SIPA RESOURCES LIMITED 28 May 2015
• Detailed gravity survey results at Akelikongo show evidence of a mafic/ultramafic intrusive complex associated with the known nickel copper sulphide mineralisation.
• Akelikongo mineralisation is located on a gravity high trend extending from AKD002 for over 700m to the north, a further 400-500m beyond the known extent.
• Several other discreet gravity anomalies may also represent other mafic/ultramafic intrusions.
• RAB and Diamond drilling is underway to test these possible extensions to the mineralisation and the additional gravity targets.
Sipa Resources Limited (ASX: SRI) (the "Company" or "Sipa") is pleased to announce the completion of the detailed gravity survey and the results over the Akelikongo prospect and surrounding areas.
The aim of the gravity survey is to map the structure and extent of the ultramafic intrusion at Akelikongo and also to map and identify other similar intrusions in the surrounding area. The gravity survey coverage and results are represented on Figure 1 as an image of residual gravity. The present extent of drilling over the Akelikongo prospect is shown on Figure 2 with residual gravity, geology and mineralisation.
Figure 1. Akelikongo gravity survey. Residual gravity image with known ultramafics and mineralisation.REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
The residual gravity map indicates there are distinctive gravity highs (red colour) associated with Akelikongo ultramafic intrusion. Based on the gravity, the intrusion is interpreted to extend to the north a further 400-500m beyond the known extent as identified by drilling to date. There are three distinctive gravity highs just to the northeast of Akelikongo and there are also a significant number of other gravity highs within the wider survey area that may also be due to ultramafic intrusive bodies.
Intersections of massive nickel sulphide within the previously completed diamond drilling occurred at depth within a zone of ultramafic near the contact with the footwall granite gneiss. This position corresponds to a sharp gravity gradient in the data that can be mapped out to the north of the presently known nickel sulphide intersections The gravity and the infill soil geochemistry around Akelikongo have highlighted there are a number of targets which are now being tested with RAB drilling. Diamond drill testing will resume once gravity modelling is completed within the next week.
Preparation for RAB drilling at the other emerging targets such as Mt Goma (Ni) and
Lagwagi (Zn) is underway.
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled by Ms Lynda Daley, a who is a Member of The Australasian Institute of Mining and Metallurgy. Ms Daley is a full-time employee of Sipa Resources Limited. Ms Daley has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which she is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Ms Daley consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.
For more information: Lynda Daley, Managing Director
Sipa Resources Limited
+61 (0) 8 9481 6259 info@sipa.com.au
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
Background
The Kitgum-Pader Base and Precious Metals Project covers 7,296 square kilometres in central northern Uganda, East Africa. The Project was generated following the acquisition in 2011 of relatively new airborne magnetic/radiometric data sets over East Africa, and the subsequent geological/metallogenic interpretation of the data sets.
During field reconnaissance in December 2011, rocks were recognised as being strikingly similar to the host 'Mine Series' sequence at the giant Broken Hill Lead-Zinc-Silver Deposit in NSW, Australia, to the northwest of Kitgum, Uganda. Since that time, the company has collected over 50,000 soil samples, along with geological mapping by the late Nick Archibald, Brett Davies and Russell Mason. The results of the field work and subsequent drilling of soil targets has led to the discovery of 2 potentially economic mineral systems.
• the Intrusive hosted Nickel-Copper sulphide mineralisation at Akelikongo; and.
• The Broken Hill-style Lead-Zinc-Silver, at Pamwa.
Akelikongo is one of the standout Ni-Cu-PGE soil anomalies identified to date. The element association and shape of the anomaly led Dr Jon Hronsky to interpret this as a possible "chonolith" being a fertile host for nickel sulphides within a mafic-ultramafic intrusive complex.
At Akelikongo a high MgO intrusion hosts a zone of disseminated Nickel and Copper sulphide mineralisation above a zone of brecciated more massive nickel and copper sulphides. The mineralisation extends into the country rock felsic gneiss indicating further remobilisation.
At Mt Goma in the western Archean greenstone belt a linear zone of strongly oxidised ultramafic has returned nickel in soil XRF values ranging from 0.5% to 1.9% Nickel. A strong copper in soil anomaly is located adjacent to the nickel anomaly.
The Pamwa Zn, Pb, Ag & Cd soil anomaly was first pass drilled using RAB during July and resulted in the discovery of a Broken Hill Type Zn Pb, Cd, Ag mineralised system. Diamond drilling confirmed thin zones of base metal sulphides (sphalerite and galena) in all three holes.
