SIPA in this monthss Share Mag

Sipa (SRI)

SRI has announced an initial resource for its Waugh prospect and the stock promptly experienced a bout of profit-taking.


That's not unusual for a stock that has rallied sharply from around eight cents to a peak of 42 cents per share.

The initial resource is probably just a taste of things to come and the stock may be a good buy during this period of profit-taking. The initial resource is 704,000 tonnes grading 5.91 grams per tonne of gold for 134,000 ounces. The lode is open to the east, but perhaps more importantly, Sipa and its joint venture partner, Newcrest Mining, have another 11 kilometres of prospective strike to test.

This strike extent contains 12 targets with the same ironstone outcrops and ironstone veining at Waugh, as well as strongly anomalous geochemistry.

SRI's Ashburton exploration ground is a "target rich environment". The company has plenty of targets to follow-up and has the luxury of solid cashflow from its Mt Olympus mine.

The stock could easily perform strongly once exploration picks up again.