SIPA RESOURCES INTERNATIONAL NL 2002-06-12 ASX-SIGNAL-G
HOMEX - Perth
+++++++++++++++++++++++++ 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.
MORE TO FOLLOW
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