These intercepts are located within a wider Zn, Pb, Ag, Cd anomalous zone defined by a 1000ppm Zn contour and an even larger 1000ppm Manganese (Mn) anomalous zone defined as the "geological host sequence".
Diamond drilling indicates mineralisation is broadly foliation parallel and can be correlated to the detailed soil data.
The geochemistry shows a strong association between Zn-Pb-Cd-Mn a characteristic element suite of
Broken Hill style of mineralisation.
Major mining houses have scoured the world for decades in an attempt to discover the next Broken Hill Type Deposit. Sipa has demonstrated that such world class deposits could be discovered at Pamwa and within the extensive Zn rich Ayuu Alali soil horizons defined by soil sampling during
2013. These horizons contain many of the characteristics described as being typically associated with Broken Hill type SEDEX deposits, via local geochemical associations, geological observations, and the broader interpreted tectonostratigraphic setting of a rifted reactivated mobile belt of probable lower to mid Proterozoic age.
At Lagwagi 70km to the south east in a similar stratigraphic position to Pamwa a zinc and lead in soil anomaly has been identified which requires follow up drilling.
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
JORC Code, 2012 Edition - Table 1 report templateSection 1 Sampling Techniques and Data
(Criteria in this section apply to all succeeding sections.)
Criteria JORC Code explanation Commentary
Sampling techniques
Drilling techniques
• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.
• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
• Aspects of the determination of mineralisation that are Material to the
Public Report.
• In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
• See Drill sampling techniques (for drilling)
• Soil samples are taken initially at 1km line and 100m sample spacing. Infill soil sampling to 200m line and 50m sample spacing and where appropriate down to
25m by 25m.. The samples are taken from about 30cm depth and sieved with a 250# sieve. Soil Sample size is around 150g.
If samples are wet or unsieved, the samples are brought back to camp, dried, then crushed and sieved to -250um.
• The sample is then placed in a small cup with a mylar film on the bottom and analysed by XRF
• For the first 30000 samples one in eight soils were sent for laboratory analysis as a check. LAB checks are no longer conducted as the data is considered to be reliable.
• Drill type is diamond. HQ coring from surface then reduced to NQ from fresh rock.
• Core was oriented using Spear for AKD001 and AKD002 and Reflex ActII RD Rapid Descent Orientation from AKD003 onwards
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
Criteria JORC Code explanation Commentary |
Drill sample • Method of recording and assessing core and chip sample recoveries and • Sample recoveries measured using tape recovery results assessed. measure. • Measures taken to maximise sample recovery and ensure representative • Occasional core loss. mostly 100% nature of the samples. recovery. Core loss marked on Core blocks • Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. |
Logging • Whether core and chip samples have been geologically and geotechnically • Logging was conducted on all holes using a logged to a level of detail to support appropriate Mineral Resource digital quantitative and qualitative logging estimation, mining studies and metallurgical studies. system to a level of detail which would • Whether logging is qualitative or quantitative in nature. Core (or costean, support a mineral resource estimation. channel, etc) photography. Holes have been geotechnically logged. • The total length and percentage of the relevant intersections logged. |
Sub-sampling • If core, whether cut or sawn and whether quarter, half or all core taken. • NQ core has been sawn in half and techniques • If non-core, whether riffled, tube sampled, rotary split, etc and whether geological intervals generally at one metre, and sample sampled wet or dry. but appropriate to specific visual preparation • For all sample types, the nature, quality and appropriateness of the sample mineralisation have been taken preparation technique. • Sample preparation is using commercial • Quality control procedures adopted for all sub-sampling stages to Laboratory Method which includes drying, maximise representivity of samples. sieving and pulverizing.Core samples are • Measures taken to ensure that the sampling is representative of the in situ crushed to 70% -2mm prior to pulverizing. material collected, including for instance results for field duplicate/second- • Pulverising then split to 85% half sampling. • The soil samples were taken from a • Whether sample sizes are appropriate to the grain size of the material residual soil profile and are considered being sampled. representative of the substrate rock. No field duplicates were taken. • Infill samples confirmed and substantiated the initial anomaly. • Soil samples are the homogenized product of weathered rock. |
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
Criteria JORC Code explanation Commentary
Quality of assay data and laboratory tests
• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.
• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.
• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.
