Sipa “delivering the goods”, says Gordon, as it gears up for further drilling in the Paterson
11th August 2017
Resources Rising Stars
Sipa Resources (ASX: SRI) has continued to deliver strong exploration results from its highly prospective Patersons North (WA) and Kitgum Pader (Uganda) projects and is highly leveraged to exploration success, according to leading Sydney resource analyst Mark Gordon.
In a comprehensive note released by Independent Investment Research (IIR) on the eve of Diggers & Dealers, Gordon says that, with a market capitalisation of just $12 million, Sipa is ideally placed to follow in the footsteps of exploration success stories such as Sandfire (SFR), Breaker (BRB) and Sirius (SIR).
“With exploration continuing in both Western Australia and Uganda, we would expect steady news-flow from Sipa, including a diamond drilling program due to commence shortly at Obelisk (in the Paterson Province),” he said.
Sipa has identified a large mineralised system at Obelisk, with recent drilling testing below a 4km aircore copper anomaly, returning intersections of up to 102m at 0.09% Cu and 46m at 0.12% Cu.
Gordon says these broad anomalous intercepts have a similar signature to other big discoveries in the region including Telfer, Magnum and Calibre.
“The anomalism is interpreted as a halo to a deeper mineralised system, with this being supported by coincident magnetic and gravity anomalies,” he said.
A 1,500m deep diamond drilling program is scheduled to commence at Obelisk in the near future, which will be closely watched by the market.
Meanwhile, at Kitgum Pader in Uganda, ongoing drilling at the Akelikongo nickel-copper discovery has continued to highlight the potential of an emerging intrusive-related discovery.
“This work confirms that the system is still open down-plunge to the north-west, and indicates that the tenor of mineralisation increases down-plunge from the latest drilling, as supported by the presence of strong EM anomalies which form compelling drill targets.”
To view the full August 2017 IIR report on Sipa Resources, click here.
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