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Thursday 10th November, 2016

Sulphide Nickel-Copper Hits in Uganda – Portfolio Stock (coverage initiated @ $0.025 in July 2016)

Sipa Resources (ASX: SRI, Share Price: $0.016, Market Cap: $15m) is a relatively new Portfolio stock

in terms of coverage. The company has been a mainstay of the Australian resources scene, listed for nigh

on 30 years on the ASX and with a celebrated history of exploration and production success. The stock

has attracted attention because of high-impact exploration activity in both Western Australia and Uganda.

Sipa recently completed drilling at its Akelikongo nickel-copper prospect in Uganda, which has

successfully extended the previously identified zone of massive sulphides down-plunge, expanding the

footprint of the discovery and confirming the presence of a large mineralised system.

Market Significance

Sipa Resources is currently engaged in high-impact exploration activity on dual fronts. Firstly, it recently

undertook maiden exploration drilling at its Obelisk prospect in Western Australia, which represents an

extensive primary copper-gold anomaly situated immediately north of fellow Portfolio stock, Antipa

Minerals’ (ASX: AZY) Magnum and Citadel copper-gold projects. Simultaneously, the company has also

undertaken exploration drilling on its Kitgum Pader base metal project in Uganda, expanding the footprint

of the discovery and confirming the presence of a large mineralised system.

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Announcement Detail – Uganda Project Exploration Update

Sipa Resources has advised that it has recently completed drilling at its Akelikongo nickel-copper

prospect, which forms part of its 100%-owned Kitgum Pader base metal project in northern Uganda.

The Kitgum-Pader project contains two new mineral discoveries that were made by Sipa during 2014 and

2015. The intrusive-hosted nickel-copper sulphide mineralisation at Akelikongo was one of the most

significant nickel sulphide discoveries globally for 2015.

The current 16-hole program commenced in late September and consisted of nine RC holes, six RC holes

with diamond tails and one diamond hole drilled from surface - for a total of 776 metres of RC and 1,102

metres of diamond drilling. 12 holes were drilled to test the Akelikongo Ultramafic Complex, with the

remaining four holes testing additional targets within the immediate Akelikongo area.

The objectives of the program were to further delineate previously identified zones of massive and

disseminated sulphides intersected earlier in 2016, as well as to extend the massive sulphide zone

located at the basal position of the Akelikongo Ultramafic Complex down-plunge.

A 6-metre wide matrix to semi-massive sulphide (30-50% sulphides) intersection from 213 metres to 219

metres down-hole, with an additional 1-metre of matrix mineralisation below a barren granitic dyke was

observed in hole AKD017. Coarse-grained pentlandite and chalcopyrite were observed in this interval in

addition to pyrrhotite (the dominant sulphide).

Figure 1: Mineralised NQ core from AKD017 - part of interval 213m to 219m showing matrix sulphides

An additional nine holes returned zones of variable width ranging from 0.6-metre to 9 metres of matrix to

semi-massive sulphides. In the hanging wall of these high-grade zones, wide zones of lower-grade

disseminated sulphide mineralisation of up to 150 metres (drilled width) were encountered. The

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mineralisation is cut by steeply-dipping to vertical post-mineral pegmatite and granite dykes, ranging from

10cm to up to 30 metres wide.

Technical Significance

Although the assays have yet to be returned, the visual observations made from the core suggest strong

continuity of the system down-plunge, validating Sipa’s exploration targeting method of following the

higher-grade massive zone by drilling down-plunge and along the embayment, as identified during the

course of the previous drilling program.

Based on visual inspection of the drill-core, Sipa believes the drilling has achieved its objective,

successfully extending the basal high-grade matrix to semi-massive sulphide position for a further 100

metres down-plunge, with a number of sulphide intersections. It has therefore successfully extended the

previously identified zone of massive sulphides down-plunge, expanding the footprint of the discovery and

confirming the presence of a large mineralised system.

In summary, Sipa has delineated an intrusive-hosted chonolith nickel-copper sulphide system at

Akelikongo, which is outcropping and plunges shallowly to the north-west for a distance of at least 500

metres and open to the northwest.

Figure 2: Location of tenements Northern Uganda

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Next Steps

Samples are currently en route to the assay laboratory in Perth, with results expected during late

November.

A program of down-hole EM surveys will be undertaken to test the holes from this program, as well as

from the April 2016 and the September 2015 programs. This work is planned to commence early in the

New Year and will further evaluate the potential for extensions to the system by identifying potential off-

hole conductors.

