PROGRESS REPORT
5 September 2016 | Page 1 of 14
Extensive Gold-Copper System Discovered in Initial
Drilling at Obelisk Prospect North Paterson Province
Strong results over +1km strike length from maiden Aircore program
Highlights:
•
Assay results received from the first 19 holes of the current maiden 10,000m aircore/RC
drilling program at the >4km long Obelisk copper-gold anomaly, Paterson North Project
•
The results are considered to be extremely significant for this stage of exploration, with strong
gold-copper-silver-molybdenum-tungsten anomalism returned over +1km of strike
•
Copper values of >250ppm Cu and gold values of >20ppb Au were returned in 15 of the 19
wide-spaced reconnaissance holes, with the more significant mineralised intercepts including:
o
4m at 0.42g/t Au from 85m in PNA007; and
o
8m at 0.28g/t Au, 0.44g/t Ag, 0.11% Cu, 36ppm Mo and 141ppm Tungsten (W) from
86m including 1m at 1.26g/t Au from 89m in PNA007
•
The high tenor of widespread anomalism, together with high gold values of up to 1.26g/t
and the presence of significant copper silver molybdenum and tungsten, is analogous to the
metal associations other discoveries in the district, such as the >1Moz Calibre and Magnum
deposits.
•
The mineral system at Obelisk remains open in all directions with drilling expected to
continue up until 10 September. Additional drilling is planned to extend the area where the best
grades were encountered prior to completion of the current program.
•
This release relates to the first batch of assay results with the remainder still outstanding.
These are expected to be progressively received over the coming weeks, providing continued
strong news-flow from this exciting emerging project.
Sipa Resources Limited (ASX: SRI) is pleased to advise that initial reconnaissance aircore drilling at its
Great Sandy Copper-Gold Project, part of its Paterson North Project in the Paterson Province of WA,
has outlined an extensive copper-gold mineral system.
The Company commenced its maiden drilling program last month using a multi-purpose Aircore and
Reverse Circulation drilling rig contracted from Strike Drilling.
The program, comprising up to 10,000m of aircore/RC drilling, is designed to test the extensive (>4km
strike) primary copper-gold-anomaly, known as the Obelisk prospect, within the Great Sandy Tenement.
To date, over 1km of strike has been tested with assays received for the first 19 aircore holes (out of a
total of 36 holes completed to date).
Of these 19 holes, 15 returned strongly anomalous copper values of >250ppm and gold values of
>20ppb, highlighting the potential for a significant new mineral discovery. The tenor of the anomalism
and the metal association is similar to that which led to the discovery of other significant deposits in the
region including the >1Moz Calibre and Magnum deposits.
While it is too early to draw any definitive conclusions, the results received to date have significantly
exceeded Sipa’s expectations for this stage of exploration, highlighting the potential of the Paterson North
tenements to host a significant greenfields mineral discovery.
REGISTERED OFFICE AND POSTAL ADDRESS: 12-20 Railway Rd Subiaco 6008 Western Australia
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ASX REPORT
5 September 2016 | Page 2 of 14
“These results tick virtually every box for this early stage of exploration,” said Sipa’s Managing Director,
Lynda Burnett.
“Our initial objective was at least to replicate the anomalous results achieved by Ming Gold in their limited
reconnaissance drill program. The assays we have seen so far go considerably beyond that, returning
very significant copper and gold values, with associated tungsten, molybdenum and silver over a
considerable strike length.
“This metal association would be very familiar to explorers in this district, and is clearly analogous to what
was seen at Antipa Minerals’ Calibre discovery. While it is far too early to make any specific comparisons
to this style of discovery, we are very excited by what we have seen so far in terms of its dimensions, the
tenor of the anomalism and its location, in the southern halo of an interpreted granite intrusion.
“Drilling is continuing and we expect to see results continue to flow in over the coming weeks. With the
rig scheduled to continue operations until 10 September, we are able to potentially expand the footprint
of this system with further drilling along strike.
Sipa’s Paterson North Project comprises the Great Sandy Copper-Gold tenement (E45/3599), where
Sipa can earn up to an 80% interest for expenditure of $3 million over 4 years under a recently announced
Farm-in and JV agreement with privately owned Ming Gold Limited (Ming), and Sipa’s wholly owned
Anketell tenement (ELA45/4697).
The location of the Paterson North Project is shown in Figure 1 below.
