Sipa Resources Ltd (ASX:SRI) is forging ahead with exploration activities at the Paterson North Project, which is subject to a farm-in and joint venture agreement with Rio Tinto (ASX:RIO) Exploration.
Sipa, which is managing the project, hit the ground with a reverse circulation (RC) drill program at Paterson North in late June, wrapping up in mid-August.
Assays are in
The RC drilling tested selected target areas by sampling the prospective Proterozoic basement rocks after penetrating more recent sedimentary cover.
The company has received assays from the first batch of samples submitted from four holes drilled in the northern part of the project area, testing a prominent magnetic feature. It awaits the results from a further 18 holes drilled elsewhere on site.
In the initial batch of assays, a peak result of 517 parts per million copper was returned in PNRC0003 from 125 to 126 metres depth.
Sipa will conduct a further review of the results, including geochemical pathfinders, when all the results are in.
What’s next?
With this round of drilling done and the remaining samples at the lab, further works are underway on site to support future drilling.
A gradient array induced polarisation (GAIP) geophysical survey has just been conducted in the southern part of the tenement package, extending the area covered in previous surveys.
The data from this work will be added to the existing geophysical dataset to support future drill targeting efforts.
Further GAIP surveys are also planned for the northern part of the project area for late October.
Sipa Resources managing director Pip Darvall said: ‘The results from Paterson North are starting to flow in, with further exploration activities continuing to advance.
“While the first four holes did not intersect significant mineralisation, we look forward to receiving the assays pending from the remaining 18 holes drilled.
“At the same time, we continue to build a pipeline of targets for future drill programs across areas of the project that are almost completely untested.
“The ongoing works program reflects our confidence in the Paterson North project, and we will continue to provide updates as work progresses and assays are received.”
Agreement with Rio
Under the terms of the agreement, Rio Tinto can earn a 70% interest in the project by sole funding expenditure of $12 million – being $6 million to earn 55% and a further $6 million to earn to 70% – and increase its interest to 80% by sole funding to the earlier of a JORC resource of A$1 billion in-ground value or the completion of an ‘order of magnitude study’.