Obelisk Project Update

Sipa Resources recently commenced its maiden drilling program on its recently-acquired Great Sandy

Copper-Gold Project in Western Australia’s Paterson Province. The company recently completed a Farm-

in and Joint Venture agreement with private group, Ming Gold Pty Ltd, under which Sipa can earn up to an

80% stake in the project (E45/3599) by way of expenditure of $3 million within a four-year period.

Figure 3: Sipa's Paterson North copper-gold projects

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The maiden drilling program is focused on investigating previous copper intersections from wide-spaced

reconnaissance drilling conducted by Ming during late 2015, which returned mineralised intercepts

comprising up to 0.32% Cu, 30ppb Au and 25ppm Bi within an anomaly measuring 4km in length. Visible

primary chalcopyrite was identified in a number of these holes.

The program involves up to 10,000 metres of air-core/RC drilling designed to test a newly-discovered

extensive primary copper-gold-bismuth anomaly known as Obelisk, that’s in excess of 4km strike length

and located immediately to the north of the Magnum and Citadel Copper-Gold Projects, owned by Antipa.

Sipa recently provided an exploration update that indicates that the initial drilling work undertaken so far

has outlined what appears to be an extensive copper-gold mineral system. To date, more than 1km of

strike has been tested, with assays received for the first 19 wide-spaced reconnaissance air-core holes

(out of a total of 36 holes completed to date), with 15 of the holes returning copper values >250ppm Cu

and gold values >20ppb Au.

The most significant mineralised intercepts include:

o 4m at 0.42g/t Au from 85 metres in PNA007

o 8m at 0.28g/t Au, 0.44g/t Ag, 0.11% Cu, 36ppm Mo and 141ppm Tungsten (W) from 86 metres

(including 1 metre at 1.26g/t Au from 89 metres in PNA007

Figure 4: Plan view of anomalous geochemistry in drill-holes completed to date

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Technical Significance

As shown in the graphic above, the strongest gold and copper results also generally correlate with

strongly anomalous silver, molybdenum and tungsten. The metal association is similar mineralisation

intersected elsewhere in the district and indicates a strong relationship to intrusive granites in the area.

The mineralisation is hosted within a metamorphosed and hydrothermally-altered gabbro, associated with

a strong gravity feature immediately to the south of an interpreted non-magnetic granite intrusion. The

mineralisation is also associated with magnetite alteration.

Whilst it is too early to draw any definitive conclusions, the results received so far have significantly

exceeded the company’s expectations at this early stage of exploration. It highlights the potential for the

Paterson North tenements to host a significant ‘greenfields’ mineral discovery.

The tenor of the anomalism and the metal association is similar to that which led to the discovery of other

significant deposits in the region including the >1Moz Calibre and Magnum deposits. Obelisk lies

immediately north of Antipa’s Magnum and Citadel copper-gold projects and the host geology is

interpreted to be similar to these projects. Furthermore, Obelisk lies just 5km from some of the strong IP

chargeability anomalies announced recently by Antipa under its $60 million exploration joint venture with

Rio Tinto.

The margins of non-magnetic granites present key targeting criteria for locating many of the gold and

copper systems within the Paterson province. The combined use of gravity and magnetics assists with the

identification of such granites and also explains the location of the Telfer deposits and the O’Callaghan’s

skarn system.

The Paterson Province is a globally recognized, strongly endowed and highly prospective mineral belt for

gold and copper - including the world-class Telfer deposits, Antipa’s Magnum and Citadel gold and copper

deposits, the Nifty copper and Kintyre uranium deposits, along with the O’Callaghans skarn-hosted

tungsten deposit.

Summary

We initiated coverage of Sipa Resources at a price around $0.025 during July 2016.

Sipa has delineated an intrusive-hosted chonolith nickel-copper sulphide system at Akelikongo in

Uganda, which is outcropping and plunges shallowly to the north-west for a distance of at least

500 metres and open to the northwest. The initial drilling results from the company’s Paterson

North exploration activity are very good also, exceeding expectations and returning very

significant copper and gold values, with associated tungsten, molybdenum and silver over a

considerable strike length. We look forward to more drilling results on both fronts. Accordingly,

Sipa Resources will remain firmly held within our Portfolio.

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Disclaimer: Gavin Wendt, who is a director of Mine Life Pty Ltd ACN 140 028 799, compiled this document. It does not constitute investment 

advice. In preparing this report, no account was taken of the investment objectives, financial situation and particular needs of any particular 

person. Before making an investment decision on the basis of this report, investors and prospective investors need to consider, with or 

without the assistance of a securities adviser, whether the information is appropriate in light of the particular investment needs, objectives 

and financial circumstances of the investor or the prospective investor. Although the information contained in this publication has been 

obtained from sources considered and believed to be both reliable and accurate, no responsibility is accepted for any opinion expressed or 

for any error or omission in that information.