Peel continues to strengthen Mallee Bull

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THE DRILL SERGEANT: The news keeps getting better for Peel Mining (ASX: PEX) with its most recent drillhole, MBDD009, returning very strong copper mineralisation at the company’s Mallee Bull project in New South Wales.

The company’s latest drillhole has intersected a broad zone of stringer/breccia sulphide mineralisation from 533m to 602m (69m) including an 18m zone of high grade chalcopyrite-dominant mineralisation from 542m.

Peel said the intercept represents the deepest hit encountered to date at the Mallee Bull project and shows that copper-dominant sulphide mineralisation now extends from about 150m below surface to at least 600m below surface.

It also shows increasing copper grades with depth.

Peel previously reported a downhole EM (DHEM) survey completed in two earlier drillholes had defined a strong conductor response at about 580m below surface that was consistent with the known mineralised horizon.

 

Source: Company announcement

 

Hole MBDD009 was designed to intersect the modelled conductor plate at a depth of at least 500m below surface.

 The hole intercepted multiple mineralised zones including a broad stringer/breccia sulphide zone returning:

–    69 metres at 4.01 per cent copper equivalent (3.48 per cent copper, 34 grams per tonne silver, 0.14 grasm per tonne gold) from 533 metres – including a high grade zone of 18 metres at 10.69 per cent copper equivalent (9.35 per cent copper, 83g/t silver, 0.43g/t gold) from 542m.

–     Individual metres were recorded grading up to 22.6 per cent copper, 231g/t silver, 4.30g/t gold.

“The results from MBDD009 and the Phase 2 drill programme in general are outstanding,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“The broad and strong mineralisation reinforces Mallee Bull’s economic potential and ranks it amongst the most promising Greenfield discoveries in recent times for both New South Wales and Australia in general.

“The increasing scale and tenor of mineralisation at deeper levels within Mallee Bull bodes well for its future development prospects.”

Peel has also received assay results for MBDD008 (60m north of MBDD009).

This hole intersected 35m of mineralisation from 374m followed by several zones of variable mineralisation from 442m.

Assays returned include:

–    35m at 3.42 per cent lead, 1.51 per cent zinc, 0.65 per cent copper, 54g/t silver, 1.16g/t gold, 318g/t cobalt from 374m – including a high grade zone of 15m at 7.27 per cent lead, 3.01 per cent zinc, 0.78 per cent copper, 73 g/t silver, 0.74 g/t gold, 289 g/t cobalt from 394m;

–    8m at 1.45 per cent copper equivalent (1.23 per cent copper, 12g/t silver, 0.09g/t gold) from 461m;

–    21m at 1.95 per cent copper equivalent (1.48 per cent copper, 24g/t silver, 0.25g/t gold) from 479m; and

–    4m at 3.93 g/t gold from 504m.

The true width of the above mineralised zones is interpreted to be between approx. 60 per cent of the downhole intercept.