THADUNA COPPER PROJECT

(Sipa 100%)

The Thaduna Copper Project is located about 250 kilometres south of Newman in Western Australia and covers approximately 940 square kilometres of Paleoproterozoic sedimentary rocks in the Gascoyne Region of Western Australia.

These rock sequences have long been recognised as having the potential to host major SEDEX-class Lead-Zinc deposits like Mt Isa in Queensland and, more recently, fault-controlled deposits like Mt Isa Copper or Nifty Copper in Western Australia. Sipa has conducted regional-scale and prospect-scale exploration at Thaduna over the last three field seasons with success - including detecting numerous geochemical anomalies that require follow-up drilling, along with potentially ore-grade, and oreÐwidth, drill intersections from the old Rooney and Ricci Lee copper mines.

Interest in the district has recently been heightened by Sandfire Resources NL's DeGrussa - Conductor 1 high grade copper-gold discovery, first announced in May 2009, about 20 kilometres west of Sipa's western tenement boundary. DeGrussa - Conductor 1 is located within the Jenkin-Goodin Fault Complex, and appears to be at least sub-parallel, south dipping, sheets of massive copper-bearing sulphides beneath an oxidised gold-bearing cap. Sandfire have recently reported (ASX Release 19 August 2009) some spectacular high grade copper-gold drill intersections from two zones of mineralisation in the one hole totalling 53 metres (DeGrusa Zone) and 25 metres (Conductor 1 Zone) respectively:

DeGrussa
21.3m @ 16.3% Cu & 1.3 g/t Au from 146m
31.9m @ 17.9% Cu & 3.5 g/t Au from 176m

Conductor 1
1 5.5m @ 4.2%Cu & 2.2 g/t Au from 319m
19.6m @ 3.6% Cu & 1.6 g/t Au from 337m

Sipa recently announced (27 April ASX Announcement) that the first thirteen high quality targets from the recently completed airborne electromagnetic (VTEM) survey over the central part of our Thaduna Copper Project have been selected for drilling.

Four of the targets chosen for this initial test are closely associated with the Jenkin Fault, a structure that we believe may be critical in localising Sandfire Resources NL’s high grade DeGrussa-Conductor 1 copper – gold deposits, located about 25 kilometres west of Sipa’s western tenement boundary.

Nine targets are located in the southeastern part of the survey, within structural domains considered prospective for major copper deposits, and two deep holes are planned beneath the old Rooney and Ricci Lee copper mines, where earlier Sipa drilling returned results like 14 metres @ 3.8% Cu and 43 metres @ 0.7 % Cu (including 7 metres @ 2.4% Cu) respectively.

A Heritage Survey with the Yugunga Traditional Owners was recently successfully completed two weeks ago and the area has been cleared for first-pass RC drilling and for continuing programmes of RAB drilling.

RC drilling commenced in late May.

The thirteen targets selected are based on their geophysical responses and have been prioritised based on our existing geological and geochemical knowledge.

The Channel 45 VTEM image below, shows the location of the thirteen targets.  The two cross sections, show examples of the geophysical responses of a selected moderately dipping conductor and of three close spaced near-horizontal conductors along with the traces of our planned drill holes for those two targets.

Sipa has been exploring at Thaduna for several years based on an ‘exploration model’ for ‘fault-controlled’ copper deposits, of which the Mt Isa copper deposit in Queensland, and the large Nifty copper deposit in northwest Western Australia are examples. The old Thaduna and Green Dragon copper mines, which are excised from our tenements, and the old Rooney and Ricci Lee copper mines, which are in our ground have long been considered by Sipa as ‘smoke’, possibly indicating the presence of large copper sulphide deposits in the district.

VTEM Channel 45 Image, Copper Deposits and Initial Target Selection

Cross-section of VTEM Response, Modelled Near Horizontal Targets and Planned Drillholes

Cross-section of VTEM Response, Modelled Moderately Dipping Target and Planned Drillhole

Main Tenement Holders in the Doolgunna District