Sipa Resources Ltd (ASX:SRI) has started its $1.8 million 2023 field program at Paterson North Project, which is part of a farm-in and joint venture agreement between Sipa and Rio Tinto (ASX:RIO) Exploration (RTX).
It is all systems go at the project with a major heritage survey underway along with clearing access for the highest priority drill targets across the project area.
These targets will be tested in an upcoming drilling program.
Sipa is working closely with the traditional owner group, the Nyangumarta people, to ensure there is no adverse impact on areas of cultural significance.
Six representatives of the Nyangumarta people are on site with Sipa representatives, archaeologists and an anthropologist to confirm that the proposed access routes and drill locations are safe.
Ready for drilling
Sipa has all other approvals in place and the contractors have been finalised for the subsequent drill program, which will be helicopter supported to minimise on-ground impacts and rehabilitation requirements.
Drilling is expected to start next quarter and will test multiple targets along two main trends.
The company has re-established its camp which fortunately for Sipa escaped any damage from Tropical Cyclone Ilsa, which travelled directly over the exploration camp earlier in the year.
“The field season in the Paterson is now in full swing, and our preparations for drilling are rapidly being completed. We look forward to providing updates as they are available and in particular drilling results from the highest priority targets at the project,” Sipa Resources managing director, Pip Darvall said.
RTX agreement terms
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 A$1 billion in-ground value or the completion of an ‘Order of Magnitude Study’.
Sipa remains the manager of the Paterson North Project and to date, RTX has spent ~$4.9 million.