Outstanding Results from Integration of Kitgum-Pader ... · The recognition of rocks ... was previously Senior Exploration Geochemist for Western Mining Corporation ... in Vancouver

REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 • POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TELEPHONE: (08) 9481 6259 • FAX: (08) 9322 3047 • E-MAIL: [email protected]

Sipa Resources Limited ABN 26 009 448 980

24 February 2014

Outstanding Results from Integration of Kitgum-Pader Exploration

Sipa Resources Limited (ASX code: SRI) is very pleased to announce outstanding results from Geological-Geochemical-Geophysical integration of the Kitgum-Pader Base & Precious Metals Project in central northern Uganda, East Africa .

The results offer compelling optimism for the discovery of major Lead-Zinc-Silver, Nickel-Copper-PGE, and possibly Gold, deposits in the extensive tenement holding.

Summary

Sipa Exploration Uganda Limited (SEUL), which is owned 80% by Sipa and 20% by Geocrust Pty Ltd, commenced systematic field exploration at Kitgum-Pader in early 2013. Since that time SEUL has taken more than 30,000 geochemical soil samples leading to the discovery of 12 sulphide-derived base and precious metal prospects. Only about 35% of SEUL’s 6,358 square kilometre tenure (Figure 1) has yet been sampled.

The ability to collect such a large number of samples in such a short time is testament to availability of skilled Ugandan labour, the effectiveness of being able to undertake commercial activities and the cooperation of all levels of government.

Key outcomes from the 2013 exploration programme are:

The recognition of rocks strikingly similar to the host ‘Mine Series‘ sequence at the giant Broken Hill Lead-Zinc-Silver Deposit in NSW, Australia led to the discovery of:

• the Pamwa and Ayuu Alali Prospects, which are two standout Broken-Hill-Type (BHT) soil geochemical anomalies, within 75 kilometres of ‘Fertile BHT Geochemical Corridors’. The anomalies are interpreted as being derived from base metal sulphides.

Discovery of two standout Nickel-Copper-PGE prospects, both interpreted as derived from nickel-copper sulphides, each in different geological settings:

• Akelikongo is interpreted as a ‘chonolith’, within an intrusive mafic-ultramafic complex. There are only 61 chonoliths known world-wide – 58 are mineralised and 29 are, or have been, mines. Examples include the giant Norilsk camp in Russia, Jinchuan in China, and Voiseys Bay in Canada. Existing data are suggestive of the presence of additional bodies of this type within SEUL tenure.

• Walago is within reworked Archaean or PaleoProterozoic, supracrustal rocks with striking similarities to the giant Thompson Belt environment of Canada.

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Sipa Resources Limited 24 February 2014 2


• In addition to Akelikongo and Wilago, there are another 9 fertile mafic-ultramafic targets.

Discovery of Abwoc-bell, a 2.5 kilometre long gold-arsenic-bismuth anomaly, that may have typical characteristics of some high grade metamorphic terrane-hosted deposits, like Tropicana in Western Australia.

Project Background The Kitgum-Pader Project arose from two East African reconnaissance trips by Dr Nick Archibald and Mike Doepel in 2010 and 2011. During 2011 new airborne magnetic/radiometric data sets were obtained for all of Uganda, Rwanda and Western Kenya. These were levelled and stitched to an older Tanzanian data set by Steve Massey, Principal Geophysicist of Spinifex Geophysics, and a comprehensive geological/geophysical interpretation was undertaken.

Figure 1 – Project Location & Tenure

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This report relies strongly on the input of four internationally renowned exploration geoscientists:

• Dr Nick Archibald is recognised for continental to mine scale metallogenic understandings and has extensive global experience in base and precious metal exploration. Importantly, Nick completed a two year postdoctoral study at Broken Hill and later consulted to Pasminco on Broken Hill (Nick is co-owner of Geocrust Pty Ltd, which has a 20% interest in SEUL).

• Dr Jon Hronsky, principal of Western Mining Services Pty Ltd, Perth, Western Australia. Jon previously headed Western Mining Corporation’s and BHP Billiton’s global nickel-copper-PGE search.

