ASX-listed Sipa Resources Ltd (ASX:SRI) has started diamond drilling at the Paterson North joint venture project in Western Australia, where the company and Rio Tinto (ASX:RIO) Exploration (RTX) are on the hunt for copper and gold.
The 1,400-metre drill program will test multiple targets along two main trends in separate parts of the project and will be helicopter-supported to minimise on-ground impact as well as to meet rehabilitation requirements.
These targets were identified using a detailed analysis of the geophysical data collected to date, together with results from previous drilling.
The program is expected to take about six weeks to complete.
Paterson North project showing the target areas for 2023 drilling.
"Delighted"
“We are delighted to be back on the ground at Paterson with drilling currently underway in the northern target area,” Sipa Resources managing director Pip Darvall said.
“In the build-up to the commencement of drilling, we have worked closely with RTX to design a program to test priority target areas.
“I look forward to providing regular updates as this program advances.”
Heli-supported diamond drilling in progress at Paterson North.
Strong backing
The project is part of a farm-in and joint venture agreement between RTX and Sipa, where the latter is the manager of the project.
Under the terms of the agreement, RTX 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 $1 billion in-ground value or the completion of an ‘Order of Magnitude Study’.
To date, RTX has spent about $4.9 million on the project.