Sipa Resources Ltd (ASX:SRI) has received assay results from three diamond drill holes that form part of an exploration program at the Barbwire Terrace Project joint venture southeast of Broome in Western Australia.
The 50/50 JV with energy company Buru Energy Ltd (ASX:BRU) set out to discover lead-zinc mineralisation in an analogous geological setting to the zinc-lead deposits along the Lennard Shelf.
Proof of concept
Three diamond holes were drilled over 1,412 metres at up to 20 kilometres spacing along strike. The broad-spaced reconnaissance program achieved an initial ‘proof of concept’ within a portion of the extensive tenement holding.
This latest drilling at Barbwire Terrace was co-funded by the WA Government’s Exploration Incentive Scheme, with up to $180,000 to be provided to the JV towards drilling costs.
The team observed base metal sulphides in drill core from all three holes within large thicknesses of variably altered Pillara Limestone, the host to the zinc-lead deposits along the Lennard Shelf.
Initial geological observations and elevated readings in handheld XRF confirmed the presence of lead and zinc sulphides.
Assay results, however, were not in line with the initial observations, with the best intersection of 3,050 parts per million (ppm) or 0.3% zinc in hole BWTDD004 within an intercept of 5 metres at 1,301 ppm (0.13%) zinc, compared with typical background levels of greater than 50ppm zinc or lead.
Base metal sulphides
Detailed examination of the core has shown that the base metal sulphides are typically found along fracture planes and lining the surfaces of the numerous calcite veins and vughs observed in the dolomitised Pillara Limestone, rather than disseminated throughout the entire rock mass.
Zones of more massive sulphide mineralisation observed in core from BWTDD003 returned low-level results for zinc and lead and further investigations are underway to understand why.
The JV will conduct a detailed review of the assay results prior to finalising plans for follow-up exploration at the project.
Mineralisation in targeted rock formations
Sipa Resources managing director Pip Darvall said: “While assay results from the drill program at Barbwire Terrace are below our initial expectations, the joint venture remains very encouraged by the confirmation of the geological concept; with all three holes over a 40-kilometre + strike length identifying mineralisation within the targeted rock formations.
“Further review of the drilling program and assay outcomes is required prior to the JV determining the next phase of exploration at the project.
“Sipa maintains a steady exploration pipeline, including working to finalise our exploration budget with Rio Tinto (ASX:RIO) exploration ahead of the next round of drilling at Paterson North and we will keep the market updated on progress.”
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