Sipa Resources Ltd (ASX:SRI) has entered into a binding heads of agreement (HOA) to form an innovative joint venture with Buru Energy Ltd (ASX:BRU) to progress base metals exploration at the Barbwire Terrace Project in Western Australia.
The mineral exploration alliance sees Buru funding the first $250,000 of on-ground exploration activities to earn a 50% interest.
Sipa will operate the on-ground exploration activities and has partnered with Buru because of their ‘sophisticated’ basin models and data sets developed over years of petroleum exploration and production from the Ungani oil field.
The company believes the application of petroleum exploration models and techniques in conjunction with its own mineral exploration approach across the areas of mutual interest will enable mineralisation at Barbwire Terrace to be efficiently targeted at much shallower depths than that found at Admiral Bay.
Barbwire Terrace background
Barbwire Terrace covers the southern margin of the Fitzroy Trough where historic drilling confirmed the potential for mineralisation of an identical style Mississippi Valley Type (MVT) to the well-known Lennard Shelf deposits located along the northern margin of the trough.
MVT mineralisation of the type mined on the Lennard Shelf has historically produced high purity concentrates and are highly sought after by smelters, making this a high-value exploration target.
Base metal mineralisation along the Lennard Shelf is hosted in outcropping Devonian-aged carbonate reefs that are present but obscured along the Barbwire Terrace region.
Within the same geographic area, petroleum exploration has been ongoing for several decades utilising different techniques and data sets that that traditionally used by minerals explorers.
It is noteworthy that petroleum exploration drilling in 1981 resulted in the identification of the large Admiral Bay lead-zinc deposit in similar carbonate units around 250 kilometres west of the Barbwire Terrace project.