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Sipa hits large Nickel / Copper system in Uganda

New assay results from Sipa Resources’ latest drill program at the Akelikongo nickel-copper project in Uganda have returned strong hits of up to 2.4% nickel and 2% copper.

The initial assay results were from just two of the recently completed 16-hole program.

The company told the ASX this week that the results were considered to be an important breakthrough for the project because they demonstrated that the large nickel-copper system strengthened down-plunge, as predicted by Sipa’s geological model.

The company is exploring for a nickel-copper sulphide deposit similar to the Nova-Bollinger find in W.A, which also thickens and improves down-plunge. Sipa recently extended the down-plunge extent of mineralisation at Akelikongo by 100 metres, but they have still only scratched the surface of an ultramafic body that could be several times larger than Nova-Bollinger.

Investors certainly saw the significance, lifting Sipa’s share price by more than 10% on the release of the results.

The new assay results from featured 84.5 metres at 0.42% nickel and 0.19% copper from 138 metres, including 5.2 metres at 1% nickel and 0.41% copper from 213 metres.

Other results included 38 metres at 0.51% nickel and 0.17% copper from 194 metres with 0.4 metres of that intersection grading 2.4% nickel and 0.2% copper from 228 metres.

Sipa’s Managing Director, Lynda Burnett, said “The recent drilling program could be considered a watershed for the project, as it has  confirmed that the basal mineralised position improves with both width and grade as we go deeper. The presence of economic grades of nickel and copper within a system of this scale and fertility is clearly a very important development.”

“In addition, the highest nickel result also corresponds to high cobalt values of up to 777ppm - another important feature of the system which clearly requires further investigation given the historically high price for cobalt at the moment.”

“We are looking forward to receiving the balance of the results and formulating our plans for the next stage of evaluation of this globally significant nickel-copper discovery.”

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Share Price

Closing price for the last 90 trading days
Source: Morningstar

Total Shareholder Return as at 30/11/18

1 year TSR5 year TSR
33rdLegend Mining127%30%
184thRTG Mining16%
353rdSipa Resources-9%-29%
477thWest African Resources-28%18%
593rdFocus Minerals-44%-21%
741 WA (and selected non WA) listed companies ranked by 1 year TSR relative to other companies with similar revenue
Source: Morningstar

Share Transactions

30/11/18
$15k Bought
13/11/18
$15k Bought
13/11/18
$15k Bought
Total value as at the date of the transaction
Source: Morningstar

Revenue

176th↑Sipa Resources$365k
177th↓Focus Minerals$364k
178th↓Legend Mining$354k
180th↓RTG Mining$341k
181st↑West African Resources$325k
509 listed resources companies ranked by revenue.
Source: Morningstar

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