Sipa Resources (ASX: SRI) is pleased to announce that drilling has commenced for the 2008 field season at Sipa’s Woodline Gold Project, centred about 150 kilometres southeast of Kalgoorlie in Western Australia’s Eastern Goldfields Province.

Newmont Exploration Pty Ltd (Newmont), a wholly-owned subsidiary of Newmont Australia Limited, who may earn a 70% interest in Woodline, have a proposed Budget of $3.8 million for the Project in calendar year 2008.

The initial drilling will comprise at least 7,000 metres of RAB/Aircore at the Sipa 100%-owned Socrates, Heraclitus and Theofrastos Prospects from which very encouraging first-pass drill results were released late last year (see Sipa’s ASX Announcements of 19 October and 29 November 2007), including 22 metres grading 3.05 g/t gold from 15 metres at Socrates and 17 metres grading 0.2 g/t gold from 28 metres to end of hole at Heraclitus.

In addition, a line of Reverse Circulation drilling will be conducted at Heraclitus to follow up the hole described above, as well as holes to follow up an anomalous gold intersection by earlier operators within the Comet Farmin, where Sipa-Newmont may earn 70%.

This initial drilling will be followed through the field season with substantial RAB/Aircore programmes at a number of gold-in-soil geochemical anomalies that have not yet had any drilling, as well as RC programmes and Diamond drill testing beneath the Socrates intersection described above. Other targets are also expected to be generated from an Induced Polarisation geophysical survey presently being conducted in the Socrates environs.

Woodline comprises 2,000 square kilometres of Exploration Licences and Applications. It includes 1,380 square kilometres of 100% Sipa ground and 450 square kilometres held by Comet Resources Limited and 170 square kilometres held by Image Resources NL, in which Sipa-Newmont may earn 70%.

The Project covers two rock sequences, both of which are prospective for large gold deposits:

- Archaean greenstones, typical of the rocks that host very large deposits like the Golden Mile and Kanowna Belle, are present in the central and northern parts of the Project.

- The southeastern part of the Project covers a large area – some 900 square kilometres – of the ‘Transition Zone’ between the northerly trending greenstones and the northeastsouthwest trending Proterozoic Albany-Fraser Province.