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    Third Quarter Activities & Cashflow Reports
    03-05 1602


    ASHBURTON GOLD PROJECTS

    PARABURDOO GOLD PROJECT (WHOLLY-OWNED BY SIPA)

    MOUNT OLYMPUS GOLDMINING OPERATIONS

    Sipa's Mount Olympus goldmining operations continue to perform above
    expectation. March Quarter and Year To Date (YTD) production
    statistics are tabled below:

    TABLE 1
    PRODUCTION STATISTICS

    ORE MILLED RECOVERED GRADE GOLD PRODUCED CASH COSTS
    (DRY TONNES) (G/T AU) (OUNCES) ($/OUNCE)
    ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET ACTUAL BUDGET

    March 155,537 144,768 3.08 3.23 15,402 15,035 290 287
    Qtr
    YTD 463,925 437,731 2.91 2.66 43,380 37,453 351 400

    The last Quarter Result is particularly pleasing since it included a
    two week milling trial of the Low Grade Stockpile resulting from
    mining of the Mount Olympus orebody. The trial displaced a similar
    tonnage of run-of-mine higher grade ore (about 3.5g/t), but still
    produced more gold than Budget at effectively the Budget cost.

    The 14 day trial of the Low Grade Stockpile saw:

    * 24,670 tonnes milled

    * 876 ounces of gold produced from a head grade of 1.21g/t

    * Recovery of 91.4%

    This trial (which replaced the drill testing of this stockpile as
    flagged in the last Quarterly) indicated some 31,000 ounces of gold
    remains in the 785,000 tonne Low Grade Stockpile in addition to
    another 21,000 ounces of gold in the 325,000 tonne Medium Grade
    Stockpile which recently returned a head grade of 1.98g/t from a
    similar 14 day milling trial.

    Mining ceased at the Zeus and Peake satellite pits in mid April, but
    milling of that ore will continue through to June at a head grade of
    about 3.5g/t.

    The Medium Grade Stockpile will then be milled prior to commencement
    of production from the Waugh Deposit.

    The Budget for the 3 months to 30 June 2002 is:

    11,000 ounces of gold from 150,000 tonnes milled at a cash cost of
    $250/ounce

    SIPA FORWARD SALES POSITION

    Fixed Forwards: 8,995 ounces at $530.20 strike price

    All gold produced from December 2001 has been sold at AUS dollars
    spot price.

    WAUGH GOLD DEPOSIT EVALUATION

    Early in April we announced a first Resource Estimate for the Waugh
    Gold Deposit located about 3 kilometres east of our Mount Olympus
    Gold treatment plant.

    The Resource Estimate, which totals

    704,000 tonnes @ 5.91 g/t for 134,000 ounces of gold,

    was compiled by independent mining Consultants, Hellman and Schofield
    Pty Ltd. The Resources, which were estimated by Multiple Indicated
    Kriging and which are based on all drilling to date (though the
    deposit remains "open"), are shown in Table 2:

    TABLE 2
    ESTIMATED RESOURCES OF WAUGH GOLD DEPOSIT (@ 0.9G/T CUT-OFF GRADE)

    CATEGORY MEASURED + INDICATED INFERRED
    TONNES G/T OZ AU TONNES G/T OZ AU
    AU AU
    Waugh Sole
    Risk
    100% Sipa 476 000 7.14 109 000 16 000 2.76 1 500

    Limerick
    Hill JV * 120 000 3.60 14 000 92 000 3.06 9 000
    NOL may
    earn 70%

    Total** 596 000 6.43 123 000 1,108 000 3.02 10 500

    CATEGORY TOTAL
    TONNES G/T OZ AU
    AU
    Waugh Sole
    Risk
    %100 Sipa 492 000 7.00 111 000

    Limerick
    Hill JV * 212 000 3.37 23 000
    NOL may earn
    70%
    Total** 704 000 5.91 134 000

    * NOL is Newcrest Operations Limited
    ** All tonnes and ounces have been rounded

    The Estimate is based on 295 Reverse Circulation drillholes totalling
    22,097 metres and five diamond core holes totalling 499 metres as
    shown on Figure 4. Drilling ceased about 4 weeks ago.

