Sipa Resources (ASX:SRI) has pushed through to complete the first diamond hole at the company’s Barbwire Terrace Project in Western Australia.
Exploration is being undertaken under a 50:50 joint venture (JV) with Australian oil and gas exploration and production company Buru Energy (ASX:BRU), with Sipa as the operator.
The first hole was completed with a final depth of 410m, and the second hole is currently in progress at 330m.
Sipa reports that interpreted dolomitised Pillara Limestone was intersected at 290m below surface in the first hole (BWTDD001) and persisted to the end of the hole.
In the second hole BWTDD002/003, located some 20km to the southeast, dolomitised limestone has been intersected at 193m below surface.
The presence of dolomitised limestone is coincident with the gravity high along the south-western margin of the Fitzroy Trough, analogous to limestones and dolomites of the Lennard Shelf, lying along the northeast margin of the trough, which host significant lead zinc deposits.
More encouraging still, the company says, the dolomitised limestones lie at a considerably shallower depth than modelled from geophysics and seismic data, a significant economic advantage should a discovery be made.
The JV is currently testing one portion of its extensive tenement holding, which is highly prospective for lead-zinc mineralisation, sitting in an analogous geological setting to existing lead-zinc deposits along the Lennard Shelf on the north-eastern margin of the Fitzroy Trough.
Drilling at the project is being co-funded by the Western Australian government’s Exploration Incentive Scheme which will provide up to $180,000 support to the JV for drilling costs.
Addressing the works program, Sipa Resources Managing Director Pip Darvall said: “We have already achieved proof of concept and a significant technical success with our first drillholes intersecting the target stratigraphy at shallow depths.
“Evidence of dolomitisation, hydrothermal fluid alteration, brecciation and abundant sulphides is very encouraging”
Evidence of dolomitisation, hydrothermal fluid alteration, brecciation and abundant sulphides is very encouraging and entirely consistent with the areas proximal to significant lead-zinc deposits on the Lennard Shelf.
Drilling is continuing on the second hole and further updates will be provided in due course.”
Sipa Resources is an Australian-based exploration company focused on the discovery of gold and base metal deposits in Western Australia.
The Paterson North Copper-Gold Project is being progressed in partnership with Rio Tinto Exploration, and the Barbwire Terrace Base Metals Project in JV with energy company Buru Energy.
Images: Sipa Resources Limited