• Dr Nigel Brand, principal of Geochemical Services Pty Ltd, Perth, WA. Nigel was previously Senior Exploration Geochemist for Western Mining Corporation and for Anglo American Corporation and has extensive global exploration experience.

• Mr Steve Massey, principal of Spinifex Geophysics Pty Ltd, Perth, WA. Steve was previously Exploration Manager of Placer Dome, Western Australia and also has considerable East African exploration experience.

This extended knowledge base is fundamentally important and consistent with the history of Sipa. For over 25 years the Company has enjoyed the collective expertise of some of the industry’s finest professionals. During that time, Sipa has been a dedicated and successful greenfields explorer. In the early 1990’s Sipa discovered the Sulphur Springs and Kangaroo Caves Zn-Cu VHMS deposits at Panorama in the Pilbara Region of Western Australia. In the mid 1990’s Sipa discovered the Mount Olympus, and three satellite gold deposits in the Ashburton Region of W.A. and produced profitable gold through to the early 2000’s. The Ugandan project is entirely compatible with Sipa’s history of greenfields discovery, this time as essentially as a ‘first mover’ in a virtually unexplored terrane. 2013 Field Activities Having effectively established a corporate entity in 2012, SEUL set about recruiting consultants, administrative, geological and support staff. A field base was established in Kitgum town, near the centre of the project and Sipa’s Senior Field Manager in Australia, Bill Willmott, was seconded to SEUL, appointed as a Director of SEUL, and took up residence in Kitgum. Fieldwork commenced in early 2013 with consultations with various levels of Government and Community Sensitisation meetings to gain ground access and local community support. Three teams of geochemical samplers started in February, and by December had taken 30,020 reconnaissance-scale (1 kilometre by 100 metres) and 11,734 infill (200 metres by 50 metres) at 12 separate anomalies detected by the reconnaissance

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sampling, thus covering about 2,200 square kilometres, or about 35% of what is now SEUL’s 6,358 square kilometres of tenure. The geochemical survey was designed and supervised by Dr Nigel Brand. All samples were analysed at the Kitgum base by portable XRF (pXRF), and applying Nigel’s statistical analysis, 1 in 8 samples were shipped to the accredited ACME Laboratories in Vancouver for wet chemical analysis for QA/QC purposes and to test for elements like gold, silver, cadmium and platinum group metals that cannot be accurately determined by pXRF. During this period, Dr Nick Archibald undertook some 12 weeks of detailed and regional scale geological mapping and anomaly checking. Steve Massey provided geophysical interpretation assistance. Tectono-Metallogenic Setting of Kitgum-Pader SEUL contracted Dr Jon Hronsky to provide opinions, and report on the tectono-metallogenic setting of Kitgum-Pader within the African continent context, and in particular provide a detailed assessment of the nickel-copper-PGE prospectivity of the project. Jon recognised that: “The Kitgum Region is interpreted as forming the rifted continental margin of the Congo Craton during a major PaleoProterozoic event that culminated in the NeoProterozoic with the overthrusting of the West Karamoja Group metasedimentary rocks as an acretionary orogen” and that: “This is a geodynamic environment closely analogous to that of the well mineralised PaleoProterozoic Thompson and Raglan Nickel Belts that formed on the margin of the Superior Craton in Canada” Figure 2 shows the Cratonic Geological setting.

Figure 2 – Cratonic Geological Setting of Kitgum-Pader (after Hronsky 2014)

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Using recent Nick Archibald and GTK (a consortium of geological organisations from Germany, South Africa and Uganda, led by the Geological Survey of Finland) geological mapping, SEUL’s pXRF regional geochemical data and airborne magnetics and radiometrics, Jon Hronsky established a Lithological-Structural Sequence across the northern part of the Kitgum-Pader Project (see Figure 3).

Figure 3 – Kitgum-Pader Interpretative Geological Map

Establishing this Lithological-Structural Sequence is very important, because it allows for the various geochemical anomalies to be integrated into a coherent geological framework. Viz, the:

• Pamwa and Ayuu Alali basemetal BHT anomalies are on the upper contact of the Kitgum Gneiss and in the overlying West Karamoja Group respectively.

