Sandfire, which only farmed into the ground that's held by Auris Minerals just over two months ago, hit the mineralisation and promising geology in three holes with an aircore rig at downhole depths 72m, 112m and 149m.
An EM survey is now planned as is RC and diamond drilling.
As well as being encouraged by the results Sandfire also cautioned downhole contamination can occur in aircore drilling.
Analyst Simon Tonkin at Patersons similarly described the result as "encouraging" though he awaits further drilling.
"We caution, however, that this is early days and further work will be needed to determine if this is indeed a discovery," Tonkin said.
"Further RC/DD will be needed to determine the extent of the mineralised zone."
Sandfire is ur...