Figure 1 – Sipa's Paterson North copper-gold projects
Detailed discussion of results
To date, over 1km of strike has been tested with assays received for the first 19 aircore holes (out of a
total of 36 completed to date). Of these 19 holes, 15 returned strongly anomalous copper values of
>250ppm and gold values of >20ppb.
REGISTERED OFFICE AND POSTAL ADDRESS: 12-20 Railway Rd Subiaco 6008 Western Australia
ABN 26 009 448 980 • TELEPHONE: (08) 9388 1551 • FAX: (08) 9381 5317 • E-MAIL: [email protected]
ASX REPORT
5 September 2016 | Page 3 of 14
As shown in Figure 2, the strongest gold and copper results also generally correlate with strongly
anomalous silver, molybdenum and tungsten. The metal association is similar mineralisation intersected
elsewhere in the district and indicates a strong relationship to intrusive granites in the area.
This is a similar style of anomalism to that which that hosts the >1Moz Magnum and Calibre deposits
within the adjoining ground held by Antipa Minerals (ASX: AZY), where Rio Tinto Exploration is currently
spending up to $60 million to earn a 75% interest.
The mineralisation is hosted in a metamorphosed and hydrothermally altered gabbro associated with a
strong gravity feature immediately to the south of an interpreted non-magnetic granite intrusion. The
mineralisation is also associated with magnetite alteration.
Figure 2 – Plan view of anomalous geochemistry in drill-holes completed to date
Table 1 shows the hole locations with results to date included in Table 2
Table 1 – Drill-hole location and Depth
Hole
UTME
UTMN
RL
Total Depth
Dip
PNA001
392763
7719006
246
100
-90
PNA002
392740
7719008
237
89
-90
PNA003
392686
7719010
229
103
-90
PNA004
392665
7719012
227
97
-90
PNA005
392887
7718952
219
110
-90
PNA006
392839
7718960
223
94
-90
PNA007
392792
7718962
240
95
-90
PNA008
392764
7718906
210
91
-90
REGISTERED OFFICE AND POSTAL ADDRESS: 12-20 Railway Rd Subiaco 6008 Western Australia
ABN 26 009 448 980 • TELEPHONE: (08) 9388 1551 • FAX: (08) 9381 5317 • E-MAIL: [email protected]
ASX REPORT
5 September 2016 | Page 4 of 14
Hole
UTME
UTMN
RL
Total Depth
Dip
PNA009
392714
7718909
233
100
-90
PNA010
392664
7718911
242
83
-90
PNA011
392611
7718906
235
85
-90
PNA012
392742
7719112
224
91
-90
PNA013
392687
7719112
236
85
-90
PNA014
392636
7719109
230
102
-90
PNA015
392589
7719111
234
90
-90
PNA016
392542
7719125
241
91
-90
PNA017
392197
7719346
225
81
-90
PNA018
392301
7719345
227
95
-90
PNA019
392405
7719356
231
107
-90
Table 2 – Table of Results
Hole
From
To
Width
Au
Ppm
Ag
ppm
Cu
ppm
Mo
ppm
W
ppm
DET
0.001ppm
DET
0.01ppm
DET
0.2ppm
DET
0.05ppm
DET
0.1ppm
Anomalies
Coloured Au >20ppb
Ag
>0.1ppm
Cu
>250ppm
Mo
>10ppm
W
>50ppm
PNA001
77
81
4
0.001
0.27
127
3.5
61.6
PNA001
81
85
4
0.001
0.11
345
2.34
33.8
PNA001
85
89
4
0.4
596
1.97
26.2
PNA001
89
93
4
0.007
1.13
580
1.38
6.5
PNA001
93
97
4
0.004
0.06
102.5
0.87
5.2
PNA001
97
100
3
0.002
0.02
17
1.1
39.3
PNA002
77
80
3
0.006
0.11
225
3.07
