ILGARARI COPPER PROJECT

(Sipa 100%)

The Ilgarari Copper Project is located about 150 kilometres south of Newman in Western Australia and comprises 985 square kilometres of Neoproterozoic rocks adjacent to, and northeast of, historic copper workings (held by others) of the same name. The copper oxide lodes mined historically are fault-controlled and, like Thaduna (described above) occur in rock sequences long recognised as having the potential to host major SEDEX-class Lead-Zinc deposits like Mt Isa in Queensland and fault-controlled deposits like Mt Isa Copper or Nifty Copper in Western Australia.

We consider that there is exploration potential for large SEDEX and fault-controlled basemetals sulphide deposits in Sipa's ground, as well as for repetitions of near surface fault-controlled copper oxide mineralisation. Exploration by Sipa over the past two field seasons has included an airborne magnetic/radiometric survey, geological mapping and prospecting and rock and soil geochemical sampling. Results of these surveys have identified a number of structures and areas prospective for, in particular, copper mineralisation.

Sipa recently successfully completed a Heritage Survey at Ilgarari with the Ngarlawanga Traditional Owners, clearing the way for drilling that commenced in mid May.

Approximately 20,000 metres of RAB/Aicore drilling is planned, and aims to achieve two objectives:

• Thirteen ‘angle – RAB traverses’ will target structures believed prospective for localising large copper deposits that have been identified by Sipa by geological, geochemical and geophysical surveys

• Sixteen wide-spaced (nominally 4 kilometre) holes will be drilled to bedrock to attempt to identify, geologically and geochemically, large scale alteration zones prospective for large copper and lead-zinc deposits

These exploration concepts were presented to the Western Australian Government’s Exploration Incentive Scheme last year and we were awarded a grant of $150,000 towards half the estimated direct drilling cost of $300,000. Figure 12 shows planned drill traverses and the wide-spaced holes on a magnetic image of part of the project.

Planned RAB traverses and holes on Magnetic Image