REGISTERED OFFICE: Level 2, 87 Colin 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] Sipa Resources Limited ABN 26 009 448 980 7 April 2004 The Manager ASX Company Announcements Platform PO Box H224 Australia Square SYDNEY NSW 2001
Dear Sir Re: Sipa announces significant results from Stephens-Centennial drilling program Sipa Resources (ASX: SRI) today announced significant results from its recent Reverse Circulation (RC) drill program at its Stephens-Centennial Project near Broken Hill. Managing Director Mike Doepel said the results – from the Stephens Trig zinc-lead Prospect within the Project – were very encouraging in the context of past exploration in the district away from the famous ‘Line of Lode’. Sipa has the right to earn up to a 70% interest in Stephens-Centennial from partners PlatSearch NL, Eaglehawk Geological Consulting Pty Ltd and Triako Resources Limited. The Stephens Trig Prospect is about 15 kilometres north of the Broken Hill ‘Line of Lode’, one of the world’s greatest zinc-lead-silver deposits (Figure 1). Sipa’s drilling targeted potentially open-pitable mineralisation centred on a 1991 RC drill intersection of: 6 metres of 11.8% Zn and 3.8% Pb and 13 g/t Ag from 112 metres downhole. Five of Sipa’s seven holes intersected significant mineralisation (Figure 2), with the best result being: 6 metres of 9.5% Zn, 0.7% Pb & 14 g/t Ag from 51 metres downhole. Three RC holes were also drilled at the Corruga South and Limestone Tip prospects (Figure 1; neither previously RC drilled), 15 kilometres southwest of Stephens Trig. Hole CSC2 at Corruga South intersected: 2 metres of 6.5% Zn, 0.2% Pb and 17 g/t Ag from 72 metres downhole. Intersections of greater than 1% zinc (analysed after digestion by aqua regia) are tabled below: Hole From (m) To (m) Interval Zn% Pb% Ag ppm Cu% SGC1 51 57 6 9.53 0.71 14 0.04 43 47 4 1.91 0.17 4 0.16 SGC2 54 57 3 5.86 1.38 16 0.03 134 137 3 8.48 1.69 53 0.14 SGC4 196 198EOH 2 2.36 0.84 7 0.01 SGC5 66 67 1 1.55 0.05 5 0.18 SGC6 48 50 2 5.87 0.01 2 0.09 CSC2 72 74 2 6.46 0.24 17 0.24 REGISTERED OFFICE: Level 2, 87 Colin 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] These drill results need to be put in the context of previous results from RC and diamond drilling at the Stephens Trig Prospect. Aberfoyle and Pasminco completed 15 holes for about 6,000 metres in the 1990s, drilled over about 1 kilometre of strike (Figure 2). The results of this drilling included (lower cut of 1% Zn, minimum 1 metre width): Hole From (m) To (m) Interval Zn% Pb% Ag g/t Cu% SG001 66 68 2 12.00 4.27 62 0.05 110 122 12 6.75 2.28 10 0.02 SG003 Incl. 112 118 6 11.8 3.8 13 0.04 SG005 76 80 4 5.31 0.32 13 0.07 SG006 56 58 2 2.30 2.71 20 0.04 SG010 374.5 375.8 1.3 6.62 0.06 9 0.13 SG012 126 142 16 1.29 0.30 2 0.02 SG016 335 336 1 9.00 5.08 43 0.05 342 346 4 1.10 0.33 8 0.08 SG017 390 392 2 1.54 2.38 117 0.08 There is no outcrop within one kilometre north and south of the recent drilling, though 1980s RAB drilling through thin sand cover, along with the RC and diamond drill holes tabled above, show continuity of the lode system over at least two kilometres of strike and down dip to at least 300 metres depth. The lode dips steeply to the northwest (local grid west). The historical results are regarded as amongst the most significant zinc-rich mineralization in the district away from the Broken Hill Line of Lode. The recent drilling results confirm and extend the significance of Stephens Trig. Sipa’s challenge is to determine whether structural complexity between the sparsely RC-drilled, 100 metre-spaced sections could result in the definition of a resource amenable to open pit mining, such as was successfully mined at the Potosi deposit two kilometres north east of Broken Hill in the late 1990s. Sipa will complete infill RAB drilling in the June Quarter of 2004 to better define the footprint of the mineralisation immediately beneath the shallow sand cover (typically less than 6 metres thick), before planning further RC drilling at Stephens Trig. About Sipa Resources Sipa Resources (ASX: SRI) is a leading Australian minerals explorer, having found two major new mineral provinces in Western Australia in the past 12 years – the Panorama VMS Zinc-Copper Province and the Ashburton Gold Province. Sipa’s strategy is to focus on discovery of gold, nickel sulphide, platinum group metals and base metals in Australia. The company has strong cash reserves, no debt and world class project generation capacity. Further information: Mike Doepel Managing Director Tel: 08 9481 6259 E E E F 5555 10 km 10 km MGA ZONE 54 - GDA 94 MGA ZONE 54 - GDA 94 0000 Potosi Mine Potosi Mine Stephens Trig Stephens Trig EL6132 EL6132 Corruga South Corruga South BROKEN BROKEN HILL HILL Limestone Tip Limestone Tip L i n e o f L o d e L i n e o f L o d e 560000 mE 6490000 mN 6480000 mN 6470000 mN 560000 mE 550000 mE 550000 mE 6460000 mN 540000 mE 6460000 mN 540000 mE 6490000 mN 6480000 mN 6470000 mN STEPHENS - CENTENNIAL PROJECT Location and Prospects Drilled Figure 1 SIPA RESOURCES LIMITED APRIL 2004 - ASX RELEASE Joint VentureTenement E Prospect drilled Broken Hill "Line Of Lode" SG014 SG014 SG009 SG009 0.25 0.5 km Local Grid (Grid North = 032º GDA) SGC2 SGC2 SG005 SG005 0 SG012 SG012 SG001 SG001 SG002 SG002 SG003 SG003 SG016 SG016 SG015 SG015 SG007 SG007 SGC1 SGC1 SG006 SG006 SG013 SG013 SG017 SG017 SG004 SG004 SGC3 SGC3 SGC4 SGC4 SG010 SG010 SG008 SG008 SG011 SG011 SGC5 SGC5 SGC6 SGC6 SGC7 SGC7 23500 mN 11000 mE 10500 mE 24000 mN 23000 mN 10000 mE 24000 mN 10000 mE 23500 mN Company Hole_No Intersection Sipa SGC1 6m @ 9.5% Zn, 0.7% Pb, 14g/t Ag from 51m Sipa SGC2 3m @ 5.9% Zn, 1.4% Pb, 16g/t Ag from 54m Sipa SGC4 3m @ 8.5% Zn, 1.7% Pb, 53g/t Ag from 134m Sipa SGC6 2m @ 5.9% Zn, 2g/t Ag from 48m Previous Explorer SG001 2m @ 12.0% Zn, 4.3% Pb, 62g/t Ag from 66m Previous Explorer SG003 6m @ 11.8% Zn, 3.8% Pb, 13g/t Ag from 112m Previous Explorer SG005 4m @ 5.3% Zn, 0.3% Pb, 13g/t Ag from 76m STEPHENS - CENTENNIAL PROJECT Stephens Trig Prospect Drill Hole Locations Figure 2 SIPA RESOURCES LIMITED APRIL 2004 - ASX RELEASE RC/DD holes (previous explorers) RC holes (Sipa) Lode projected up-dip to surface ) (
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