Ann: Completion of 2 Diamond Drill Holes at Enigm, page-2

re: Ann: Completion of 2 Diamond Drill Holes ...
Sipa Resources Limited
ABN 26 009 448 980
27 March 2012
Two Diamond Drillholes Successfully Completed
at the Enigma Copper Prospect
Sipa is pleased to announce the completion of two diamond drillholes at the
Enigma Copper Prospect within Sipa’s 100%-owned Thaduna Copper Project in
the Gascoyne Region of Western Australia.
• Both holes targeted Induced Polarisation (IP) geophysical anomalies
beneath the very extensive Enigma ‘Secondary Copper Blanket’
• Both holes intersected highly altered rocks and copper mineralisation:
! THD002 returned ‘spotty’ highly anomalous copper results
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in clays
(to 4.5% Cu) and ironstones (to 1.9% Cu) in rocks that are deeply
weathered to 400 metres. Beyond 400 metres, there is visible very
fine grained, disseminated chalcopyrite and in thin fractures in fresh
sandstone
! THD003 returned spotty copper sulphides (mainly chalcopyrite), in
stockwork carbonate and chlorite veins and fractures in altered
dolomite and sandstone
! A third hole, again targeting an IP anomaly beneath the secondary
copper blanket has commenced
! The IP geophysical survey continues, with about half the area to be
covered remaining, including coverage of three VTEM
electromagnetic anomalies, that may be more indicative of massive
sulphides
These results are considered very encouraging, as THD002’s very deep
weathering indicates a very thick mineralised alteration system, and THD003’s
primary copper sulphides shows that the IP geophysical technique is showing
mineralisation. Our challenge remains to find the primary foci of the source of
the very large system of secondary mineralisation at Enigma.

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see attachment for description of XRF analytical techniques Sipa Resources Limited 28 March 2012 2
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: [email protected]
THD002 (see Figure 1), which finished at 465 metres, was aimed at an IP
‘chargeability high’ anomaly, within an intense ‘resistivity low’, as shown on
Figure 2. This anomaly is centred about 300 metres below the secondary
copper blanket.
The hole passed through variably, but generally intensely, weathered rocks
and clays to some 400 metres depth, before finishing in fresh sandstone
and dolomite. Several ironstone, breccia (see photo 2) and finely quartz
veined zones (see photo 1) were intersected. The depth of weathering is, in
our experience, unusual for the Thaduna area, and appears associated with
an intensely deformed alteration/mineralisation system.
XRF analysis, of presently only selective parts of the core, shows ‘spotty’,
very elevated copper (to 4.5% in clays around 296.5 metres) and in
ironstones, which are likely gossanous (to 1.9% around 363 metres). These
high values are not consistent over more than a few 10’s of centimetres, but
are considered significant because they are accompanied by strongly
anomalous cobalt, arsenic, zinc and molybdenum. Very fine grained,
disseminated and fracture controlled chalcopyrite was present in fresh
sandstone from 412 to 430 metres. The core is in the process of being
systematically analysed.
THD003 (see Figure 1), which finished at 310 metres, passed into fresh rock
at 69 metres. It targeted a specific IP chargeability high around 220 metres
(Figure 3), within a resistivity high.
An alternating sequence of dolomite and sandstone was intersected, before
passing through thinner dolomites, siltstones and some thin beds of black
shale through the last 50 metres.
Chalcopyrite (copper sulphide) blebs and disseminations, as confirmed by
portable XRF analyses, were present in carbonate and chlorite veins and
fractures between 91 and 130 metres (see photos 3 & 4) in altered dolomite
and chalcopyrite and minor pyrite were present in chlorite stringers in
sandstone, between 212 and 219 metres.
These two holes are the first effective deep tests beneath the very extensive
Enigma secondary copper mineralised system and the results are interpreted as
very encouraging, because:
• THD002 has obviously intersected a very thick altered and
mineralised system
• THD003 has intersected copper sulphides near the predicted
chargeability anomaly – thus validating this geophysical technique Sipa Resources Limited 28 March 2012 3
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: [email protected]
Our challenge now is to use all the information we have generated over the last
five years at Thaduna, and in particular the last year at Enigma, to find the focus,
or foci, or higher grade mineralisation beneath, or adjacent to, the secondar