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SIPA RESOURCES INTERNATIONAL NL 2002-10-10 ASX-SIGNAL-G

HOMEX - Perth

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We are pleased to announce results of recent first-pass Reverse
Circulation drilling east of the Zeus Gold Deposit located about two
kilometres east of the Mount Olympus gold treatment plant at our
Paraburdoo Gold Project.

The drilling was aimed to test for the extension of the Zeus Pit 4
orebody down plunge to the east and to gain sulphide mineralisation
for the first "exploratory" metallurgical testwork programme to be
conducted on sulphides at Paraburdoo in five years. This
"exploratory" work will focus on establishing an economic solution
to treating refractory sulphide ores at the Paraburdoo Gold Project.

The Zeus Pit 4 orebody provided 175,000 tonnes of ore grading 2.8 g/t
from a pit about 50 metres deep and 180 metres long. The ore was
bracketed between two south dipping faults and was typically 15
metres to 25 metres thick and plunged gently (about 20deg) to the
east. The faults are less than 50 metres apart through Pit 4 but have
separated to about 80 metres apart on the most easterly section
drilled. The southern fault is the Zoe Fault that controls, and
probably feeds, the mineralisation at Zeus and at the Mount Olympus
deposit to the west. Mount Olympus had Identified Mineral Resources
of some 800,000 ounces of gold, 600,000 ounces ofwhich are in
refractory sulphide mineralisation (estimated at a 0.75 g/t gold
Cutoff). The Paraburdoo Gold Project has produced about 200,000
ounces of gold from Mount Olympus oxide and transition ores since
1999. Stockpiled medium and low grade (1.6 g/t and 1.2 g/t,
respectively) ore from Mount Olympus is currently being blended with
high grade oxide ore from the recently commissioned Waugh deposit
(400,000 tonnes at 7.8 g/t gold).

Eight holes have recently been drilled onthree 40 metre spaced
sections east of the Zeus Pit 4. Holes on each section intersected
increasing widths of mineralisation away from the pit, ranging from
7 metres @ 4.4 g/t to 51 metres @ 2.6 g/t (including 22 metres @ 4.0
g/t), indicating an increase in size of the deposit down plunge. It
appears that the gentle plunge of the ore in Pit 4 flattens through
the 120 metres just drilled. The considerable thickness of
mineralisation intersected in ZEC125 (51 metres) is interpreted as
being close to true thickness and hence indicates significant tonnage
potential along strike to the east, particularly as the bounding
faults are diverging, or "opening-up" easterly.

Drilling details are presented in the accompanying table. It should
be noted that this drilling was designed to scope the mineralisation
potential down-plunge of Pit 4, following a re-evaluation of the
structural geology of the Paraburdoo Gold Project. Further drilling
is planned to better define the shape and metallurgical character of
the mineralisation down-plunge of Pit 4.

Samples have been taken for metallurgical testwork and will form part
of the first "exploratory" metallurgical testwork programme for five
years on refractory sulphides from Paraburdoo. Drill hole samples had
been exhausted and mineralisation at the base of the open pits is of
transitional, rather than truly sulphide type.

The testwork will also include sulphide mineralisation collected
from drilling just completed beneath the floor of the Mount Olympus
pit. The drilling was designed in part to provide metallurgical
samples and in part to confirm the down dip and down plunge
projection of a high grade portion of the Mount Olympus oxide orebody
that was mined from the 50 metre interval above the pit floor. That
interval contained a shoot of some 630,000 tonnes grading 6.5 g/t.
Results of this drilling are not yet available.

TABLE OF ZEUS RC DRILL RESULTS - 10 OCTOBER 2002

SECTION HOLE NO FROM (M) TO (M) INTERVAL (M) AU (G/T)

593660E* ZEC119 50 57 7 4.36
ZEC121 50 56 6 1.58
593700E ZEC122 60 70 10 2.51
81 90 9 5.00
ZEC123 49 51 2 1.75
61 63 2 1.27
ZEC124 63 90 27 2.05
including
63 67 4 5.08 and
75 76 1 2.25 and
93740E 81 90 9 3.34
ZEC125 54 105 51 2.61
including
54 57 3 1.53 and
59 67 8 2.95 and
69 91 22 4.02 and
95 105 10 1.57

* holes ZEC120 and 126 were mainly drilled outside of
the fault-bounded mineralised block and did not include significant
gold mineralisation


M Doepel (M AusIMM)
MANAGING DIRECTOR