    Mine planning for the exploitation of Waugh is proceeding, with
    earthmoving cost estimates and geotechnical advice awaited to
    finalise pit optimisations and Ore Reserve calculations. Preliminary
    pit optimisations indicate that only a small proportion of Resource
    in the Limerick Hill Joint Venture is likely to translate to Reserve.
    A Notice of Intent to Mine will be submitted upon completion of the
    mine plan and it is anticipated that Waugh will be developed in the
    second half of 2002.

    Nearly all of Waugh, as presently defined, is within a 400 metre long
    zone of "Sipa Sole-Risk Excision" from the Limerick Hill Joint
    Venture, which surrounds the Paraburdoo Gold Project (Newcrest
    Operations Limited, as Manager, may earn a 70% interest in Limerick
    Hill). The excision extends at depth to the 400 metre RL, which is
    between 75 metres and 150 metres from surface. Some of the Waugh
    mineralisation extends at depth, as well as to the east, into the
    Limerick Hill Joint Venture (as detailed in the Resource Estimate).

    Waugh is an oxide gold deposit hosted by massive ironstones,
    ironstone-veined siltstones (the ironstone is 'gossan', or oxidised
    pyrite) and brecciated gossanous quartz, collectively referred to as
    the Waugh 'lode'. There is little evidence of surface mineralisation
    at Waugh, with only several small ironstone outcrops (which assayed
    up to 10 g/t gold at surface) scattered over only about 200 metres of
    strike. They are however hosted by a much more extensive zone of
    bleaching and alteration traceable for some 11 kilometres around the
    Diligence Dome. This 'Diligence Dome Alteration Zone', most of which
    is within the Limerick Hill Joint Venture, contains twelve other
    areas of ironstone outcrops and ironstone veining, a number of which
    have strongly anomalous geochemistry.

    There are three very important points regarding the present status of
    Waugh:

    1. Waugh hosts a very high-grade 'shoot' of mineralisation which
    averages more than 30g/t gold, is traceable for over 100 metres
    down-plunge with a horizontal width of typically 15 metres to 25
    metres and a vertical thickness of 10 metres to 15 metres.

    This 'shoot' is hosted by a much larger halo of lower grade
    mineralisation, or 'lode'.

    2. The Waugh lode is open (as shown on Figure 4):

    * down-dip to the west within Sipa's sole-Risk Excision, where:
    WAC 295 intersected 4 metres @ 37.3 g/t gold from 77 metres

    * along strike to the east - the last two sections drilled, which
    were, 60 metres and 80 metres respectively within the Limerick Hill
    Joint Venture - returned the following intersections:

    WAC228 intersected 4 metres @ 9.2 g/t gold from 61 metres
    WAC 234 intersected 4 metres @ 9.2 g/t gold from 154 metres, and

    3. There are three very important implications that result from the
    Waugh discovery:

    * Relatively small outcrops of ironstone may represent much larger
    mineralised systems

    * These systems may contain very high-grade 'shoots', which require
    close-spaced drilling to discover and delineate

    * There are many more outcrops similar to those at Waugh within the
    Diligence Dome Alteration System

    Drilling will recommence at Waugh early May.

    NEW DRILLING TARGETS

    Recent exploration within the two Paraburdoo Gold Project Mining
    Leases have generated four drill targets as shown on Figure 3:

    * at Dinosaur (3 kilometres east of Mount Olympus) there is an 800
    metre long, by up to 200m wide, soil geochemical anomaly that peaks
    at 750ppb gold and contains outcrops of lode similar to the Peake and
    Zeus deposits (recently mined) and ironstones similar to Waugh, with
    strongly anomalous gold (up to 7 g/t). Limited drilling by the
    previous mine operator was ineffective.

    * at the 1,000 metre long Diligence Dome South (5 kilometres east of
    Mount Olympus) there are 250 metres of ironstone outcrops within the
    Paraburdoo Gold Project (750metres of the outcrops lie within the
    Limerick Hill Joint Venture) with anomalous geochemistry similar to
    Waugh.

