Sipa to Drill Near 1.6Moz Tunkillia Gold Deposit with RC Rig Next Week

Sipa’s Strategic Entry into South Australian Gold Exploration

Sipa Resources Limited (ASX, SRI) is poised to commence its inaugural gold drilling campaign at the recently acquired Tunkillia North and Nuckulla Hill projects in South Australia’s Gawler Craton. This move marks a significant milestone for the company as it seeks to establish a foothold in one of Australia’s most prospective gold regions.

The company has secured all necessary approvals, including heritage clearance from the Gawler Ranges Aboriginal Corporation and Program for Environment Protection and Rehabilitation (PEPR) permits, clearing the way for the mobilisation of a reverse circulation (RC) drill rig within days. This initial drilling phase will focus on testing multiple targets within the Yarlbrinda shear zone, a structurally significant corridor that hosts Barton Gold Holding Limited’s nearby 1.6 million ounce Tunkillia gold deposit.

Targeting Known Mineralisation with New Exploration

The maiden drilling program will concentrate on the Bimba and Sheoak prospects at Nuckulla Hill, aiming to infill and extend previously identified gold mineralisation. These prospects lie within the same shear zone that has demonstrated substantial gold endowment, offering a compelling geological setting for discovery. Following the RC drilling, Sipa plans to undertake additional aircore drilling to further delineate the mineralised zones and expand its understanding of the project’s potential.

Managing Director Andrew Muir highlighted the significance of the approvals and the timing of the program, noting the increasing exploration and development activity in South Australia. He emphasised the company’s optimism about testing high-quality targets in a region with strong commodity sentiment and a proven track record for gold discoveries.

Implications for Sipa’s Growth and Regional Exploration

This drilling campaign represents a critical step in Sipa’s strategic pivot towards gold exploration within the Gawler Craton, complementing its existing portfolio in Western Australia. The company’s methodical approach; securing heritage and environmental approvals before mobilising rigs; reflects a commitment to responsible exploration practices and community engagement.

While no assay results have been released yet, the proximity to a major gold deposit and the targeting of structurally favourable zones suggest that positive outcomes could materially enhance Sipa’s resource base and market profile. Investors will be watching closely as drilling progresses and results emerge, potentially reshaping the company’s valuation and strategic outlook.