of 1.05 million tonnes grading 6.4% copper, 3.0g/t gold and 21g/t silver, which is estimated to contain 67,000 tonnes of copper metal, 101,000 ounces of gold and 0.7Moz of silver.

It also includes the maiden Inferred JORC resource for the Conductor 5 deposit of 1.05Mt @ 6.4% copper, 3.0g/t gold and 21g/t silver (containing 67,000t copper, 101,000oz gold, 0.7Moz silver).

Conductor 5, which is located 900m north-east of DeGrussa, was discovered in June 2010. The maiden Conductor 5 resource adds to the Phase II resource estimated by Coffey Mining Pty Ltd announced on 19 July 2010.

This is the third successive JORC resource statement for the DeGrussa Project since its discovery in April 2009, highlighting the substantial exploration upside within the DeGrussa mineral system.

The overall estimate of contained copper metal at DeGrussa has grown by 61% since the February 2010 JORC Mineral Resource (7.13Mt containing 372,000t of copper) while the overall resource tonnage has increased by 50%.

The overall copper grade of the resource inventory has also continued to increase steadily, with the Phase III resource reflecting the inclusion of a maiden resource for the exceptionally high-grade Conductor 5 deposit.

Preliminary open pit optimisation and design scheduling indicates a component of DeGrussa is direct shipping material comprising 151,000t @ 25.6% Cu, 2.6g/t gold and 21g/t silver (39,000 tonnes of contained copper) for initial extraction.

Development studies are proceeding on schedule with open pit and underground mine design underway and metallurgical test work continuing.

John Evans, technical director, said exploration is gathering momentum within the 6km long priority DeGrussa corridor with a highpowered ground EM survey continuing, and four rigs are on site.

Drilling of two EM conductors south-west of DeGrussa is underway and drilling is commencing soon at several IP and EM targets.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.