Replies to post #1014 on Zinc

[Lone Clone]

Further High-Grade Zinc and Copper intersections at Sipa's Kangaroo Caves deposit
Friday , 06 Jul 2007 Sipa Resources

http://www.mineweb.net/mineweb/view/mineweb/en/page674?oid=23086&sn=Detail

Results From Seven Of Nine Holes Received Show Significant Values

Increases Likelihood Of Significant Tonnage For Planned CBH Concentrator

Updated Resource Estimate Once Results Of Last Two Holes Received

Australia's Sipa Resources Limited has received assay results for a further nine RC drill holes at its Kangaroo Caves deposit in Western Australia, seven of which returned significant intersections. The best result came from hole KCC31 which cut an estimated true thickness of 13m grading 7.58p.c. zinc and 0.80p.c. copper from 228m, the first 6m of which averaged 12.24p.c. zinc and 1.64p.c. copper.

Other intersections (all estimated true widths) include: 2m of 8.38p.c. zinc from 159m, and 6m of 2.54p.c. copper and 1.71p.c. zinc from 168m, followed immediately by 4m of 5.04p.c. zinc from 174m in KCC23; 6m of 1.96p.c. copper and 4.55p.c. zinc from 182m in KCC24; 16m of 4.21p.c. zinc from 146m in KCC26; 4m of 9.81p.c. zinc and 1.24p.c. lead from 146m, followed immediately by 5m of 2.73p.c. copper from 151m in KCC27; 14m of 7.87p.c. zinc from 187m followed immediately by 2m of 3.68p.c. copper in KCC28; 7m of 5.75p.c. zinc from 217m in KCC30.

Sipa says it continues to be encouraged by the results which, when combined with those from the earlier holes in the drilling programme and existing information on the deposit, further enhance the likelihood that Kangaroo Caves will provide significant additional ore to feed the concentrator which CBH Resources plans to construct at its Sulphur Springs project, 6km to the north.

Kangaroo Caves lies within the Panorama Exploration Project in the Pilbara district. CBH Resources is earning 60p.c. interest by funding A$4m of exploration, with Sipa being paid to manage this exploration.

A total of 17 holes has been drilled at Kangaroo Caves, and Sipa says that significant intersections have been returned from 12 of the 15 holes for which results have been received. The holes were mostly on 40m-spaced infill drilling sections to allow for an upgrading of the current resource estimate of 1.7m tonnes grading 9.8p.c. zinc and 0.6p.c. copper. This resource estimate will be updated as soon as all drilling results are received and collated, the company adds.

At least two positions exist to extend the deposit further to the west and south-east at relatively shallow depths, and the company's next drilling programme at Panorama, presently scheduled for September, will investigate this potential for further resources amenable to open pit mining.

Sipa is awaiting results from two holes at Kangaroo Cave and from four holes at the Jamesons Prospect and two at Breakers. The September programme will include additional drilling at these two prospects and at some or all of the Anomaly 45, Man O'War, Nambucca and Roadmaster prospects.

TABLE OF DRILLING RESULTS AND LOCATION MAP AVAILABLE ON REQUEST AND ON SIPA WEBSITE

Further Info: Mike Doepel, Managing Director, Sipa Resources Limited. Tel: [phone]

Ron Marshman/John Greenhalgh, City of London PR Limited. Tel: [phone]
http://www.sipa.com.au/