• Walago and 9 other Ni-Cu-PGE anomalies, as well as the Akelikongo and two

other Ni-Cu-PGE anomalies, are within the Burukung Ultramafic Formation and the Waal Gabbroid Suite respectively.

• The Abwoc-beel Au-As-Bi anomaly is within the Kitgum Gneiss.

Broken Hill Type (BHT) Targets

Nick Archibald first recognised rocks with striking similarities to the Broken Hill ‘Mine Series’ near the Village of Palabek Kal, northwest of Kitgum in December 2011 – noting that:

“Companies had scoured the world looking for a similar rock sequence to the BHT-style hosts over the past 40 or 50 years. The exciting thing, on initial appraisal, about

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Kitgum-Pader is that we have the Potosi Gneiss lookalike, garnet sandstone, psammites and pelites, albitites, amphibolites and some evidence of iron formations. That is, the whole Mine Series that hosts the Broken Hill deposits”.

”Lead-zinc-silver deposits (characterised as BHTs) found in these terranes are world class to giant in size and have very high $-value ores. Examples in addition to Broken Hill include the Namaqualand deposits, Cannington and Zinkgruvan.

Those observations led to the formation of SEUL, the acquiring of ground and local staff and commencement of fieldwork in early 2013.

A very significant lead-zinc geochemical anomaly, named Pamwa, about 2.5 kilometres long, was soon found near Palabek Kal (see Figure 4 for geochemical images). It was initially discovered by the use of pXRF, but subsequently verified, and significantly added to, by wet geochemical results, which returned highly anomalous silver and cadmium. From pXRF analysis, Pb peaks at 224 ppm and Zn at 638 ppm. From 1 in 8 ACME analyses (i.e. 1km by 800m), Pb peaks at 125 ppm, Zn at 207 ppm, Ag at 158 ppb and Cd at 0.15 ppm. Background is ~10 ppm Pb, ~40 ppm Zn, ~30 ppb Ag and ~0.04 ppm Cd.

Figure 4 – Pamwa Pb (left)-Zn (centre)-Ag-Cd Images Late in the year a strong zinc-molybdenum-+/-copper anomaly was detected about 15 kilometres north of Pamwa, and was named Ayuu Alali (see Figure 5 for geochemical images). Wet chemistry determined that it is also highly enriched in silver. Ayuu Alali is at least 5 kilometres long by up to 3 kilometres wide, and is still ‘open’ north and south. As a comparison, the Broken Hill ‘Line of Lode’ orebodies outcrop over 4 kilometres. The ACME analyses from 100 metre by 50 metre sampling peak at 71 ppm Zn, 225 ppb Ag and 5.95 ppm Mo. Background is ~25 ppm Zn, ~30 ppb Ag and 0.6 ppm Mo.

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Zn Ag Mo

Figure 5 – Ayuu Alali Zn-Ag-Mo Images

Very recent geochemical interpretation by Nigel Brand has identified zinc-lead rich corridors, totalling 75 kilometres in length and containing Pamwa and Ayuu Alali, along with 32 kilometres of previously unrecognised prospective corridors, as illustrated on Figure 6.

Figure 6 – Fertile BHT Corridors on Pb+Zn Image

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Nigel Brand has stated of Pamwa and Ayuu Alali:

“These Zn-Pb values, which were verified by conventional aqua regia at ACME, an accredited Canadian laboratory, also showed elevated Ag and Cd values that correlate strongly with the Zn-Pb. These two trace elements (Ag & Cd) are characteristic of, and strongly support, the presence of Zn-Pb sulphide mineralisation” and in addition:

“Within BHT mineralisation, Ag provides a very high value credit and the Ag anomaly developed at Ayuu Alali is more extensive and more elevated than that at Pamwa”.