41.5
PNA002
80
82
2
0.021
0.05
911
2.01
13.4
PNA002
82
86
4
0.001
0.02
24.4
1.91
4.9
PNA002
86
89
3
0.001
19.4
2.53
2.5
PNA003
74
76
2
0.015
0.05
53.8
2.24
71
PNA003
76
80
4
0.001
0.01
58.8
1.85
36.4
PNA003
80
83
3
0.002
0.04
75
2.44
35.1
PNA003
83
84
1
0.003
0.02
135.5
4.42
31.4
PNA003
84
85
1
0.004
0.03
287
3.66
14.7
PNA003
85
86
1
0.003
0.05
495
86.9
13.3
PNA003
86
90
4
0.019
0.16
316
7.67
9.2
PNA003
90
94
4
0.017
0.6
289
10.25
12
PNA003
94
98
4
0.004
0.13
165
5.65
6.4
PNA003
98
103
5
0.007
0.06
158
9.33
5.9
PNA004
74
79
5
0.001
0.24
57.7
5.28
36.6
PNA004
79
84
5
0.002
0.1
47.4
4.23
41.5
<0.001
<0.01
REGISTERED OFFICE AND POSTAL ADDRESS: 12-20 Railway Rd Subiaco 6008 Western Australia
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ASX REPORT
5 September 2016 | Page 5 of 14
Hole
From
To
Width
Au
Ppm
Ag
ppm
Cu
ppm
Mo
ppm
W
ppm
PNA004
84
88
4
0.002
0.2
192
20.4
22.1
PNA004
88
89
1
0.021
0.14
194
18.05
10.7
PNA004
89
91
2
0.014
0.31
631
14.3
15.6
PNA004
91
94
3
0.004
0.07
122.5
3.27
14.9
PNA004
94
97
3
0.009
0.1
151.5
3.84
7.7
PNA005
78
82
4
0.001
0.01
27.6
1.62
7.2
PNA005
82
86
4
0.02
0.01
56.3
2.06
15.3
PNA005
86
90
4
0.001
182.5
1.51
14.3
PNA005
90
94
4
0.003
0.04
110.5
1.38
9.3
PNA005
94
98
4
0.23
318
1.67
18.3
PNA005
98
102
4
0.006
0.06
121.5
1.5
10
PNA005
102
106
4
0.002
0.06
99.2
2.34
7.6
PNA005
106
110
4
0.005
0.06
139
2.35
7.2
PNA006
78
79
1
<0.001
<0.01
25.1
2.03
14
PNA006
79
83
4
<0.001
<0.01
99.9
1.42
8.7
PNA006
83
87
4
<0.001
0.02
165
1.52
13.1
PNA006
87
91
4
<0.001
0.07
119
1.55
6.8
PNA006
91
94
3
0.003
0.05
61.4
3.26
8.6
PNA007
77
81
4
0.002
0.38
120
6.26
23.4
PNA007
81
85
4
0.001
0.03
223
2.21
40.1
PNA007
85
89
4
0.417
0.12
315
1.5
22.2
PNA007
89
93
4
0.001
0.04
49.7
1.41
5
PNA007
93
95
2
0.002
0.01
105.5
1.59
6.3
PNA008
74
78
4
0.002
0.2
56.9
1.44
9.4
PNA008
78
82
4
0.003
0.39
173.5
1.04
10.1
PNA008
82
86
4
0.007
0.05
156
0.95
2.9
PNA008
86
91
5
0.06
15.7
0.93
1.8
PNA009
77
78
1
0.005
0.07
617
0.75
29.1
PNA009
78
79
1
0.01
0.1
1370
1.11
23.7
PNA009
79
80
1
0.026
0.16
3260
1.04
20.2
PNA009
80
81
1
0.005
0.19
4110
0.86
10.5
PNA009
81
82
1
0.006
0.17
2560
0.78
10.2
PNA009
82
83
1
0.013
0.18
2340
0.67
40.9
PNA009
83
84
1
0.002
0.19
2030
0.85
23.9
PNA009
84
85
1
0.006
0.23
2910
0.73
43
PNA009
85
86
1
0.012
0.81
3420
2.9
144
PNA009
86
90
4
0.003
0.22
996
0.64
18.5
PNA009
90
94
4
0.007
0.22
945
1.25
8
PNA009
94
98
4
0.009
0.23
972
1.28
11.7
<0.01
<0.001
<0.001
REGISTERED OFFICE AND POSTAL ADDRESS: 12-20 Railway Rd Subiaco 6008 Western Australia
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ASX REPORT
5 September 2016 | Page 6 of 14
Hole
From
To
Width
Au
Ppm
Ag
ppm
Cu
ppm
Mo
ppm
W
ppm
PNA009
98
100
2
0.025
0.15
479
0.81
6.5
PNA010
72
76
4
0.001
0.06
88.5
0.73
14.2
PNA010
76
80
4
0.017
0.08
362
0.71
11.3
PNA010
80
83
3
0.013
0.07
95.9
0.62
22.6
PNA011
72
76
4
0.001
0.43
68.7
0.76
13
PNA011
76
80
4
0.005
0.14
452
0.5
6.8
PNA011
80
85
5
0.005
0.07
182
0.5
2.6
PNA012
71
75
4
0.001
17
0.75
34.1
PNA012
