THE BOURSE WHISPERER: New Zealand-focused exploration play Peel Mining has been awarded two exploration licences covering the Rise and Shine gold project, located about 20 kilometres northeast of Cromwell in Central Otago.
The Rise and Shine gold project hosts a number of historic gold workings with historic production estimated at more than 180,000 ounces gold.
Rise and Shine gold project location. Source: Company announcement
The first of the two licences, EP 53111, was the subject of a competitive permit allocation process carried out by New Zealand Petroleum and Minerals initiated in late 2010.
The EP encompasses the Rise and Shine Shear Zone and the Cromwell Lode, situated within the historic Bendigo goldfield.
The second licence, EP 53088, surrounds EP 53111 and encompasses the strike extensions of the Rise and Shine Shear Zone, its inferred up-dip and down-dip extensions and other lodes lie within the Bendigo Goldfield.
According to Peel Mining gold mineralisation within the Rise and Shine Shear Zone is known to be associated with multiple lode and alluvial gold workings occurring over a strike length of at least four kilometres.
The historic Bendigo Goldfield comprises a series of sub-vertical lodes with workings up to 130 metres below surface.
Peel claims the Rise and Shine Shear Zone appears to be structurally similar to the Hyde Macraes Shear Zone, which hosts the multi-million ounce Macraes gold mine as well as being located in a similar position in the Otago Schist.
The project has already been subjected to a healthy amount of historic exploration; however, the majority of this work has been directed at historic workings sited at the base of the Rise and Shine Creek Valley.
Peel said it is of the belief that the Rise and Shine Shear Zone could possibly be “flatter” than previously assumed offering potential for large-tonnage, low-grade grade gold deposits extending up-dip from previously defined mineralisation.
To that end, Peel plans to complete a program of RC drilling aimed at testing this model.
“Peel was attracted to Rise and Shine because of its apparent similarities to Macraes and its large-scale potential if the Rise and Shine Shear Zone is flatter-lying than previously interpreted,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.
“It is a simple exploration model to test, offering Peel a potentially low-risk, high-return exploration scenario.”