Of the zinc-lead rich corridors, Nigel Brand comments:

“Broken Hill Type mineralisation has been extensively documented from type examples around the world, along with the geological provinces which host this Zn-Pb mineralisation. On a regional setting, BHT mineralisation concentrates on transitions between lower Pb-rich quartzo-feldspathic sequences to Zn-rich psammopelitic and pelitic upper sequences.

Using both portable XRF and ACME aqua regia data, SEUL has demonstrably identified the contact between the Pb-rich lower sequence of the Kitgum Gneiss and the Zn-rich upper sequence of the West Karamoja Group.

The identification of this prospective contact, by combining regional Zn and Pb data, has identified, and highlighted, a 75km corridor of highly prospective stratigraphy extending through both Pamwa and Ayuu Alali Prospects, along with a 32km corridor of previously unrecognised corridor prospective for BHT mineralisation”.

Nickel-Copper-PGE Targets

During the initial regional sampling programme, a single line was extended to the west of Pamwa. Portable XRF Ni and Cr values suggested the presence of a potential mafic terrain. Additional Exploration Licences were applied for to cover magnetic features characteristic of mafic-ultramafic complexes. As sampling continued, a distinct southwestern zone of Ni-Cr-+/-Cu emerged (see Figure 7), which Jon Hronsky named the Nyimur Group and defined an ultramafic component within it named the Burukung Ultramafic Formation (as shown on Figure 3).

Nigel Brand reported:

“In the northern portion of the Nyimur Group, the high MgO Wilago complex was identified. Infill soil sampling has demonstrated that this Ni-Cr-Cu (plus PGEs from aqua regia analysis) complex extends over 5km and includes at least three prospective centres for Ni-Cu sulphide mineralisation”.

At Walago (see Figure 8 for geochemical images), maximum pXRF Ni and Cu were 1,171 ppm and 167 ppm respectively. Of the ACME 1 in 8 samples (i.e. 1km by 800m), maximum values were 1,233 ppm Ni, 144 ppm Cu and 52 ppb Pt+ Pd. Background is ~30 ppm Ni, 30 ppm Cu, 2 ppb Pt and <5ppb (detection Limit) Pd.

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Figure 7 – PXRF Ni Image of Northern Kitgum-Pader – highlighting the Nyimur Group defined by high Ni

Figure 8 – Walago Ni & Cu Images

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Regional-scale sampling to the northeast of the Ayuu Alali Zn-Ag-Mo Prospect detected highly anomalous Ni and Cu, within what Jon Hronsky has interpreted as one of the Waal Gabbroid Suite intrusives. Infill at this anomaly disclosed the presence of a coherent and robust Cu-Ni anomaly, extending for over 600 metres with a maximum and coincident value of 879 ppm Cu and 3,208 ppm Ni (see Figure 9 for geochemical images). Verification of selected samples using a four acid digestion confirmed the presence of the Cu and Ni anomaly with elevated Pd and Pt values, to a maximum of 31.5 Pt+Pd, from lead-fire assay, centred at the core of the anomaly. Nigel Brand commented:

“The strong correlation between Cu and Ni, the coherence and robustness of the anomaly and the presence of elevated PGEs are characteristic of soil anomalies derived from Ni-Cu sulphides”.

Figure 9 – Akelikongo Ni & Cu Images with Pt+Pd

Jon Hronsky has commented on the Ni-Cu prospectivity of the Burukung Ultramafic Formation and of the Waal Gabbroid Suite.

“The Burukung Formation comprises an extensive high-MgO ultramafic sequence, with locally outcropping massive serpentinite, and intercalated metasedimentary units. Geologically, it closely resembles the ultramafic sequences which host important NiS deposits in the Yilgarn Craton of Western Australia such as Kambalda. In a regional-scale it has a prospective tectonic setting.”

“The Waal Gabbroids are a suite of Neoproterozoic differentiated intrusions, the same age as the giant Jinchuan nickel deposit in China, that have been emplaced along a major tectonic boundary at the margin of the Congo Craton. These rocks locally demonstrate unusual variable-textured zones, which often characterise NiS prospective mafic intrusive suites. Akelikongo, which is interpreted as part of Waal

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Gabbroid Suite, has characteristics consistent with that of a chonolith – which is the most prospective type of intrusion in such a setting (Beresford and Hronsky, 2013)”.