75
79
4
0.002
<0.01
111
1.57
42.8
PNA012
79
83
4
0.008
<0.01
113.5
0.95
112
PNA012
83
87
4
0.005
0.05
74.1
2.52
7
PNA012
87
91
4
0.007
0.06
67.8
0.88
4.5
PNA013
71
75
4
0.001
0.07
79.1
0.74
111.5
PNA013
75
79
4
0.009
0.13
794
2.11
99.6
PNA013
79
83
4
0.004
0.13
313
0.99
15.5
PNA013
83
85
2
0.003
PNA014
71
72
1
0.001
PNA014
72
73
1
0.001
PNA014
73
74
1
PNA014
74
75
1
PNA014
75
76
1
PNA014
76
77
1
0.005
PNA014
77
78
1
0.001
PNA014
78
79
1
0.002
PNA014
79
80
1
0.002
PNA014
80
81
1
0.001
PNA014
81
82
1
PNA014
82
83
PNA014
83
PNA014
0.07
0.11
298
0.74
16.8
39.9
2.41
40.3
0.16
106
5.89
67.1
0.04
74.2
3.08
84.3
0.03
50.2
2.95
64.4
0.01
48.7
2.06
74.1
0.03
57.1
2.5
54.9
61.5
2.5
57.8
67.3
2.3
47.2
50.4
1.21
34.3
0.09
20.4
1.1
42.8
0.002
0.13
79.1
2.12
46.5
1
0.007
0.67
165.5
2.63
109
84
1
0.004
0.23
450
9.66
214
84
85
1
0.043
0.54
734
43.3
227
PNA014
85
86
1
0.048
0.2
921
59.9
182.5
PNA014
86
87
1
0.205
0.3
1530
49.9
175
PNA014
87
88
1
0.358
0.36
1860
20.4
184
PNA014
88
89
1
0.037
0.66
1450
12.8
192
PNA014
89
90
1
1.265
0.75
1200
61
98.7
PNA014
90
91
1
0.141
0.31
536
12.9
31.8
PNA014
91
92
1
0.107
0.42
861
26.7
39.7
PNA014
92
93
1
0.009
0.29
268
14.75
26.3
PNA014
93
94
1
0.021
0.08
74.9
3.85
16.2
<0.01
<0.001
0.005
<0.001
<0.01
0.03
<0.01
REGISTERED OFFICE AND POSTAL ADDRESS: 12-20 Railway Rd Subiaco 6008 Western Australia
ABN 26 009 448 980 • TELEPHONE: (08) 9388 1551 • FAX: (08) 9381 5317 • E-MAIL: [email protected]
ASX REPORT
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Hole
From
To
Width
Au
Ppm
Ag
ppm
Cu
ppm
Mo
ppm
W
ppm
PNA014
94
95
1
0.014
0.19
196.5
5.13
11
PNA014
95
96
1
0.015
0.42
704
3.93
14.2
PNA014
96
97
1
0.018
0.24
599
32.2
22.2
PNA014
97
98
1
0.035
0.65
502
40.2
47.7
PNA014
98
99
1
0.012
0.3
178
43.8
25.7
PNA014
99
100
1
0.063
0.75
300
5.53
25.1
PNA014
100
101
1
0.013
0.38
264
3.86
20.5
PNA014
101
102
1
0.034
1.43
713
4.55
15.4
PNA015
70
74
4
0.001
0.2
84.1
2.38
78.7
PNA015
74
78
4
0.046
0.17
1190
1.56
73.2
PNA015
78
82
4
0.008
0.16
518
1.5
152
PNA015
82
86
4
0.056
0.24
747
1.02
20.4
PNA015
86
90
4
0.025
0.16
581
0.87
10.5
PNA016
72
76
4
0.001
0.12
62.5
2.59
79.1
PNA016
76
80
4
0.017
0.12
1410
6.97
60.3
PNA016
80
84
4
0.029
0.21
938
3.09
30.3
PNA016
84
88
4
0.034
0.21
679
3.57
8.3
PNA016
88
91
3
0.02
0.24
802
2.1
7.2
PNA018
78
82
4
0.002
0.08
165
1.26
403
PNA018
82
86
4
0.003
0.15
173.5
0.97
150
PNA018
86
90
4
0.021
0.21
1240
0.73
26.2
PNA018
91
94
3
0.032
0.32
1300
1.23
16.4
PNA018
94
95
1
0.003
0.02
97
2.72
25.3
PNA019
86
90
4
PNA019
90
94
4
PNA019
94
98
4
PNA019
98
102
PNA019
102
104
0.001
55.3
1.03
14.6
0.14
203
0.92
22.4
0.001
0.14
193
1.25
37.7
4
0.003
0.12
307
1.37
48
2
0.094
0.71
1030
2.83
29.7
<0.001
<0.01
Table 2 Drillhole LAB assay results
About Sipa
Sipa Resources Limited (ASX: SRI) is an Australian-based exploration company which is targeting the discovery of
significant new gold-copper and base metal deposits in established and emerging mineral provinces with world-class
potential.
