Sipa Resources Ltd (ASX:SRI) has kicked-off an extensive helicopter-borne electromagnetic (EM) survey over about 60% of the Paterson North Project area in Western Australia, funded by joint venture (JV) partner Rio Tinto Exploration Ltd (RTX) as part of a $3.2 million exploration funding farm-in.
This EM-based exploration program is the next step in an extensive exploration program agreed upon with JV partner Rio Tinto Exploration.
Funding for Paterson North exploration is provided by RTX as part of a farm-in commitment to earn, in stages, up to 80% of the project, which is currently managed by Sipa.
Sipa’s Paterson North project showing the location of the current drilling and airborne EM survey.
“Very limited previous exploration”
“It’s full steam ahead at Paterson North, with the SkyTEM survey running in parallel to the ongoing drilling,” Sipa Resources managing director Pip Darvall said.
“The concealed geological formations at Paterson North have seen very limited previous exploration and are prospective for large-scale gold and base metal deposits, as evidenced by nearby discoveries.
“Sipa is excited by the potential for a new discovery from the current exploration program.”
Rio Tinto Exploration has the option to earn a 70% interest in Paterson North by sole funding expenditure of $12 million and increase its interest to 80% by funding either a JORC resource of A$1 billion in ground value or the completion of an ‘order of magnitude' study.