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Highlights
- Sipa Resources Ltd gears up for active drilling at key Western Australia projects.
- Two major drill programs planned for Paterson North and Skeleton Rocks.
- Corporate moves in the Paterson region indicate strong potential for further exploration.
Sipa Resources Ltd (ASX:SRI) is set for an active exploration phase in the final months of 2024, with drilling scheduled across two of its prominent projects in Western Australia. These exploration activities aim to build on the company’s progress and unlock further potential within the region.
At the 100%-owned Paterson North Gold-Copper Project, drilling is expected to commence in November. Reverse circulation (RC) drilling will focus on structural extensions to the previously identified gold-copper mineralization at the Obelisk prospect. The exploration will cover 11 holes, targeting 2,000 meters of ground to explore linking structures north and south of the main mineralized zone. Obelisk itself is a 1.2-kilometer zone known for its gold and copper deposits, with earlier results showing significant yields. For instance, prior drilling has revealed notable intersections such as 0.2 meters at 22.5 g/t gold and 2.0% copper at depth, indicating strong potential for further discoveries.
Paterson North, which spans over 1,000 square kilometers, sits in a strategic location near Rio Tinto’s Winu, Calibre, and Magnum deposits, as well as 115 kilometers north of the Telfer gold-copper mine. This region is gaining attention for its high-grade deposits and potential for significant resource development.
To support these operations, Sipa has entered into a drill-for-equity agreement with Topdrill, a Western Australian drilling contractor. This agreement allows Sipa to settle up to 30% of its drilling costs through issuing shares. The arrangement offers flexibility in managing exploration expenses while advancing the project at Paterson North.
In addition to Paterson North, Sipa is preparing for aircore drilling at its Skeleton Rocks Project in December. The focus will be on the Nicoletti trend, a 7.5-kilometer east-west zone with strong nickel, cobalt, and chromium indicators. Earlier drilling over a 400-meter strike returned results such as 16 meters at 0.4% nickel, 287 ppm cobalt, and 1.7% chromium, suggesting the presence of valuable mineralization. The upcoming program will further explore this trend, with north-south traverses planned to test extensions to the east and west.
Corporate activity in the Paterson region has also highlighted the area’s increasing significance. Notably, Greatland Gold PLC (AIM:GGP) recently purchased the Telfer mine from Newmont for US$475 million, while Rio Tinto Exploration Pty Ltd acquired a 32% share in the Citadel Joint Venture Project from Antipa Minerals Ltd (ASX:AZY). These moves underline the region's value and the possibility of further development opportunities.
As Sipa Resources advances its exploration agenda, the company continues to assess and refine its asset portfolio, ensuring that it maintains a focus on cost-effective and productive exploration in this highly prospective area.