In Northern Uganda, the 100%-owned Kitgum-Pader Base Metals Project contains two new mineral discoveries both
made by Sipa during 2014 and 2015. The intrusive hosted Nickel-Copper sulphide mineralisation at Akelikongo is
one of the most significant nickel sulphide discoveries globally for 2015.
At Akelikongo, Sipa has delineated an intrusive-hosted chonolith nickel-copper sulphide system which is outcropping
and plunges shallowly to the north-west for a distance of at least 500m and open to the north- west. Further drilling
is planned at this exciting discovery in the second half of 2016.
REGISTERED OFFICE AND POSTAL ADDRESS: 12-20 Railway Rd Subiaco 6008 Western Australia
ABN 26 009 448 980 • TELEPHONE: (08) 9388 1551 • FAX: (08) 9381 5317 • E-MAIL: [email protected]
ASX REPORT
5 September 2016 | Page 8 of 14
In Australia, Sipa has a Farm-in and Joint Venture Agreement with Ming Gold at the Paterson North Project in the
Paterson Province of North West Western Australia, where extensive primary copper anomalism was intersected at
the Obelisk prospect in primary bedrock adjacent to Rio/Antipa’s Magnum Citadel Project. The Company’s maiden
drilling program at the Obelisk prospect commenced in August 2016.
The Paterson Province is a globally recognized, strongly endowed and highly prospective mineral belt for gold and
copper including the plus world-class Telfer deposits, Antipa Minerals’ Magnum and Calibre gold and copper
deposits, the Nifty copper and Kintyre uranium deposits and the O’Callaghans skarn hosted tungsten deposit.
The information in this report that relates to Exploration Results is based on, and fairly represents, information and
supporting documentation compiled by Ms Lynda Burnett, who is a Member of The Australasian Institute of Mining
and Metallurgy. Ms Burnett is a full-time employee of Sipa Resources Limited. Ms Burnett has sufficient experience
which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she
is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for
Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Ms Burnett consents to the inclusion in
this report of the matters based on his information in the form and context in which it appears.
For more information:
Lynda Burnett
Managing Director
Sipa Resources Limited
+61 (0) 8 9388 1551
[email protected]
Media Inquiries:
Nicholas Read
Read Corporate
+61 (0) 8 9388 1474
[email protected]
REGISTERED OFFICE AND POSTAL ADDRESS: 12-20 Railway Rd Subiaco 6008 Western Australia
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PROGRESS REPORT
5 September 2016 | Page 9 of 14
JORC Code, 2012 Edition – Table 1 report template
Section 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria
JORC Code explanation
Sampling
• Nature and quality of sampling (eg cut channels, random chips, or specific
techniques
specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or
handheld XRF instruments, etc). These examples should not be taken as
limiting the broad meaning of sampling.
• Include reference to measures taken to ensure sample representivity and
the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the
Public Report.
• In cases where ‘industry standard’ work has been done this would be
relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay’). In other cases more explanation may be required, such as where
there is coarse gold that has inherent sampling problems. Unusual
commodities or mineralisation types (eg submarine nodules) may warrant
disclosure of detailed information.