• Multielement assaying was done via a commercial laboratory using a four Acid digest as a total technique with and ICP- AES finish and 30g Fire Assay for Au Pt Pd with ICP finish
• Lab Standards were analysed every 30 samples
• For soils An Olympus Innov-X Delta Premium portable XRF analyzer was used with a Rhenium anode in soil and mines mode at a tube voltage of 40kV and a tube power of 200µA. The resolution is around
156eV @ 40000cps. The detector area is
30mm2 SDD2. A power source of Lithium ion batteries is used. The element range is from P (Z15 to U (Z92). A cycle time of 180 seconds Soil Mode was used and beam times were 60 seconds.
• Selected high samples were analysed in Mineplus Mode. A propylene3 window was used. Standards are used regularly to calibrate the instrument..
• Rock chips were spot analysed by XRF with some selected samples sent with drill samples for Laboratory analysis
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
Criteria JORC Code explanation Commentary |
Verification of • The verification of significant intersections by either independent or • This is an initial drill test into a newly sampling and alternative company personnel. identified prospect. No verification has been assaying • The use of twinned holes. completed yet. • Documentation of primary data, data entry procedures, data verification, • Twinned holes are not considered data storage (physical and electronic) protocols. necessary at this stage • Discuss any adjustment to assay data. • Data entry is checked by Perth Based Data Management Geologist • Assays have not been adjusted • The soil data is reviewed by the independent consultant Nigel Brand, Geochemical Services, West Perth The data is audited and verified and then stored in a SQL relational data base. |
Location of • Accuracy and quality of surveys used to locate drill holes (collar and down- • Drill holes and soil and rock points have data points hole surveys), trenches, mine workings and other locations used in Mineral been located via hand held GPS. Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control. |
Data spacing • Data spacing for reporting of Exploration Results. • No Mineral Resource or Ore Reserve and • Whether the data spacing and distribution is sufficient to establish the Estimation has been calculated distribution degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied. |
Orientation of • Whether the orientation of sampling achieves unbiased sampling of • To early to comment on. This is an initial data in possible structures and the extent to which this is known, considering the drilling program relation to deposit type. geological • If the relationship between the drilling orientation and the orientation of key structure mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. |
Sample • The measures taken to ensure sample security. • Drill samples are accompanied to Entebbe |
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
Criteria JORC Code explanation Commentary
security by a Sipa employee. Until they are consigned by air to Johannesburg.
Audits or reviews
• The results of any audits or reviews of sampling techniques and data. • no reviews have been undertaken as yet.
Section 2 Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status
• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.
• The results reported in this Announcement are on granted Exploration Licences held by Sipa Exploration Uganda Limited, a 100% beneficially owned subsidiary of Sipa Resources Limited.
• .At this time the tenements are believed to be in good standing. There are no known impediments to obtain a license to operate, other than those set out by statutory requirements which have not yet been applied for.
Exploration done by other parties
• Acknowledgment and appraisal of exploration by other parties. • No previous mineral exploration activity has been conducted.
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
Criteria JORC Code explanation Commentary
Geology • Deposit type, geological setting and style of mineralisation. • The Kitgum-Pader Project covers reworked, high grade metamorphic, Archaean and Proterozoic supracrustal rocks heavily overprinted by the Panafrican Neoproterozoic event of between 600 and 700Ma. The tectonostratigraphy includes felsic ortho- and para- gneisses and mafic and ultramafic amphibolites and granulites and is situated on the northeastern margin of the Congo Craton. The geology and tectonic setting is prospective for magmatic Ni, Broken Hill type base metal and orogenic Au deposits
Drill hole
Information
Data aggregation methods
• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level - elevation above sea level in metres) of the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from
the understanding of the report, the Competent Person should clearly explain why this is the case.
• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.
• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.
• The assumptions used for any reporting of metal equivalent values should be clearly stated.
• Reported in Text
• All assay results have been reported. Where data has been aggregated a weighted average technique has been used.
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
18 May 2015
Criteria JORC Code explanation Commentary
Relationship between mineralisation widths and intercept lengths
• These relationships are particularly important in the reporting of
Exploration Results.
• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').
• It is interpreted that these widths approximate true width.
Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.
• Reported in Text.
Balanced reporting
Other substantive exploration data
• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.
• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
• All drill assay results are reported.
• Soil data that a statistically important are shown (the database comprises more than 50000 samples with up to 600 samples collected every week.
Gravity specifications: Gravity meter:-Scintrex CG5. Surveying- RTK DGPS: Leica SR530
Station spacing-50m.
Line spacing- generally 100m.
Data reduced to spherical cap Bouguer anomaly.
Further work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).
• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
• As reported in the text
REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872
TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: info@sipa.com.au
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