    * at Dragonfly (5 kilometres southeast of Mount Olympus) there is a
    1.5 kilometre long zone of scattered mineralised outcrops, visually
    and geochemically very similar to Zeus, with surface samples assaying
    up to 5 g/t gold.

    * Marcus, which is located 1.5 kilometres west of Mount Olympus and
    which is part of the same mineralised system, has had some relatively
    wide spaced drilling in the past, but recent detailed mapping and
    sampling suggests the presence of small, but potentially high grade
    shoots, with surface samples assaying to 26 g/t gold.

    All these prospects are earmarked for drilling.

    SIPA - NEWCREST JOINT VENTURES

    Newcrest Operations Limited (Newcrest) operate two Joint Ventures on
    land wholly owned by Sipa (Limerick Hill, where Newcrest may earn 70%
    by spending $3.5 million, and Ashburton Regional, where Newcrest may
    earn 70% by spending $5 million) and five Joint Ventures on land
    owned by others where Sipa, and Newcrest participate 30% and 70%
    respectively in earning interests by exploration expenditure
    (Rocklea, House Creek, Anthiby Well, Ausicaribian and Mt Wall). Table
    3 summarises the Joint Ventures and their locations are shown on
    Figures 1 and 2.

    TABLE 3
    SIPA-NEWCREST ASHBURTON JOINT VENTURES

    JV NAME CURRENT OWNERSHIP INTEREST THAT MAY BE EARNED

    Ashburton
    Regional Sipa 100% Newcrest 70%
    Limerick Hill Sipa 100% Newcrest 70%
    Rocklea Bacome Pty Ltd 100% Sipa 22.5%, Newcrest 52.5%
    Ausicaribian Newgold Hill Mines 100% Sipa 30%, Newcrest 70%
    House Creek Ashburton Gold Mines NL 100% Sipa 22.5%, Newcrest 52.5%
    Anthiby Well Goldfields Exploration 100% Sipa 30%, Newcrest 70%
    Mt Wall Giralia NL 100% Sipa 21.6%, Newcrest 50.4%

    Drilling in the Ashburton over the last three years throughout a 150
    kilometre long mineralised corridor to the northwest of the
    Paraburdoo Gold Project has discovered two areas of very strong and
    persistent gold anomalies:

    * At Cheela Plains there is a "chain" of RAB drill anomalies in the
    weathered rock as deep as 100 metres. Best results to date are:

    * Electric Dingo (Ashburton Regional JV) - 17 metres @ 3.5g/t Au
    * Cheela West (Ashburton Regional JV) - 36 metres @ 2.2g/t Au

    In addition, a significant area of outcropping mineralisation,
    assaying up to 8.8 g/t Au, has been found about 10km west of
    Electric Dingo in the Ashburton Regional Joint Venture and has been
    named New Morning.

    * At Cairn Hill in the Rocklea IV, a prospect named Ibex has returned
    some high grade intersections including:

    * 14 metres @ 5.5g/t Au (including 1 metre @ 500g/t Au cut to 30g/t
    Au for the 5.5g/t average)

    Recent fieldwork in the Limerick Hill Joint Venture has focussed on
    the Diligence Dome Alteration Zone, where detailed mapping, rock chip
    and soil sampling and shallow Reverse Circulation drilling has been
    conducted.

    Four zones of geochemically anomalous ironstones (or 'gossans') have
    been defined and one (Diligence) has been drilled. The others are
    named Diligence Nose North, Diligence Nose South, and Diligence Dome
    South.

    Drilling at Diligence intersected the lode over 420 metres of strike
    with a mineralised zone about 100 metres long returning results
    ranging up to 4 metres @ 20.7g/t Au and averaging 2 metres @ 7.2g/t
    Au from 13 holes out of 22 which returned above 2 gram metres of
    gold.

    Drilling by Newcrest is due to recommence early May, with New
    Morning, the Cheela Chain of Anomalies, Ibex and the Diligence Dome
    being initial targets.

    MORE TO FOLLOW


 
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