What the Brokers Say
WHAT THE BROKERS SAY: Interesting news and views from across the Resource Analyst universe.
Peel Mining (ASX: PEX)
Peel Mining is an exploration company focused on projects located within Australia and New Zealand.
The most advanced project is Gilgunnia (PEX 50 per cent, CBH Resources earning 50 per cent) which is located within the Cobar Superbasin in central New South Wales.
The project encompasses two licences areas; ML 1361 which hosts the historic May Day polymetallic deposit and EL7461 which hosts the ‘Mallee Bull’ polymetallic deposit and the ‘4-Mile’ goldfield (comprising approx. 60 historic shafts).
At Mallee Bull, recent drilling has intersected multiple broad widths of high grade mineralisation including 84 metres at 4.42 per cent copper, 38 grams per tonne silver, 0.14g/t gold.
The orebody is interpreted to be open in multiple directions with ongoing exploration set to test possible extensions of the known mineralisation whilst also targeting the immediate area for potential new discoveries.
Peel also has a 100 per cent interest in approx. 3,000 square kilometres of exploration tenements within the Cobar Superbasin.
Two early stage prospects; Mundoe and Sandy Creek, exhibit similar geochemical and geophysical characteristics to Mallee Bull when it was at the same stage of exploration.
Polymetallic mineralisation has already been intercepted at both prospects with follow up drilling campaigns planned for the near future.
Peel Mining also has a strong pipeline of exploration projects prospective for silver, tungsten and gold, all at various stages of advancement, bringing welcome diversity to the portfolio.
The Cobar Superbasin project encompasses approx. 3,000sqkm of highly-prospective tenure and hosts numerous early stage and developed prospects.
The most advanced is the Mallee Bull prospect which is a shear hosted, steeply dipping ‘shoot like’ polymetallic deposit where recent drilling has intercepted some impressive results including 84m at 4.42 per cent copper (including 26m at 11.39 per cent copper) and 53m at 4.08 per cent copper.
Encouragingly, the grade of the mineralisation appears to be increasing at depth as well as still being open in multiple directions.
The Mallee Bull prospect is located within EL 7461 and together with the historic ML 1361 form the Gilgunnia project.
In May 2012, Peel entered into a staged farm-in agreement with CBH Resources where by CBH could earn up to a 50 per cent interest in Gilgunnia by spending a total of $8.33 million.
CBH has spent $5 million to date and recently agreed to spend a further $3.33 million (over the next 12 months) to move to a 50 per cent interest.
The CBH cash injection will provide the necessary funds to continue exploration around the Mallee Bull deposit.
Ore bodies of this nature are often ‘stacked’ and as such, Peel (and CBH) aim to concentrate exploration (geophysics/geochemical/RAB drilling) within the immediate area of the deposit.
Peel will also continue the testing of a large and highly prospective ‘off-hole’ EM anomaly identified at Butchers Dog (approx. 1km north of Mallee Bull).
Disclaimer: The above is intended as a guide only. The Roadhouse accepts no responsibility for investments made from this advice, successful or otherwise.