SRI report

Bulga Downs - Paradise Bore Gold Deposit
12/6/02 7:12:51 PM



SIPA RESOURCES INTERNATIONAL NL 2002-06-12 ASX-SIGNAL-G


HOMEX - Perth



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We are pleased to announce the results of a diamond drilling
programme recently completed at Sipa's 100% owned Paradise Bore gold
deposit at Bulga Downs in the Eastern Goldfields of Western
Australia.



The aim of the programme was to test for continuity of gold
mineralisation previously intersected in fresh rock down plunge from
the Paradise Bore oxide gold deposit. To that end, nine reverse
circulation precollared diamond drill holes (totalling 2,242 metres)
were drilled over 280m of strike, in part surrounding two previous
holes, which had returned:



PBC 38 15.7 g/t Au over 2m within 6m @ 7.5 g/t Au, at about 190m
below surface.
PBC 44 12.3 g/t Au over 1m within 3m @ 5.5 g/t Au, at about 170m
below surface.



All nine recent holes intersected the lode and five of those returned
potentially ore grade intersections, shown in Table No 1 below. All
results are presented in Table No 2 and intersection positions are
displayed on the Longitudinal Section attached.



TABLE NO 1
SIGNIFICANT INTERSECTIONS
METRES
HOLE NO g/t Au METRES METRES g/t Au BELOW SURFACE



PBCD49 31.1 over 0.6 within 4 @ 6.3 at about 160
PBCD55 17.2 over 1 within 3 @ 6.6 at about 235
PBCD49 13.2 over 1.2 within 3.2 @ 5.7 at about 210
PBCD52 13.6 over 1 within 4 @ 5.1 at about 200
PBCD53 12.4 over 1 within 4 @ 4.4 at about 195



The Paradise Bore oxide gold deposit and prospect is situated within
the Bulga Downs Gold Project which contains a north striking
gold-bearing structure at least 10 kilometres long, as shown by
surface geochemistry and numerous drillhole intersections. There are
no old gold workings.



Sipa discovered Paradise Bore by stream sediment, soil and rock
sampling in 1992, and in 1996 drilled out a small oxide gold deposit
estimated at 120,000 tonnes grading 5.5 g/t of Indicated Resource to
about 60m depth.



The oxide deposit contains seven contiguous high grade intersections
ranging from 23 g/t over 5 metres to 50 g/t over 1 metre. Three drill
programmes over the last nine months have been designed to test for
high grade extensions of the oxide mineralisation within the primary
(or fresh rock) zone.



The Paradise Bore lode in fresh rock is a north striking and steeply
east dipping tabular chlorite-rich shear zone averaging about 5
metres to 10 metres thick with variable sulphide content (less than
5% to 15%), carbonate and quartz veining. The sulphides are dominated
by pyrite, with lesser pyrrhotite and rare arsenopyrite.
Metallurgical tests on the PBC 38 sulphide intersection showed
excellent recoveries by cyanide leach (average 95%). A banded chert,
which forms the footwall to the lode, is a good "marker" unit.



The lode has now been intersected in drill holes over 700m of strike
and as deep as 235m from surface and has potentially ore grade and
width oxidised and fresh mineralisation over much of that distance.



Most of the intersections in fresh rock are spaced about 40m x 40m
apart, which is relatively wide spacing for defining high grade
shoots within this type of shear-zone-hosted gold deposits.



The results obtained to date are regarded as encouraging and we are
presently evaluating the best way to realising commercial value from
the project.



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