SRI 0.00% 3.9¢ sipa resources limited

SRI announcement out

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    Agreement has been reached for Sipa Exploration NL (Sipa) to farm-into Golden Cross Resources (GCR) 100%-owned Broken Hill Platinum GroupMetals and associated nickel, copper and gold and base metalproperty. The 420 sq km property, consists of ELs 5772, 5784 and MC159 Broken Hill and lies 25 km east of Broken Hill as shown onFigures 1 and 2.Sipa may earn a 70% interest in the Project by completing afeasibility study to bankable standard by May 2006. As part of theagreement, Sipa will purchase 3 million Golden Cross shares on marketand has undertaken to hold the shares until at least April 2003. Sipawill manage exploration and must spend $245,000 by May 2003.On receipt of notice that Sipa intend to commence a feasibilitystudy, GCR must make an election within 90 days that, upon a decisionto mine being made, GCR will either:* contribute to development in accordance with its 30% interest;* dilute to a 20% interest carried to production, repayable from 50%of GCR's share of the free cash flow from the project; or* take a 2.5% net smelter return royalty.The focus of the Project is a poorly-outcropping sinuous belt ofultramafic bodies extending at least 9 km from Mulga Springs in thesouth to Moorkaie in the north as shown on Figure 1. Gossan samplesfrom five localities along this belt have returned very high gradeassay results, commonly with values of 15 to 30 g/t combinedplatinum- palladium as shown on Figure 1. A 120 kg gossan sampletaken from old pits at Mulga Springs averaged 20 g/t platinum, 50 g/tpalladium, .3% nickel, .7% copper and .6 g/t gold, together withsignificant amounts of rhodium, ruthenium, iridium and osmium. Inaddition, some samples of weathered ultramafic, with evidence of onlyminor oxidised disseminated sulphide, have returned assays ofcombined platinum-palladium to 11 g/t.Other ultramafic bodies situated near Mt Darling Creek, 10 km southof Mulga Springs, also contain gossans, also with values of 20 to 30g/t combined platinum-palladium. It is possible these host rocksconnect with the Mulga Springs occurrence, but thin cover largelyobscures outcrop between the occurrences.Only two localities (Mulga Springs and Mt Darling Creek) havereceived significant drilling, and then in very restricted areas,with most holes testing only the oxidised zone. A 1970s drillhole anda recent GCR hole have, however, confirmed significant grades insulphide mineralisation. A drill intersection through the ultramaficbody at Mulga Springs, announced by GCR to ASX in July 200 1,returned 2m of sulphide mineralisation averaging 10.9 g/t platinum,22.6 g/t palladium, 4.45% nickel and 6.12% copper from 45m depth.This nickel-copper sulphide mineralisation indicates that the othergossans enriched in Platinum Group Elements (PGE) with anomalousnickel-copper geochemistry are likely to represent oxidised highgrade massive nickel-copper sulphides hosting the PGE's at depth.Several of these unusually high grade PGE (and nickel-coppersulphide) occurrences have not all been drilled and the Project hasnot been systematically explored for high grade, selective-mineableorebodies, or for bulk-mineable disseminated bodies.The Project may contain in excess of 25 km of strike of thepoorly-exposed ultramafic belt, which may represent a "feeder" tonow-eroded overlying mafic-ultramafic rocks as shown on Figure 3,which illustrates a conceptual model for the mineralisation. Thisfeeder may be capable of hosting the styles of massive anddisseminated mineralisation described above.The Broken Hill Project also hosts a number of mineralised ironstoneoutcrops, including Yellowstone, Iron Blow and Razorback (Figure 1),with copper-gold potential similar to Selwyn or Ernest Henry.Significant portions of the property are concealed by shallow cover,which may hide further mineralisation including Broken Hill-styleorebodies as these rock units may be interpreted to be hidden beneaththat cover.Sipa plans to conduct detailed geological mapping prior todrill-testing of the known PGE-enriched gossans as well as systematicgeological, geochemical and geophysical surveys of the property tolocate other occurrences. Fieldwork will start during the JuneQuarter.The agreement is consistent with GCR's objective of entering intosignificant farm-in arrangements in order to add value to itsportfolio of properties. The farm-in will ensure intensiveexploration activity on the property in the near future, whileallowing GCR to concentrate its attention on other 100%-ownedproperties, such as Adelong and Kempfield.The Figures referred to above and maps showing mineralisation onGCR's Broken Hill property are available - AAP
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