Drilling
• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast,
techniques
auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or other type, whether core
is oriented and if so, by what method, etc).
Drill sample
• Method of recording and assessing core and chip sample recoveries and
recovery
results assessed.
• Measures taken to maximise sample recovery and ensure representative
nature of the samples.
• Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
Commentary
• See Drill sampling techniques (for drilling)
• 4.5 Inch Aircore drilling to refusal followed by face
sampling hammer RC Drilling to end of Hole.
• The recovery was very high, and the samples were
dry and of high quality, with only rare occurrences of
wet samples.
• Groundwater was not encountered in any hole
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PROGRESS REPORT
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Criteria
Logging
Subsampling
techniques
and sample
preparation
Quality of
assay data
and
laboratory
tests
JORC Code explanation
• Whether core and chip samples have been geologically and geotechnically
logged to a level of detail to support appropriate Mineral Resource
estimation, mining studies and metallurgical studies.
• Whether logging is qualitative or quantitative in nature. Core (or costean,
channel, etc) photography.
• The total length and percentage of the relevant intersections logged.
• If core, whether cut or sawn and whether quarter, half or all core taken.
• If non-core, whether riffled, tube sampled, rotary split, etc and whether
sampled wet or dry.
• For all sample types, the nature, quality and appropriateness of the sample
preparation technique.
• Quality control procedures adopted for all sub-sampling stages to maximise
representivity of samples.
• Measures taken to ensure that the sampling is representative of the in situ
material collected, including for instance results for field duplicate/secondhalf sampling.
• Whether sample sizes are appropriate to the grain size of the material
being sampled.
• The nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or total.
• For geophysical tools, spectrometers, handheld XRF instruments, etc, the
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
• Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established.
Commentary
• Logging was conducted on all holes using a digital
quantitative and qualitative logging system to a level
of detail which would support a mineral resource
estimation.
• Each dry sample was collected in a bucket and laid on
the ground in lines of ten. .
• The one sample was sieved for pXRF analysis on site
and one chip sample taken for geological records.
• Samples of Proterozoic bedrock were taken using a
spear and composited up to 4m depending on
information gathered from the onsite XRF. These
samples were sent to the assay laboratory
Samples prep in the lab consists of a single stage mix
and grind.
• Multielement assaying was done via a commercial
laboratory using a four Acid digest as a total
technique with and ICP-AES finish and 30g Fire
Assay for Au with ICP finish
• Lab Standards were analysed every 30 samples
• For onsite analysis an Olympus Innov-X Delta
Premium portable XRF analyzer was used with a
Rhenium anode in soil and mines mode at a tube
voltage of 40kV and a tube power of 200µA. The
resolution is around 156eV @ 40000cps. The detector
area is 30mm2 SDD2. A power source of Lithium ion
batteries is used. The element range is from P (Z15 to
U (Z92). A cycle time of 45 seconds Soil Mode was
used and beam times were 15 seconds.
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PROGRESS REPORT
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Criteria
JORC Code explanation
Commentary
• Selected high samples were analysed in Mineplus
Mode. A propylene3 window was used. Standards are
used regularly to calibrate the instrument.
Verification
of sampling
and
assaying
• The verification of significant intersections by either independent or
alternative company personnel.
• The use of twinned holes.
• Documentation of primary data, data entry procedures, data verification,
data storage (physical and electronic) protocols.
• Discuss any adjustment to assay data.
Location of
data points
• Accuracy and quality of surveys used to locate drill holes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral
Resource estimation.
• Specification of the grid system used.
• Quality and adequacy of topographic control.
• Data spacing for reporting of Exploration Results.
• Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications
applied.
• Whether sample compositing has been applied.
• Whether the orientation of sampling achieves unbiased sampling of
possible structures and the extent to which this is known, considering the
deposit type.
• If the relationship between the drilling orientation and the orientation of key
mineralised structures is considered to have introduced a sampling bias,
this should be assessed and reported if material.
• The measures taken to ensure sample security.
• This is an early drill test into a newly identified
prospect. No verification has been completed yet.
• Twinned holes are not undertaken
• Data entry is checked by Perth Based Data
Management Geologist
• Assays have not been adjusted
• The data is audited and verified and then stored in a
SQL relational data base.
• Drill holes have been located via hand held GPS.
