Speaking at Diggers & Dealers in Kalgoorlie late yesterday, Simich said some of Sandfire's exploration initiatives had changed substantially over the years.

"Certainly some of the tools and techniques that we're utilising now, compared to even two years ago, are significantly different. They're the same concepts, but they're significantly improved." he said.

Simich said new advances in electromagnetic exploration, in particular, had allowed Sandfire to map the region's geology at far greater depths.

"We're now able to see now down something in the order of 300-500m below the surface, where previously we were only able to look down, in some areas, in the order of 100-120m," he said.

Simich said the area around DeGrussa had big potential for new discoveries, and current drilling had still only tested shallow areas.

He said the next discoveries in the area may be at greater depths.

Looking ahead, Simich said Sandfire was making a number of improvements at DeGrussa to lower costs, including installation of a pebble crusher and column flotation cell.

New contractor Byrnecut, which has brought a brand new mine fleet onsite, is also expected to cut costs.

The three-year $A200 million Byrnecut contract was awarded last quarter, and followed on from the first three-year contract awarded to Australian Contract Mining.

Sandfire shares were up 0.2% to $A6.34 this morning.