Peel delivers Mallee Bull Resource

THE DRILL SERGEANT: Peel Mining (ASX: PEX) and its 50 per cent Joint Venture partner CBH Resources have released the maiden Mineral Resource estimate for the Mallee Bull copper-silver-gold deposit.

The estimate has returned a high-grade result with approximately 90,000 tonnes of contained copper, 4 million ounces contained silver and 43,000 ounces contained gold (at a one per cent copper equivalent cutoff).

The 2012 JORC Code-compliant Mineral Resource estimate comprises:

3.9 million tonnes at 2.3 per cent copper, 32 grams per tonne silver and 0.3 g/t gold.

 

Mallee Bull Mineral Resource estimate based on one per cent copper equivalent (CuEq) cutoff grade. Source: Company announcement

 

Peel said approximately 16 per cent of the Mallee Bull resource is in the Indicated Mineral Resource category.

The Mineral Resource estimate will form the basis of an in-house scoping study which will commence shortly.

“Mallee Bull is one of the highest grade copper discoveries in Australia in recent times and putting a Resource to it is an important milestone,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“In that regard, I’d like to thank our project team on a job well done.

“It would be highly unusual if Mallee Bull were to occur in isolation, and so the search for ‘another’ Mallee Bull, along with a scoping study, will continue as part of the next stage of investigation.”

Peel explained the Mineral Resource estimates include copper equivalent grades incorporating copper, silver and gold values.

The copper equivalent grades are based on copper, silver and gold prices of $7000 per tonne, $20 per ounce and $1300 per ounce with overall recoveries of 95 per cent 90 per cent and 66 per cent respectively.

These estimates are based on Peel’s interpretation of potential commodity prices and the company’s interpretation of first pass metallurgical test work performed on Mallee Bull diamond core using the following formula: copper equivalent (%) = copper (%) + 0.009 x silver (g/t) + 0.415 x gold (g/t).

Peel said it is of the opinion all elements included in the metal equivalent calculation have a reasonable potential to be recovered and sold.

Additional test work is required to demonstrate the deposit’s potential metallurgical recoveries for cobalt, lead and zinc.

Email: info@peelmining.com.au

Website: www.peelmining.com.au