Sipa Resources Limited (ASX: SRI) has received proof of concept and a significant technical success in its drilling programme at the Barbwire Terrace Project in Western Australia.
Exploration is being undertaken under a 50/50 joint venture (JV) with Buru Energy Limited (Buru), with Sipa as the operator.
Drilling is being co-funded by the Western Australian government’s Exploration Incentive Scheme which will provide up to $180,000 support to the JV for drilling costs.
The JV is currently testing one portion of its extensive tenement holding, which is highly prospective for lead-zinc mineralisation, sitting in an analogous geological setting to existing lead-zinc deposits along the Lennard Shelf on the north-eastern margin of the Fitzroy Trough.
The first hole was completed with a final depth of 410m, and the second hole is currently in progress at ~330m. Interpreted dolomitised Pillara Limestone was intersected at 290m below surface in the first hole (BWTDD001) and persisted to the end of the hole.
In the second hole BWTDD002/003, located some 20km to the southeast, dolomitised limestone has been intersected at 193m below surface. The presence of dolomitised limestone is coincident with the gravity high along the southwestern margin of the Fitzroy Trough, analogous to limestones and dolomites of the Lennard Shelf, lying along the northeast margin of the trough, which host significant lead-zinc deposits.
More encouraging still, the dolomitised limestones lie at a considerably shallower depth than modelled from geophysics and seismic data, a significant economic advantage should a discovery be made. In core retrieved from both holes, the limestone is dolomitised, hydrothermally altered, vuggy, brecciated and fractured throughout.
Numerous late-stage carbonate-pyrite veins cross-cut the unit, along with zones where injection of fine grained sulphidic material has fractured the surrounding dolomite, resulting in the development of significant pyrite rims along the contacts. These features are indicative of mineralising processes. Handheld XRF (pXRF) readings in selected spot locations on the core from BWTDD001 returned up to 1071ppm Pb, and 737ppm Zn.
We have already achieved proof of concept and a significant technical success with our first drillholes intersecting the target stratigraphy at shallow depths,” Managing Director, Pip Darvall, said.
“Evidence of dolomitisation, hydrothermal fluid alteration, brecciation and abundant sulphides is very encouraging and entirely consistent with the areas proximal to significant lead-zinc deposits on the Lennard Shelf. Drilling is continuing on the second hole and further updates will be provided in due course.”