Sipa Resources Ltd (ASX:SRI) made strong exploration progress during the December quarter, well-funded with $3.9 million in cash as it progresses exploration across its portfolio of Western Australian assets.
The company’s strategy is to focus on large-scale ground holdings in under-explored areas within its tenements that can be explored cost-effectively.
Sipa also has the Aelikongo Nickel-Copper Project in Uganda, which is shaping as an important recent nickel sulphide discovery.
Aircore program at Warralong
During the quarter, Sipa completed an aircore drilling program totalling 2,905 metres at Warralong on tenement E45/5740.
While no gold or other key metal (copper, nickel, lithium) mineralisation was identified in the samples, the information assisted in the completion of a detailed basement interpretation along with further targeting work to identify several targets for drill testing in early to mid-2022, as the vast majority of the Warralong tenure is yet to be tested by any drilling.
Just over 1,000 soil, lag and rock chip samples were also collected during the quarter with results expected imminently.
New targets at Paterson North
At the Paterson North farm-in project with Rio Tinto, an extensive gradient array induced polarisation (GAIP) geophysical survey was completed during the September quarter.
Results from the GAIP survey, in conjunction with a review and reprocessing of existing geophysical data sets, and an updated basement geology interpretation undertaken during the December quarter enabled several exciting new drill targets to be identified by Rio Tinto and Sipa geologists.
The review of the recently acquired historic geophysical data has highlighted a number of new and existing targets for drill testing in the 2022 field season.
The budget for a range of activities across the broader project area in 2022 has been agreed with RTX and will include:
- SkyTEM aerial EM survey;
- Gradient Array IP;
- Aircore and RC drilling; and
- Heritage survey.
Notably, the total budget for Paterson North in 2022 of $3.2 million is to be funded by RTX 100%.
EIS funding at Skeleton Rocks
Sipa was advised of a successful application to the Western Australian Government’s Exploration Incentive Scheme (EIS), with funding of up to $128,750 awarded for drilling at the Skeleton Rocks project.
The EIS grant will significantly reduce the direct costs of the planned drilling, which remains on track for this quarter.
Drilling will test previously undrilled interpreted greenstones adjacent to major structures, identified in a detailed aeromagnetic survey conducted by Sipa earlier in 2021.
Wolfe Basin update
Site preparations were completed to enable drill testing of high priority chargeability anomalies in a favourable stratigraphic position to host base metal sulphides.
Drilling was not able to be undertaken when originally planned due to adverse weather and border closures and has been rescheduled for the June quarter in 2022.
Barbwire Terrace JV
The Barbwire Terrace project targeting MVT-style base metals mineralisation is being advanced in a joint venture with Buru Energy Ltd (ASX:BRU).
During the quarter Buru satisfied the terms of the farm-in agreement and Buru’s wholly-owned subsidiary Battmin Pty Ltd became entitled to 50% ownership of the tenements in the joint venture.
The Barbwire Terrace project was also bolstered by the addition of three new tenements increasing the project area to about 2,500 square kilometres.
Heritage surveys were undertaken during the quarter over the priority drill targets with no areas of particular concern were identified during the surveys, and the JV partners are planning on drilling four holes to a nominal depth of 500 metres in September quarter 2022.
Forward plan – March quarter
- Auger soils and aircore drilling at Skeleton Rocks;
- Review of Warralong soil sample assay results, targeting, drill planning and heritage surveys; and
- Pending rig availability, completion of further aircore drilling at Warralong.