Peel Mining strengthens Cobar Superbasin portfolio

THE INSIDE STORY: Perth-based Peel Mining (ASX: PEX) has widened its focus on the Cobar Superbasin located in New South Wales.

Peel Mining has enjoyed a promising run of news from its two Cobar Superbasin projects in recent times with the discovery of the Wirlong copper deposit and the high-grade Mallee Bull copper-polymetallic deposit.

There has been more recent good news from both of these projects, however, we will get back to that later.

Firstly we need to look at the company’s latest Cobar dalliance – the Wagga Tank project.

Peel completed the acquisition of the tenements EL6695 and EL7226 from MMG Australia and Golden Cross Operations earlier this year.

The tenure covers a number of prospects Peel consider well worth the effort of following up, including Wagga Tank, Fenceline, Siegals, BMW, and Mt Allen.

Of these Wagga Tank is emerging to be the ‘prospect most likely’.

Peel has already designated Wagga Tank to be a, “highly prospective polymetallic (zinc-lead-gold-silver-copper) prospect with many significant drill intercepts”.

Although there has been no drilling carried out on the deposit since 1989, historic programs undertaken by previous owners led to the defining of a non-JORC compliant inferred resource estimate with results, including:

HD-9
5.3 metres at 2.09 grams per tonne gold, 1164g/t silver, 9.36 per cent copper, 0.78 per cent lead from 119.8m;

HD-11
15.4m at 133g/t silver, 0.4 per cent copper, 4.5 per cent lead, 12.5 per cent zinc from 140.1m;

HD-12
7.5m at 99.4g/t silver, 7.25 per cent lead, 18 per cent zinc from 215.6m; and

HD-14
2.5m at 0.24g/t gold, 100g/t silver, 0.25 per cent copper, 8.59 per cent lead, 11.6 per cent zinc from 216.2m.

“We ran the ruler over the historic drilling and immediately wanted to get in for a closer look,” Peel Mining managing director Rob Tyson told The Resources Roadhouse.

“Our first stop was a program of preliminary field reconnaissance we undertook on the EL6695 Wagga Tank tenement.

“Two rock chip samples were taken from the Wagga Tank and Siegal’s Shaft prospects located on the licence, with both returning very encouraging, highly anomalous values.”

Results from the sampling returned:

At Siegal’s Shaft
PRT01
0.69 per cent lead, 0.31 per cent zinc, 16g/t silver, 2.01g/t gold; and

PRT02
0.31 per cent lead, 0.93g/t gold;

At Wagga Tank 
PRT03
0.26 per cent copper, 2.97 per cent lead, 0.2 per cent zinc; and

PRT04
0.29 per cent copper, 1.45 per cent lead, 0.30 per cent zinc. 

“Our initial review of data at Wagga Tank has indicated the mineralised system remains open along strike and at depth,” Tyson said.

“It also showed the Siegal’s Shaft/MD2 prospect area, defined by historic workings, coincident geochemical and geophysical anomalies including a strong positive magnetic anomaly, to be insufficiently tested.

“We noted that the historic drilling predominantly focused on following-up surface geochemical anomalism and associated IP anomalies.

“But we were encouraged by the holes drilled on the margin of the magnetic anomaly, which encountered substantial intercepts of disseminated and massive sulphide mineralisation.”

The better intercepts from this drilling included:

MMGMD2001
9m at 31.7g/t silver, 0.24g/t gold, 0.41 per cent copper, 0.76 per cent lead, 1.44 per cent zinc from 108m, including 1m at 83.8g/t silver, 0.5g/t gold, 0.98 per cent copper, 2.09 per cent lead, 4.58 per cent zinc from 115m;

SD1
1m at 65g/t silver, 0.8 per cent copper, 3.4 per cent lead, 4.44 per cent zinc from 70m; and

SP1
6m at 55.2g/t silver, 0.73g/t gold, 1.11 per cent copper, 1.3 per cent lead, 3.41 per cent zinc from 55m.

“We’re excited by the potential of Wagga Tank,” Tyson said.

“We have RC drilling programs proposed to commence at both prospects during the September quarter.”

Drilling is something Peel Mining does well, which it has continued to demonstrate at its Wirlong discovery.