Of the wider prospectivity of the Nyimur Group and the Burukung Ultramafic Formation, Nigel Brand has stated:

“Vailant et al (2014) have demonstrated the application of portable XRF data for the exploration of Ni sulphides and using standard Ni-fertility ratio’s (eg Barnes and Brand 1999). Sipa’s pXRF data has been reprocessed to further identify potential high MgO complexes with the potential to host Ni sulphides. In addition to Akelikongo and Walago, a further 12 potential high MgO complexes have been identified which require further evaluation”.

Gold A strong and distinct linear arsenic anomaly, named Abwoc-beel, was detected mid year within the Kitgum Gneiss. Infill 200 metre by 50 metre sampling was completed over an area of about 3 kilometres by 1 kilometre and samples were sent to ACME for aqua regia analysis. The results returned anomalous Au values up to 210 ppb, and extending for over 2.5 kilometres, as a coherent and elevated anomaly and showing a strong correlation with As (to 158 ppm) and Bi (to 3.97 ppm). Background Au is ~2 ppb, As ~4 ppb and Bi ~0.07 ppm. See Figure 10 for geochemical images. There is very little outcrop in the vicinity, though it tectono-metallogenic position in the Kitgum Gneiss allows comparison with the setting of the Tropicana Gold Deposits in Western Australia.

Figure 10 – Abwoc-beel Au, As & Bi Images

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2014 looks to be a promising year for Sipa with the planned continued evaluation of the Kitgum-Pader Project and the belief that the Sedimentary Basin hosting the Thaduna Copper Project is very clearly prospective for very large sediment-hosted copper deposits with affinities to the Central African Copperbelt-Mt Isa Copper-Nifty ‘spectrum’ of deposits. The results of the recently reported AMT survey at Thaduna are considered to have substantially added to our knowledge of the geological setting of, and controls on, copper mineralisation at Enigma and on other copper occurrences and geochemical anomalies, at Thaduna. As stated previously, the Company is continuing discussions with a number of interested parties with respect to funding options for both Kitgum-Pader and the Thaduna Copper Project. The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled by Mr M G Doepel who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Doepel is a full-time employee of Sipa Resources Limited. Mr Doepel has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Doepel consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

For more information: Mike Doepel, Managing Director Sipa Resources +61 (0) 8 9481 6259 [email protected]

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JORC Code, 2012 Edition – Table 1 report template Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary

Sampling techniques

• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the Public Report.

• In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Soil samples were taken initially at 1km line and 100m sample spacing and then infilled to 200m line and 50m sample spacing. The sample was taken from about 30cm depth and sieved with a 250# sieve. The samples were then dried.

• The samples were analyzed in the Sipa office in Kitgum using a portable XRF analyzer. Industry standards and blanks are used to monitor the calibration of the instrument. One in eight samples was sent to ACME laboratories in Canada for check analyses and to get precious element analyses which uses industry standards, blanks and repeats for quality control.

• Soil Sample size was 150g. Approximately 10g of the sample were used for the XRF analyses and a 30g charge was used for the ACME analyses.

Drilling techniques

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• No drilling is reported.

Drill sample recovery

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.


Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• The total length and percentage of the relevant intersections logged.


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Sub-sampling techniques and sample preparation

• If core, whether cut or sawn and whether quarter, half or all core taken.

• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• No drilling is reported • The samples were homogenized before

taking a split for the XRF analysis and the remainder of the sample (one in eight samples) was sent to ACME laboratories.

• The soil samples are taken from a residual soil profile and are considered representative of the substrate rock. No field duplicates were taken.

• Infill samples confirmed and substantiated the initial anomaly.

• Soil samples are the homogenized product of weathered rock.

Quality of assay data and laboratory tests

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

• Ni analyses have been done with both a fire-assay fusion and a mixed assay digest. The fire-assay fusion is considered a total digest and the mixed acid digest is considered a near complete digest. All other elements have been analyzed using an aqua regia digest which is considered a partial digest. The analytical digests are considered appropriate for the sample material.

