SRI - Sipa Resources

[Dr Doom]

Industry Group Metals & Mining - 151040
Shares on Issue 238,369,910
Price (previous close in cents) 8.6 Market Cap ($) 20,499,812

Sipa Resources Limited (SRI) is an Australian based exploration and mining company. Sipa's main focus is on preserving and increasing its reserve base through exploration initiatives and joint ventures. It has projects located in WA, NT, NSW and QLD. Sipa has a gold exploration agreement with Newmont (NEM) and various other agreements with listed companies.

NEWMONT EXPLORATION ALLIANCE: In June 2005, Sipa signed an Australian wide gold exploration alliance with Newmont (NEM). Newmont will fund all exploration until a decision to mine is made. Sipa will have a 20% interest in any discoveries/ developments. Sipa will be the manager during the Generative Stage and the initial manager during Exploration Phases.

ASHBURTON GOLD PROJECTS (20%): Sipa has a 20% free-carried interest with Newcrest in the Ashburton gold project. During the December 2005 quarter, Newcrest drilled 10 RC holes for 1,578m at the Merlin prospect, located 220 km NW of Mt Olympus. Best drill results include: 70m @ 0.48 g/t from 8m and 13m @ 0.32 g/t from 85m.

PANORAMA CU-ZN PROJECT (DILUTING TO 40%): Panorama is a Volcanogenic Massive Sulphide (VMS) Province located in the Pilbara granite-greenstone terrain some 120 kilometers southeast of Port Headland. In an agreement with CBH Resources (CBH), CBH must spend $m within 5 years to earn a 60 interest in the project. Total mineral resources at the Kangaroo Caves deposit are 1.7mt @ 0.6% Cu and 9.8% Zn. At the Bernts deposit, total inferred resources are 0.6mt @ 0.3% Cu, 1.7% Pb and 7.8% Zn.

OTHER PROJECTS: Sipa also has varying interests and agreements in the Coogardie Nickel and Gold Porjects, Ularring Rock Gold Project, Broken Hill Basemetals Project, Thaduna Basemetals and Gold Porject and the Woodline Gold Project. All projects are located in WA.

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Sipa starting to hot up the last few days, investors stating to factor in the huge potential of 'the Alliance', and promising projects.

 

[camaybay]

This company has been "dead" since March 05. The chart seems to show some life since Dec 06. Generally when something good should happen, it doesn't

DYOR

 

[Dr Doom]

This ones in my 'penny dreadful sleeper' category. Apart from having some old high cost mines which could come back to life if/when the gold price appreciates any more, they are also in partnership with Newmont as their defacto Australian exploration arm. Knowing this I thought it was worth a punt at the depressed share price around 5c, very little downside risk. Volume is picking up over the last couple of weeks too. One to watch.

 

[camaybay]

The sp is now 0.11!, 11.30, 917000. Someting must have happened, news to come?

DYOR

 

[camaybay]

Maybe this chart will work. Possible direction?

DYOR

 

[Dr Doom]

Yes, second wave looking stronger, more sustainable, looking to test 12c again.

 

[Uncle Festivus]

Hi all,
Found this buried in the latest report - I don't know much about uranium assays, is this a decent result?

DORISVALE URANIUM AND BASEMETALS PROJECT – NT
(Sipa 100% EL Applications and the right to earn 70% in Red River Resources Limited EL Applications)

The Northern Territory Minister for Mines recently granted Sipa consent to negotiate with the Northern Land Council on behalf of the Traditional Aboriginal Owners for the key Red River Resources EL Application that covers the Dorisvale Lead Zinc Prospect where anomalous uranium, peaking at 320 ppm was detected by Ashton Mining over 12 kilometres of strike in the 1980’s.
It is hoped that access to the ground may be obtained for the current field season.

 

[camaybay]

Uncle Festivus,
Thx for the info, sounds promising, chart has improved and will watch with interest SP 0.099. vol 578th other indicators are encouraging.

DYOR

 

[Uncle Festivus]

This one starting to move today as per the potential breakout thread. Could possibly be speculation on NT uranium prospects. Looks like those who know more than us are setting themselves up.
Just looking at market depth this looks to have taken the market by surprise - very few on the sell side & bidders filling quickly.

