TENNANT CREEK GOLD AND COPPER PROJECTS

(Sipa may earn 70% from the Hosking-Allender-LeBrun Syndicate in West Warrego and 70% from Meteoric Resources NL in the Meteoric JV)

The West Warrego Gold Project in the Northern Territory is an exploration concept to test a number of bullseye - shaped magnetic anomalies beneath sand cover about 20 kilometres to the west of the old Warrego gold-copper-bismuth mine within the Tennant Creek Goldfield.

Sipa may earn a 70% interest by exploration expenditure of $500,000 in five Exploration Licences and two Applications totalling 375 square kilometres, held by the Hosking-Allender-LeBrun Syndicate, and in ELs and EL applications held by Meteoric Resources, centred about 70 kilometres northwest of Tennant Creek in the Northern Territory.

West Warrego Project and Major Gold Deposits on Google Earth image

Sipa is targeting gold deposits analogous to those in the Tennant Creek Goldfield, like Warrego, which was the largest mine in the Goldfield, some 20 kilometres to the east of the Project on the eastern side of the Warrego Granite. The granite is an oval-shaped intrusive body, younger than the Warramunga Formation sedimentary rocks that host the gold deposits, and is also younger than the age of mineralisation in the Goldfield.

Warrego produced some 1.3 million ounces of gold, 91,500 tonnes of copper and 12,000 tonnes of bismuth from 4.85 million tonnes of ore grading 8 g/t Au, 2% Cu and 0.3% Bi from 1973 to 1989. Since 1932 the Tennant Creek Goldfield has produced some 5 million ounces of gold, 345,000 tonnes of copper and 14,000 tonnes of bismuth. Most of the gold production came from the 12 largest mines, with Warrego, Nobles Nob and Juno contributing some 3 million ounces.

There has been no ground-based exploration in our target area since the early 1970’s because of an exploration moratorium and, very importantly, the airborne magnetic survey that disclosed the bullseye anomalies was only flown in 1998 during the moratorium.

Following a 2007 Agreement between Sipa and the Karlantijpa Traditional Owners and the Central Land Council and a successful Sacred Site Survey in March 2009, detailed ground magnetic and gravity geophysical surveys were completed in May. The gravity survey successfully identified gravity ridges, or corridors, interpreted to reflect alteration zones. The magnetic survey successfully outlined bullseye anomalies within, or associated with, those alteration zones. Historically, the most important of the high grade gold, copper and bismuth mines at Tennant Creek were associated with bodies of ironstone dominated by the magnetic mineral magnetite and were represented geophysically by bullseye magnetic anomalies.

Drilling in late 2009 and 2010 by Sipa tested six bullseye magnetic anomalies within the West Warrego Project and geochemical and geological results from these three suggest that they may contain significant mineralisation.

Sipa secured funding of $40,000 from the Northern Territory Government’s Drilling Collaboration Initiative for half the direct drilling cost (of some $80,000) for the first holes into the three anomalies chosen for drill testing in late 2009.

The Tennant Creek Region has recently acquired a much higher exploration profile, partly as a result of some spectacular drill intersections by Westgold Resources Limited at their Rover 1 deposit southwest of Tennant creek, like:

• 128 metres @1.2 g/t Au & 1.2% Cu from 402 metres, followed by 7 metres @ 185 g/t Au from 542 metres and 16 metres @ 9.7 g/t Au from 573 metres (Westgold ASX Release 10 September 2009).

In addition, Emmerson Resources Limited have recently released to the ASX details of a $28 million funding arrangement with Robert Friedland’s Ivanhoe Australia Limited (26 August 2009) and drill results (June Quarter Report, 31 July 2009) including:

• 24 metres @ 6.3 g/t Au, including 3 metres @ 48.3 g/t from 264 metres.