Sipa Resources Limited ABN

Transcription

1 Sipa Resources Limited ABN November 2012 EXPLORATION UPDATE HIGHLIGHTS Breakthrough at Enigma Copper Prospect at Thaduna, where very thick drill intersections of copper-bearing gossans have been encountered: on drill line 77,5000E, two RC holes intersected up to a 100 metres thickness of iron- & silica-rich gossan representing oxidized semimassive to massive sulphides at least in part, copper-bearing on drill line 77,5700E, two RC holes intersected two iron-rich gossan zones, one about 100 metres thick and the other about 50 metres thick again, representing oxidized semi-massive to massive sulphides also, at least in part, copper-bearing ground conditions will not allow deeper RC testing of the gossans, but a diamond drill is scheduled to commence diamond core tails later this week targeting the sulphide zone As part of Sipa s 25 year long commitment to a Greenfields Exploration approach, six Exploration Licences have recently been granted in a new exploration frontier being Uganda, East Africa: the ground, which is primarily prospective for very large base metal deposits, was selected after focused field reconnaissances and data compilation and interpretation this is an excellent opportunity to apply the successful surface geological/geochemical exploration approach that saw Sipa discover two new Mineral Provinces in Western Australia in the 1990 s Uganda is a stable and safe country, newly open for business, that has not yet attracted the relatively intense exploration attention that its neighbours Tanzania and the DRC have hence this is also an excellent first mover opportunity!

2 Sipa Resources Limited Exploration Update 26 November THADUNA COPPER PROJECT Aircore drilling recommenced at the Enigma Copper Prospect in early October and finished on the 9 th of November, with 126 holes (THR 3,253 to 3,378) for 9,074 metres completed. The Aircore rig was replaced by an RC rig in early November and, to time of writing, 10 holes (THC 018 to 027) for 1,976 metres have been completed. The aims of the Aircore drilling were to attempt to assess the possibility of defining one, or more, potentially economic resources within the very extensive Enigma Secondary Copper Blanket, as well as to attempt to discover vectors to the primary sulphide source of the secondary copper. The most important results from that latest Aircore program, when added to previous results, is that we believe we are now discovering those vectors. These are significant gossan zones in drill holes, which represent oxidised semi-massive to massive sulphides. Geochemistry and visual observations indicate that the primary zone sulphides include copper sulphides. Gossans are leached (of metals) cappings on sulphide deposits. The recognition of, and discrimination between, gossans developed on base, or precious, metal bearing sulphides, or on barren iron sulphides, is critical in evaluating them as drill targets for potentially economic sulphide deposits. Visual recognition of textures, both by eye and microscope, understanding of their multi-element geochemistry and their geological setting are the key discriminating factors. Having made what we consider to be a breakthrough, by discovering these vectors to the primary copper source, we replaced the Aircore rig with an RC rig and have since been successfully chasing several of these gossans deeper towards the sulphide zone. The Aircore drilling is also considered to have increased the likelihood of discovering potentially economic bodies of secondary mineralisation, though significantly more drilling is still required. As we know from previous deep drilling, much of the Enigma Prospect is very deeply weathered likely because of the very large and intense Enigma alteration system. We still do not have primary zone sulphide intersections in the current RC drilling, and having reached the practical depth of this drilling method at around 200 metres (because of water volumes and pressures at that depth) we are now drilling precollars to continue diamond core from. A diamond drill is to arrive later this week. Figure 2 shows all the Aircore holes drilled at Enigma. The red holes are those that have significant gossan intersections.

3 Sipa Resources Limited Exploration Update 26 November Three areas have been targeted by the recent RC drilling, the southern two sections A A on 77,5000E (Figure 2) and B B on 77,5700E (Figure 3) have gossans in the Aircore holes, whilst the northeastern area around 77,6000E, 718,655N has significant secondary copper with very strong multielement geochemistry. Figure 1 Enigma Geological Map with all Aircore, RC & Diamond Drill Holes Aircore Holes with Gossan shown as Red Dots Figure 1, above, is an outcrop geological map of part of Enigma showing the Enigma Anticline trace in brown (lateritic gravels developed on a particular sedimentary strata), a lower dominantly dolomitic sequence in green and an overlying turbidite sequence (Thaduna Greywacke) in blue. What is important, but not obvious from the map, is that most of the Enigma Secondary Blanket is associated with coarse grained, matrix (carbonate) support, sandstone units within the dolomite sequence. These sandstone units are generally able to be correlated from drill hole to drill hole, and suggest more than one mineralised position that are gently folded, compatible with the overall Enigma Anticline and it s subsidiary folds. The red dots are Aircore holes from this, and earlier, programmes that have iron-rich rocks which, based on their textures and multi-element geochemistry, are interpreted as gossans after semi-massive to massive sulphides. The presence of copper carbonates (malachite, atacamite and azurite) within, and associated with, the gossans, along with their multi-element signatures (e.g. in THR 3,132 between A A in Figure 2, Au peaks at 123 ppb, Ag at 2.9 ppm, As at 84 ppm, Bi at 3 ppm and Sb at 4 ppm) and textures, suggest that