Phase 3 drilling at Wirlong, funded by JOGMEC, through an earn-in agreement, in April completed eight drillholes, comprising a combination of RC drillholes and RC precollar with diamond tail drillholes designed to test along strike and up-dip from previous drilling.

All follow-up drillholes intersected copper mineralisation, extending the known mineralisation at the deposit, which remains open in all directions.

Results from the Phase 3 drilling at Wirlong include:

WLRCDD024
121m at 0.73 per cent copper, 3g/t silver from 207m, including 26m at 1.21 per cent copper, 5g/t silver from 227m, 5m at 1.14 per cent copper, 3g/t silver from 260m, 2m at 1.24 per cent copper, 5g/t silver from 278m, 10m at 1.01 per cent copper, 4g/t silver from 288m;

1m at 4.81 per cent copper, 10g/t silver from 556m;

1m at 3.91 per cent copper, 11g/t silver from 617m; and

4m at 1.10 per cent copper, 3g/t silver from 723m.

WLRC026
2m at 3.8 per cent copper, 11g/t silver from 36m;

5m at 0.63 per cent copper, 2g/t silver from 71m; and

46m at 0.51 per cent copper, 2g/t silver from 229m, including 9m at 1.27 per cent copper, 4g/t silver from 255m.

WLRCDD027
16m at 0.56 per cent copper, 4g/t silver from 57m; and

10m at 0.74 per cent copper, 5g/t silver from105m

WLRCDD028
90m at 0.68 per cent copper, 3g/t silver from 412m, including 9m at 1.29 per cent copper, 7g/t silver from 412m, 19m at 1.36 per cent copper, 6g/t silver from 432m; and

1m at 6.96 per cent zinc, 0.58 per cent Pb, 6g/t silver from 546m.

“We have now defined significant copper mineralisation at Wirlong over at least 200 metres strike, and from near surface to more than 500 metres below surface,” Tyson said.

“Mineralisation remains open up and down dip and along strike.

“Our initial interpretation of these latest results suggests a possible easterly offset to the mineral system to the north, as evidenced by highly anomalous copper mineralisation returned from the upper part of WLRCDD027.”

Peel has flagged future activity at Wirlong will focus on extending the known mineralisation while targeting potential higher grade structures at the deposit as well as downhole electromagnetic surveying.

The company recently recommenced drilling at its Mallee Bull project with the stated intention of searching for new mineralisation.

The latest program will be testing EM conductors to the north of Mallee Bull, targeting potential shallow mineralisation (hopefully a repeat, or extension to the T1 deposit), and to test the T3 remanent magnetic anomaly southeast of Mallee Bull.

As the first of its major discoveries Mallee Bull is something of a sentimental favourite of Peel Mining.

Its mineralisation strongly displays features of the ‘Cobar-style’ deposit attributes of short strike length, moderate widths and extensive vertical continuity, with the deepest mineralised drillhole intercept at more than 800m below surface.

Peel established a maiden resource estimate for Mallee Bull in May 2014, in accordance with the JORC Code (2012), comprising 3.9 million tonnes at 2.3 per cent copper, 32g/t silver and 0.3g/t gold for 90,000 tonnes of contained copper, 4 million ounces contained silver and 43,000 ounces contained gold (at a 1% copper equivalent cut-off).

The Cobar Superbasin project includes the Wirlong prospect and is subject to a Memorandum of Agreement with Japan Oil, Gas, and Metals National Corporation (JOGMEC).

JOGMEC can earn 50 per cent interest by funding up to $7 million of exploration, over a period of five years.

Peel Mining Ltd. (ASX: PEX)
… The Short Story

HEAD OFFICE
Unit 1
34 Kings Park Road
West Perth WA 6005

Ph: (08) 9382 3955

Email: info@peelmining.com.au
Web: www.peelmining.com.au

DIRECTORS
Rob Tyson, Simon Hadfield, Graham Hardie

MAJOR SHAREHOLDERS
Hampton Hill Mining NL and associates: 17.15% (Josh Pitt and Neil Tompkinson)
Point Nominees Pty Ltd: 11.64%
William Hodgson and Associated Companies: 10.5%
Rob Tyson: 5.3%