Located in the Paterson Province of WA, Sipa’s Paterson North copper-gold project is in the same strongly endowed and highly prospective mineral belt which hosts the world-class Telfer gold and copper deposits, the Nifty copper mine and the O’Callaghans tungsten deposit.
The project is in close proximity to Rio Tinto’s Winu copper-gold discovery, which has a maiden Inferred Mineral Resource of more than 500 million tonnes at 0.45% copper equivalent, and Rio’s recent discovery of a zone of gold dominant mineralisation nearby.
In August 2020, Sipa announced a farm-in and joint venture agreement with Rio Tinto Exploration (RTX), a subsidiary of global mining company Rio Tinto, in which RTX can earn a 70% interest in the project by spending $12+ million on exploration. Following which, RTX can sole fund to a JORC resource >$1B or complete an ‘Order of Magnitude Study’ to increase interest to 80%.
The JV allows Sipa to accelerate exploration activities through increased expenditure and benefit from the technical expertise of RTX and potential operational synergies with RTX’s other activities in the Paterson region, including at Winu, located 10km west of the Paterson North Project. RTX will contribute expertise and funding while Sipa will manage exploration activities in the initial stage of the farm-in.
A heritage survey has recently been completed ahead of the commencement of a large-scale gradient array IP (GAIP) survey mid 2021. Results from this GAIP will be combined combined with existing targets identified in an airborne electromagnetic (‘EM’) geophysical survey undertaken 2020 to define targets for future drilling programs.