Data
spacing and
distribution
Orientation
of data in
relation to
geological
structure
Sample
security
• No Mineral Resource or Ore Reserve Estimation has
been calculated
• To early to comment on. This is an initial drilling
program
• Drill samples are accompanied by a Sipa employee to
a freight company who freights the samples to the
laboratory in Perth on consignment.
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PROGRESS REPORT
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Criteria
Audits or
reviews
JORC Code explanation
• The results of any audits or reviews of sampling techniques and data.
Commentary
• no reviews have been undertaken as yet.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code explanation
Mineral
• Type, reference name/number, location and ownership including
tenement
agreements or material issues with third parties such as joint ventures,
and
land
partnerships, overriding royalties, native title interests, historical sites,
tenure
wilderness or national park and environmental settings.
status
• The security of the tenure held at the time of reporting along with any
known impediments to obtaining a licence to operate in the area.
Exploration
done
by
other parties
Geology
• Acknowledgment and appraisal of exploration by other parties.
• Deposit type, geological setting and style of mineralisation.
Commentary
• The results reported in this Announcement are on
granted Exploration Licence E45/3599 held by Ming
Gold Ltd. Sipa is earning equity in this tenement by
exploration expenditure up to $3million over 4 years
after which a joint venture with Sipa holding 80% and
Ming holding 20% will be formed.
• At this time the tenement is believed to be in good
standing. There are no known impediments to obtain
a license to operate, other than those set out by
statutory requirements which have not yet been
applied for.
• The only previous mineral exploration activity
conducted was 31 reconnaissance Aircore holes by
Ming Gold Ltd in 2015.
• The geology is interpreted using magnetic and gravity
geophysical data as the entire area is covered by
around 6m of dune sand and then up to 100m of
Permian Paterson Formation sands and siltstones.
Below this the geology interpreted from geophysics is
considered similar to that along strike to the south
east where folded sediments of the Yeneena Group
are intruded by a series of basic to felsic intrusions.
Some of these intrusions are considered to be directly
responsible for mineralisation in the district.
• Many of the deposits are polymetallic with Mo,W Au
Cu Ag being a common metal association an
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PROGRESS REPORT
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Criteria
JORC Code explanation
Drill
hole
Information
• A summary of all information material to the understanding of the
exploration results including a tabulation of the following information for all
Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above sea level in metres)
of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
• If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain
why this is the case.
• In reporting Exploration Results, weighting averaging techniques, maximum
and/or minimum grade truncations (eg cutting of high grades) and cut-off
grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results
and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such
aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should
be clearly stated.
• These relationships are particularly important in the reporting of Exploration
Results.
• If the geometry of the mineralisation with respect to the drill hole angle is
known, its nature should be reported.
• If it is not known and only the down hole lengths are reported, there should
be a clear statement to this effect (eg ‘down hole length, true width not
known’).
Data
aggregation
methods
Relationship
between
mineralisati
on
widths
and
intercept
lengths
Commentary
association which is also understood to represent
intrusion related mineralisation. Telfer, OCallaghans
Magnum, Cailbre are analogues for the mineralisation
encountered in this drill program
• Reported in Text
• All assay results have been reported.
• The orientation of the mineralisation is unknown
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PROGRESS REPORT
5 September 2016 | Page 14 of 14
Criteria
Diagrams
Balanced
reporting
Other
substantive
exploration
data
Further work
JORC Code explanation
• Appropriate maps and sections (with scales) and tabulations of intercepts
should be included for any significant discovery being reported These
should include, but not be limited to a plan view of drill hole collar locations
and appropriate sectional views.
• Where comprehensive reporting of all Exploration Results is not
practicable, representative reporting of both low and high grades and/or
widths should be practiced to avoid misleading reporting of Exploration
Results.
• Other exploration data, if meaningful and material, should be reported
including (but not limited to): geological observations; geophysical survey
results; geochemical survey results; bulk samples – size and method of
treatment; metallurgical test results; bulk density, groundwater,
geotechnical and rock characteristics; potential deleterious or
contaminating substances.
• The nature and scale of planned further work (eg tests for lateral
extensions or depth extensions or large-scale step-out drilling).
• Diagrams clearly highlighting the areas of possible extensions, including
the main geological interpretations and future drilling areas, provided this
information is not commercially sensitive.
Commentary
• Reported in Text.
• All drill assay results relating to extractable elements
are reported.
• As reported in the text
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