Sipa Resources Limited (ASX: SRI) has kicked off a comprehensive reverse circulation (RC) drill programme at its Paterson North project in Western Australia.
The exploration activity is part of a Farm In and Joint Venture Agreement with Rio Tinto Exploration Pty Limited (RTX) which Sipa currently manages.
The programme is expected to run for approximately six weeks, comprising 3000m to 4000m of RC drilling testing primarily regional targets.
It follows an extensive target generation, review and prioritisation programme that leveraged the combined expertise of Sipa and RTX.
Drilling has commenced slightly ahead of the schedule from the previously announced timeline of late June / early July.
Funding for the drill programme has been provided by RTX as part of its farm-in commitment to earn, in stages, up to 80% of the project. As part of the 2022 exploration programme, Sipa and RTX will also be implementing airborne electromagnetics and gradient array IP to obtain additional geophysical data over the project area.
Drilling at Paterson North marks the commencement of a busy field season for Sipa, with additional drill programs set to commence in July / August at two other sites within the company’s northern WA project suite;
- Barbwire Terrace, a 50/50 joint venture between Sipa and Buru Energy Limited (with Sipa as the operator), prospective for Pb/Zn mineralisation; and
- Wolfe Basin, a 100%-owned project with drilling planned in close proximity to base-metals anomalism observed in Sipa’s 2020 RC drilling programme.
The commencement of drilling at Paterson North marks an exciting step forward for the Company and its farm-in partner, Rio Tinto Exploration,” Sipa Resources Managing Director, Pip Darvall, said.
“It follows an extensive period of technical collaboration between the two companies and commencing the program ahead of schedule is a great result. We look forward to updating investors as the campaign progresses.”
RTX Agreement
Under the Terms of the Agreement, RTX can earn a 70% interest in the Paterson North project by sole funding expenditure of $12M (being $6M to earn 55% and a further $6M to earn to 70%) and increase its interest to 80% by sole funding to the earlier of a JORC resource with A$1 billion of in-ground value or the completion of an ‘Order of Magnitude Study’.
Sipa is the current manager of the Paterson North Project.
