Group annual mineral exploration report Borroloola Project EL 24401, EL 25591, EL 26555, EL 26587, EL 26908, EL 26909, EL 26953, SEL 26831, SEL 26833, SEL 26835, SEL 26836, SEL 26837 SEL 26938, and SEL 26939 GR121 11 April 2010 to 10 April 2011

Abstract

During the current reporting period Sandfire targeted five prospect areas within its Northern Territory Borroloola Project tenements. These were the northern Emu Fault Zone for HYC-SEDEX-style lead-zinc hosted within the Barney Creek Formation, Tawallah T1 and T2 in the Lorella Pocket also for base metal SEDEX style deposits; Yiyintyi, a conceptual unconformity-related uranium target, the Hells Gate Hingeline for iron ore, and the Alice Prospect (along and 3km north of the Ryans Bend road) for epigenetic(?) lead-zinc. Encouraging results at Tawallah T1 entailed significant copper mineralisation intersections over a 2.5km by 1km area, with a smaller enriched area concentrated around an interpreted feeder structure. This resulted in an extended drilling programme and coupled with difficult drilling conditions within the Emu Fault Zone holes, proposed drilling at Alice Prospect and Hells Gate was not conducted and only part of the proposed drilling at Yiyintyi was completed. One RC drill rig and one diamond drill rig were used. In total RC drilling included 108 holes for 14,610.1 metres, and 907.7 metres of diamond drilling was completed over 4 holes. 9435 RC samples and 161 drill core samples were submitted for analysis.