4 Sipa Resources Limited Exploration Update 26 November the primary sulphides are, in at least part, copper sulphides. These gossans are generally hosted by, or are immediately above, the sandstone units described above. Figure 2 Cross Section A - A on 77,5000mE Cross Section A A, above shows the original gossan intersections in THR 3,132, 3,131 and 3,129. RC holes THC 018 and 019 were scissored to find the likely dip of the gossan and then THC 019 and 022 were drilled to test it deeper. THC 019 intersected 39 metres of ferruginous gossan from 54 metres (Photo 1), then 57 metres of siliceous gossan (Photo 2) to 162 metres. THC 022, drilled about 75 metres further down dip returned 100 metres of ferruginous gossan from 67 metres, followed by a short interval of siliceous gossan. Photo 1, THC 019 Iron-rich Gossan Photo 2, THC 019 Silica-rich Gossan

5 Sipa Resources Limited Exploration Update 26 November It is relevant to explain that we now carry out systematic, and quality controlled, portable XRF analysis of all drilling, in order to be able to react in a very short time to follow up significant results long before the full chemical analyses of all the drill samples are received from the laboratory. The XRF is very good for elements like copper and other base metals, but is not so for precious, platinum group and some other trace elements. XRF analysis of THC 019 and 022, returned significant copper above 0.1%, as shown in red on Figure 2, and we believe, very significant lead (Pb) above 400 ppm, peaking at 1,064 ppm, as shown in green on Figure 2. The significance of the lead is that, whilst basemetals like zinc, nickel and copper are generally one, or more, orders of magnitude leached in gossans, lead is considerably less so. We believe that the lead at these levels in THC 019 and 022 are further indications of base metal sulphides that, along with iron sulphides, have leached to become the ferruginous and siliceous gossans in those drill holes. RC hole THC 024 was targeted to intersect the gossan zone another 225 metres down dip, but was beaten by water volumes and pressure at 210 metres. A diamond core tail will be drilled from it when the diamond rig arrives later this week. Figure 3 Cross Section B B, on 77,5700mE

6 Sipa Resources Limited Exploration Update 26 November Figure 3, above, shows Aircore holes THR 3,321, 3,324 and 3,322 from the recent Aircore programme, each of which intersected narrow gossan intervals. Based on those observations and earlier laboratory, and current XRF, geochemistry, it was decided to RC drill scissor holes THC 020 and 021. Hole THC 020 intersected very siliceous rock (possibly gossanous) from 35 metres to 75 metres, before a narrow intersection of copper carbonates within ferruginous gossan (Photo 3), suggesting copper sulphides oxidized in-situ, and then another 40 metre thick ferruginous gossan intersection below a dolomite interval. Hole THC 023 targeted the gossan zones about 150 metres further down dip and returned a 26 thick ferruginous gossan zone beneath the silica zone. The top 20 metres of the ferruginous gossan again had copper carbonates within the iron-rich gossan (Photo 4), also again suggesting copper sulphides oxidized in-situ. Photo 3 THC 020 Photo 4 THC 023 Azurite & Malachite in Gossan Malachite in Gossan The lower gossan zone was only drilled for about 60 metres, before the hole was lost, due again, to water problems. THC 027 then targeted the gossan zones about 200 metres further down dip of THC 023. After passing through dolomite and sandstone to 140 metres, it then passed through 43 metres of black powder with no drill chips before finishing in dolomite with minor copper carbonate and again failing due to water issues. XRF analyses show a zone of copper mineralisation above 0.1% copper, peaking at 3.2%, in each of the Aircore and RC holes drilled at this locality, as shown on Figure 3, including a significant interval within the black powder. The present interpretation (Figure 3) is that the gossan zone dips steeper than the final depth of THC 027 (though it is also possible that the black powder may be completely decomposed gossan) and this hole will be used as a precollar for a diamond core tail.

