Sample logging at Sipa Resources Akelikongo project in Uganda

Sipa firms up “globally significant” Nickel/Copper/Cobalt play in Uganda

West Perth based Sipa Resources might be onto something at their Akelikongo Nickel/Copper prospect at the Kitgum-Pader project in Uganda.

The company recently completed an initial 12 hole RC drilling program returning solid numbers across very wide intercepts at the project, many of which start from surface.

One of the better results from the latest round of drilling includes a 50m intersection grading 0.43% Nickel, 0.13% Copper and 0.03% Cobalt commencing right at surface.

A number of holes experienced more than one large intersection split up by small sections of pegmatite including a 32m intersection from surface grading 0.41% Ni, 0.12% Cu and 0.02% Co with mineralization reoccurring at the 38m mark with a 22m intersection grading 0.39% Ni, 0.14% Cu and 0.02% Co.

Another hole showed a 30m intersection grading 0.40% Ni, 0.13% Cu and 0.02% Co from surface and then at the 86m mark another 36m mineralized zone occurred with grades of 0.37% Ni, 0.11% Cu and 0.02% Co. This zone included a 6m intersection of semi-massive sulphides grading 0.42% Ni 0.14% Cu and 0.02% Co.

Other drill hole results included 44m @ 0.41% Ni, 0.19% Cu and 0.03% Co from surface and then from the 45m mark another 4m intersection of semi-massive sulphides grading 0.57% Ni, 0.23% Cu and 0.03% Co occured. 

The best result of the campaign to-date was a 10m intersection grading 1% Nickel and another 4m intersection grading 1.8% Copper.

The widest result was an impressive 119m intersection grading 0.40% Ni, 0.12% Cu and 0.02% Co right from surface including 1m at 1.17% Ni, 0.39% Cu and 0.05% Co.

One of the more intriguing finds of the campaign was the discovery of a previously unknown “embayment” or pooling of mineralization in the footwall which now presents as a very attractive potentially high grade target for follow up drilling.

Sipa say the discovery of Akelikongo could be “globally significant” and they have likened its geology to the geology that occurs at the famed “Voisey’s Bay” nickel discovery in Canada.

Sipa Resources Managing Director Lynda Byrnett said “Chonolith-hosted nickel deposits are an important source of high-value nickel, copper and PGE production globally – as evidenced by major deposits such as Voisey’s Bay in Canada. They are generally very large systems and, once the orientation and distribution of metal is understood, they can be rich and high grade. We are very encouraged as to the potential for Akelikongo to emerge as a globally significant nickel-copper discovery, and we are looking forward to planning our next phase of drilling over the coming months.”

“With all of the assays now to hand, I think we can say that the program has been highly successful. The presence of broad zones of disseminated nickel-copper-cobalt mineralization together with zones of semi-massive sulphides has confirmed the significant scale and metal endowment of the system.”

The company says the latest drill results represent the highest grade and widest matrix to semi-massive intercepts drilled at the project to date and they have provided a significant advance in Sipa’s understanding of the emerging mineral system at Akelikongo.

An independent analysis of the results will now occur with a follow up drill campaign planned to chase down the higher grade source of the deposit.

One thing seems certain however, with mineralized intersections up to 120m thick, if Sipa find a mineable resource at Akelikong it is likely to be damn big.

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Total Shareholder Return as at 31/08/18

1 year TSR5 year TSR
308thPlatina Resources18%10%
416thSipa Resources0%-33%
456thRey Resources-3%-3%
606thBlack Rock Mining-28%11%
718thHorizon Gold-48%0%
737 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

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212th↓Platina Resources$160k
213th↑Horizon Gold$158k
214th↑Sipa Resources$155k
215th↑Rey Resources$145k
216th↑Black Rock Mining$145k
507 listed resources companies ranked by revenue.
Source: Morningstar

Remuneration from Sipa Resources

337thLynda Burnett$338k
578thTara Robson$205k
715thCraig McGown$83k
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