Sipa Resources Limited provided an update on exploration activities at the Paterson North Project, which is the subject of a Farm-in and Joint Venture Agreement (Agreement) with Rio Tinto Exploration (RTX), with Sipa as the operator. Reverse Circulation (RC) drilling at Paterson North commenced in late June and was completed in mid-August. The RC drilling tested selected target areas, by sampling the prospective Proterozoic basement rocks after penetrating through more recent sedimentary cover.

Assays have been received from the first batch of samples submitted from four holes drilled in the northern part of the project area, testing a prominent magnetic feature. A further 18 holes were drilled in other parts of the project and assay results from these holes are pending. In the initial batch of assays, a peak result of 517ppm Cu was returned in PNRC0003 from 125-126m depth.

A further review of the results, including geochemical pathfinders, will be undertaken after all results from the drilling have been received. With this round of drilling completed and the remaining samples currently being assayed, further works have already been completed on site to support future drilling. A GAIP survey has just been completed in the southern part of the tenement package, extending the area covered in previous surveys.

The data from this work will be added to the existing geophysical dataset to support future drill targeting efforts. Further GAIP surveys are also planned for the northern part of the project area and will commence in late October 2022. RTX Agreement: Under the Terms of the Agreement, RTX can earn a 70% interest in the project by sole funding expenditure of $12 million (being $6 million to earn 55% and a further $6 million to earn to 70%) and increase its interest to 80% by sole funding to the earlier of a JORC resource of AUD 1 billion in-ground value or the completion of an `Order of Magnitude Study'.

Sipa is the current manager of the Paterson North Project.