7 Sipa Resources Limited Exploration Update 26 November Two scissor holes THC 025 and 026 were targeted at the best section of a linear, east northeast trending, copper (and multi-element) anomaly outlined from Aircore drilling around 77,600mE, 718,6500mN (see Figure 1). Strongly anomalous copper (>0.1%) is associated with carbonaceous alteration and abundant quartz veining. Both scissor holes failed to intersect the source of the secondary copper mineralisation, but the southern hole, THC 026, stopped short of testing the anomaly due to water problems. This presents another opportunity for diamond drill testing. We are very pleased with this recent progress. Whilst we recently had high hopes of a quick fix to finding the primary sulphide source of the very extensive Enigma Secondary Copper Blanket, based on interpreted encouraging results of geophysical Induced Polarisation and Electromagnetic surveys, the subsequent diamond drilling programme was not successful, probably because of the unexpected extreme depths of weathering and the influences of conductive carbonaceous and pyritic black shales. We believe, however, that the recent Aircore and RC intersections of very significant thicknesses (up to 100 metres) of gossans representing oxidised semi-massive, to massive sulphides, at least in part copperbearing, are a breakthrough to discovering what we have been searching methodically for at Thaduna for a number of years that is, very large copper, and perhaps other metals, sulphide deposits. EAST AFRICAN GREENFIELDS EXPLORATION INITIATIVE As part of our long standing policy of adding to, developing, or turning over, our greenfields exploration portfolio, Sipa has decided to explore in East Africa. We are therefore pleased to announce that six Exploration Licences, covering some 2,200 square kilometres, have just been granted in north central Uganda. This exploration initiative results from a carefully considered approach consistent with Sipa s 25 year long greenfields exploration efforts, which successfully outlined two new Mineral Provinces in Western Australia in the 1990 s the Panorama VHMS Copper Zinc, and the Ashburton Gold, Provinces. This new initiative is based, in part, on beliefs that: outcropping orebodies are easier to find, and evaluate, compared with those buried under cover sands and rocks Australia is a very mature exploration destination, where most, if not all, major outcropping ore deposits have been found, compared to most of East Africa our successful approach in Australia can be applied to great advantage in an effectively new frontier, with many characteristics of the

8 Sipa Resources Limited Exploration Update 26 November Australian geological/geophysical/geochemical environment that we are so familiar with Sipa s Ugandan effort is being conducted through a Joint Venture, with Sipa owning 80% and the remaining 20% owned by Geocrust Pty Ltd, a company owned by Dr Nick Archibald, an internationally recognised economic and structural geologist. The venture has evolved from early field reconnaissance, through acquisition of very large and relatively new geophysical/geological/geochemical data sets covering Uganda, Tanzania, Rwanda and Kenya. These data sets were collated and interpreted by a specialist geophysicist, with extensive East African experience, and Dr Archibald. Additional fieldwork within highly prospective areas thus identified, has initially resulted in the grant of six licences covering some 125 kilometres of strike of rocks considered prospective for, primarily, very large base metal deposits. We are well advanced to commence exploration in early 2013, having determined the most effective geochemical/geological approach to fast track potential discovery. We have also set up very efficient administrative and logistical structures to allow exploration to commence. Uganda is presently a stable and very safe country, with government policies strongly encouraging investment in, and development of, the mining/exploration, petroleum, agricultural and tourism industries. We regard our initiative as being a first mover opportunity, as Uganda has not yet received the relatively intense exploration, and subsequent mining, attention that neighbouring Tanzania and the Democratic Republic of Congo (or for that matter, West Africa) have attracted, whilst sharing much of the same geological prospectivity. The geology of Uganda ranges from Archaean Greenstone Belt rocks (like those hosting the world class gold camps of Western Australia, Tanzania and the Democratic Republic of Congo) through Proterozoic metamorphic terrains (like Broken Hill in NSW) to young and presently active volcanic terranes of the Western and Eastern Rift Valleys. The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr M G Doepel who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Doepel is a full-time employee of Sipa Resources Limited. Mr Doepel has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Doepel consents to the inclusion in this report of the matters based on his information in the form and context in which they appear. For more information: Mike Doepel, Managing Director Sipa Resources +61 (0) info@sipa.com.au