Sipa Resources Ltd (ASX:SRI) and Rio Tinto are banking on their combined expertise and a variety of exploration techniques to prospect for copper and gold at the Paterson North project.
The exploration program, managed by SRI and on its tenure, is part of a farm-in and joint venture agreement with Rio Tinto Exploration Pty Limited (RTX).
Exciting new targets
Earlier this year the companies conducted a high-powered gradient array IP survey (GAIP) over a large section of the project area. These results, along with further analysis of existing geophysical data sets and an updated basement geology interpretation, have allowed SRI and RTX geologists to pick out some new drill targets.
These new targets and some previously identified targets of renewed interest are high on the list for 2022, with preparations underway to drill test several of them soon.
Budget agreed
A budget of A$3.2 million has been agreed with RTX. This is expected to cover a range of activities across the broader project area in 2022.
The companies have planned around 4,000 metres of reverse circulation (RC) and aircore drilling for the project in the coming year. They will also conduct additional geophysical surveys, including airborne electromagnetic (EM) and further high-powered GAIP, to help them generate further targets across broader areas of the project.
Rio Tinto terms
Under the terms of a farm-in and joint venture agreement, RTX stands to earn a 70% interest in the project by sole funding expenditure of A$12 million – A$6 million to earn 55% and a further A$6 million to earn 70% – and increase its interest to 80% by sole funding to the earlier of a JORC resource of A$1 billion in-ground value or completion of an Order of Magnitude study.