• An Olympus Innov-X Delta Premium portable XRF analyzer was used with a Rhenium anode in soil mode at a tube voltage of 40kV and a tube power of 200µA. The resolution is around 156eV @ 40000cps. The detector area is 30mm2 SDD2. A power source of Lithium ion batteries is used. The element range is from P (Z15 to U (Z92). A cycle time of 180 seconds Soil Mode was used and beam times were 60 seconds. A propylene3 window was used. No calibration factors were applied.

• One in eight samples was sent to ACME laboratories in Canada for quality control analyses and for precious metal analyses. ACME uses repeat analyses, industry standards and blanks to ensure quality control.

Verification of sampling and assaying

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes. • Documentation of primary data, data entry

procedures, data verification, data storage (physical and electronic) protocols.

• Discuss any adjustment to assay data.

• The data were examined by the independent consultant Nigel Brand, Geochemical Services, West Perth

• No drilling is reported. • The primary data were audited and

verified and then stored in a SQL relational data base.

• No data have been adjusted.

Location of data points

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Specification of the grid system used. • Quality and adequacy of topographic

control.

• Sample points were located using handheld GPS receivers with an accuracy of +/- 5m.

• The data were recorded in longitude/latitude WGS84.

• The terrain is largely flat.

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Data spacing and distribution

• Data spacing for reporting of Exploration Results.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

• The tenement was initially soil sampled at 1km line and 100m hole spacing and the anomaly was infilled to 200m line and 50m hole spacing which is considered sufficient to define the soil anomaly of about 1000m by 400m.

• No sample compositing has been applied.

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• The reported anomaly is northnortheast trending and has been sampled along East-West sample lines which is considered sufficient to define the anomaly.

• No drilling results are reported.

Sample security

• The measures taken to ensure sample security.

• Samples were taken and transported by Sipa personnel to the Sipa office in Kitgum. Prior to XRF analyses the samples are locked in the Sipa office. Samples for the ACME laboratory were sent with an international courier.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• The data were examined by the independent consultant Nigel Brand, Geochemical Services, West Perth and considered appropriate.

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary

Mineral tenement and land tenure status

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• The results reported in this Announcement are on granted Exploration Licences held by Sipa Exploration Uganda Limited, a 80% owned subsidiary of Sipa Resources Limited and 20% owned by Geocrust Pty Ltd

• At this time the tenements are believed to be in good standing. There are no known impediments to obtain a license to operate, other than those set out by statutory requirements which have not yet been applied for.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Extensive searches for previous exploration have not identified any previous mineral exploration activity. F

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Geology • Deposit type, geological setting and style of mineralisation.

• The Kitgum-Pader Project covers reworked, high grade metamorphic, Archaean and Proterozoic supracrustal rocks heavily overprinted by the Panafrican Neoproterozoic event of between 600 and 700Ma. The tectonostratigraphy includes felsic ortho- and para-gneisses and mafic and ultramafic amphibolites and granulites and is situated on the northeastern margin of the Congo Craton. The geology and tectonic setting is prospective for magmatic Ni, Broken Hill type base metal and orogenic Au deposits.

Drill hole Information

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole

collar o elevation or RL (Reduced Level –

elevation above sea level in metres) of the drill hole collar

o dip and azimuth of the hole o down hole length and interception depth o hole length.

• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.


Data aggregation methods

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• Only original data are reported with no weighting averaging or grade truncations.

Relationship between mineralisation widths and intercept lengths

• These relationships are particularly important in the reporting of Exploration Results.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).


Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Plan view maps of the reported soil anomaly are included into this announcement.

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Balanced reporting

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.


Other substantive exploration data

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• There is no other material exploration data that have not been previously reported.

Further work • The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Sipa Resources Limited is currently integrating and reviewing all the exploration results. Further work will be determined upon a full analysis and interpretation of results.

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Documents

Outstanding Results from Integration of Kitgum-Pader ... · The recognition of rocks ... was previously Senior Exploration Geochemist for Western Mining Corporation ... in Vancouver