WOODLINE GOLD & BASEMETALS PROJECT

Sipa 100%

Sipa has recently regained 100% of the Sipa tenements at Woodline in May 2009 in which Newmont Exploration Pty Ltd (Newmont) had earned a 70% interest.

Woodline, which is centred approximately 150 kilometres southeast of Kalgoorlie in Western Australia, comprises some 1,600 square kilometres of exploration tenements. Sipa holds 1,000 square kilometres 100% and Sipa, as manager, may earn a 70% interest in 450 square kilometres held by Comet Resources Limited and a 60% interest in 180 square kilometres held by Image Resources N.L, following Newmont's withdrawal from those Farm-in Agreements in late 2008.

The Woodline Project covers two rock sequences, both of which are prospective for large gold deposits. These are Archaean greenstones in the central and northern part of the Project and, in the southeast of the Project, the Transition Zone between the greenstones and the Proterozoic Albany-Fraser Province which hosts the Tropicana Gold Deposits - with now a 5 million ounce resource - that Anglo Gold Ashanti/Independence Group are conducting a Bankable Feasibility study on (Independence Group NL's June Quarter 2009 ASX Report) and the Beachcomber gold discovery, about 300 kilometres and 70 kilometres respectively, to the northeast.

Newmont spent approximately $6 million at Woodline in 2007 and 2008, and whilst large geochemical (mostly from calcrete auger sampling) and geophysical (airborne magnetics/radiometrics and electromagnetic and ground gravity and IP) data sets were collected, no diamond drilling, and only limited RC drilling, was conducted.

On 19 March this year we announced results to the ASX from some 850 in-fill calcrete samples at its Heraclitus and Theofrastos Prospects, following from an 18 February ASX Announcement of very encouraging RC drilling results from the Heraclitus and Socrates Prospects.

Woodline, which is about 150 kilometres southeast of Kalgoorlie in Western Australia’s Eastern Goldfields. Heraclitus and Theofrastos are in part of the emerging Tropicana Gold Province, whilst Socrates is within traditional Eastern Goldfields greenstones.

The results show that the Heraclitus and Theofrastos anomalies contain at least 15 kilometres of northeasterly striking mineralised trends above 20 ppb gold, which peak at 266 ppb, as shown on the Gold-in-Calcrete Figure below. In addition, there is supporting multi-element geochemistry with the gold, including bismuth, tellurium and molybdenum.

In February, the southern tip of an eight kilometre long by two kilometre wide gold-in-calcrete anomaly at Heraclitus was RC drilled, with all seven holes intersecting significant mineralisation of up to 9g/t gold within a lode which is up to 35 metres thick. 

The adjacent six kilometre by two kilometre Theofrastos anomaly to the west is more coherent and stronger in tenor than Heraclitus, however it has not yet been RC drilled.  Both Heraclitus and Theofrastos also have many, very widely spaced, RAB drill holes with anomalous gold (see Gold-in-Calcrete Figure below).

It is still early days, but to put Heraclitus and Theofrastos in perspective, the five million ounce Tropicana gold resource and the new Boston Shaker discovery (only 500 metres northeast  of Tropicana announced on the 17 March by Independence Group NL), lie within a three kilometre portion of larger northeasterly mineralised trend, in a similar geological setting to Woodline.  In comparison, Heraclitus and Theofrastos sit on similar northeasterly trends, and with some 15 kilometres of strike, are well capable of encapsulating multiple finds like Tropicana and Boston Shaker.

Sipa has been working for a number of years at Woodline Project and are now refining our search areas into discrete mineralised zones that we intend targetting with focussed drilling. There are a number of other gold-in-calcrete anomalies that we have reported on in the past, like Omaney and Cleanthes, that will also attract additional calcrete sampling, in order to plan more-focussed drilling

The Socrates Prospect is within Archaean Greenstones where a 2008 Newmont RAB hole intersected 22 metres grading 3 g/t gold. Recent Sipa drilling obtained two moderate grade intersections of 18 metres at 3.5 g/t gold and 7 metres at 1.8 g/t gold. These intersections are within a ‘chargeability’ Induced Polarisation geophysical anomaly traceable for at least 400 metres beneath a 400 metre long coincident gold-bismuth-tellurium soil anomaly and there has only been shallow RAB drilling 200 metres north and 200 metres south of the intersection. Recent interpretation by Sipa concludes that the ‘controlling structures’ on the mineralisation are northeast-southwest trending and drilling is now planned at a northwest-southeast orientation

Sipa’s Woodline Project, which is some 150 kilometres long from north to south, has only very limited outcrop and hence historic prospectors appear to have neglected the area, though Sipa rock sampling has found gold values of up to 13 g/t.

Since 2005 Sipa and Newmont have taken some 15,000 calcrete soil samples by shallow auger drilling and have conducted geological mapping, prospecting and rock sampling where possible. Newmont also flew extensive magnetic/radiometric surveys, conducted an extensive ground gravity survey and did more detailed Induced Polarisation and helicopter-borne Electromagnetic surveys in the Socrates Prospect area. They also did some 16,000 metres of reconnaissance-spaced, RAB drilling, but only drilled six Reverse Circulation, and no diamond, drillholes.

Sipa has now inherited very large and very useful databases, which cost in the order of $7 million dollars to collect, and which have identified many geochemical, geophysical and geological targets ready for drill testing.

Sipa's Woodline Project on Regional Magnetic Image

Gold-in-Calcrete Image showing RAB drillholes (red with >10ppg Au, blue <10ppg Au),
RC holes at Southern Tip of Heraclitus in magenta

Heraclitus Cross Section

Socrates Gold-in-Calcrete Image with RAB drillholes (anomalous holes in pink)

Socrates Cross Section