 

[Uncle Festivus]

Classic insider trading this one, & promptly gets a speeding ticket from the ASX. And the usual response - No, couldn't possibly be aware of any reason the sp took off yesterday BEFORE the ann. Who's complaining, everyones a winner

 

[Pommiegranite]

Announcement:

http://www.asx.com.au/asx/statistic...rchByCode&releasedDuringCode=W&issuerCode=MDX

Mindax (MDX) to aquire 70% of SIPA's Ularring Rock Project through to a decision to mine.

Can anyone please tell me why SIPA would agree to this? No sums of money are mentioned? Is this free?

Why do companies do this? eg KAL to Burey?

 

[Uncle Festivus]

Announcement:

http://www.asx.com.au/asx/statistic...rchByCode&releasedDuringCode=W&issuerCode=MDX

Mindax (MDX) to aquire 70% of SIPA's Ularring Rock Project through to a decision to mine.

Can anyone please tell me why SIPA would agree to this? No sums of money are mentioned? Is this free?

Why do companies do this? eg KAL to Burey?

Yes it's a bit light on, but I read it as Sipa retaining a 30% interest in return for Mindax joint venture to prove the permits by exploration expenditure, up to decision to mine. I assume that Sipa must think their other various projects are better value, but still want to keep an interest in this one. Sipa's many projects look to be finally gathering some interest, as shown in the share price lately.

 

[Pommiegranite]

Yes it's a bit light on, but I read it as Sipa retaining a 30% interest in return for Mindax joint venture to prove the permits by exploration expenditure, up to decision to mine. I assume that Sipa must think their other various projects are better value, but still want to keep an interest in this one. Sipa's many projects look to be finally gathering some interest, as shown in the share price lately.

and as a further thought...SIPA just did a shareplacement (at a stupendous 10.5c.. i.e 0.5c less than current SP...woohoo)

This added to the fact that they're now offloading 70% interest on Ularring, wouldn't this suggest that they're accumulating dollar$.

The big question is ..."what for?"

What's THE major expense for an explorer which wants to move to the next base...that's right...they are about to build a mine!!

The question is which of their many projects is moving forward?

 

[Pommiegranite]

Here are some facts

• 
  SIPA have recently announced a placement for existing shareholders at 10.5c
  The SP is currently fluctuating between 10.5c and 11c
  The placement offer expires on 22nd June
  IF SIPA want the full allocation to be taken up, the current SP needs to move north to make the placement worthwhile to investors.

Therefore I believe a positive announcment is forthcoming within the next 2 weeks. It make sense doesn't it?

By the way,

There's a new broker report on SIPA on stockresources.com.au

Would appreciate it if anyone could paste some of it on here, or at least give us the gist of it.

Thanks

 

[Uncle Festivus]

Well we got the good reports right on que, so here's hoping it breaks out past 14c, which has been a resistance level.

The Directors of CBH Resources are pleased to announce that RC drilling at the Kangaroo Caves deposit within the Panorama JV by Sipa Resources Limited has intersected high grade zinc mineralization including 20m @ 13.7% Zn and 0.2% Cu and 15m @ 11.6% Zn and 0.3% Cu. These intersections were recorded in the upper part of the deposit and will be further evaluated for open cut potential as additional feed for CBH’s planned Panorama mill.​

 

[Pommiegranite]

Well we got the good reports right on que, so here's hoping it breaks out past 14c, which has been a resistance level.

Looks good to me...15 already.

Uncle..what do you think the chances are of us getting full allocations on the share offer? I posted my cheque today

 

[Uncle Festivus]

Looks good to me...15 already.

Uncle..what do you think the chances are of us getting full allocations on the share offer? I posted my cheque today

Woo hoo, topped at 16c:dance:. I'm already 'fully exposed' to this one, so can't allocate any more funds, although I'm having second thoughts about it now. If the sp holds till next Friday there's a fair chance that it will be scaled back pro-rata.

 

[Uncle Festivus]

The test now is to see if it holds at previous resistance around 14c.
..........................................................................................

 

[Pommiegranite]

Announcement out:

Entitlement offer over subscribed by $2million....surprise surprise

However, SIPA have decided not to scale back the offer.

How nice of them

More shares in issue=greater dilution=tomorrow fall in SP.

Nice of them to wait until after closing to make the announcement.

 

[lioness]

Expect further announcement due any day on next 11 holes of high grade Zinc, should be enought to break the 17 cent resistance line.