Peel Mining (ASX: PEX) is recalibrating its project rankings following the discovery of the Southern Nights deposit within the company’s Cobar Basin projects in New South Wales.
Peel Mining’s focus has been development of the Mallee Bull and Wirlong copper and base metals discoveries.
Mallee Bull is a 50:50 Joint Venture with CBH Resources hosting a JORC 2012-compliant Mineral Resource of 6.76 million tonnes at 1.8 per cent copper, 31 grams per tonne silver, 0.4g/t gold, 0.6 per cent lead and 0.6 per cent zinc for approximately 119,000 tonnes of copper, 6.6 million ounces silver, 83,000 ounces gold, 38,000t lead and 38,000t zinc.
Recent drilling at Mallee Bull focused on the high-grade near-surface zinc-lead-silver-gold Silver Ray lens to define mineralisation limits and provide material for ongoing metallurgical testwork and geotechnical review.
A feasibility study is investigating the conceptual development of the Silver Ray lens as a dig and truck operation, under which ore would be milled at CBH’s Endeavor mine approximately 150km away.
The Wirlong prospect is part of the Cobar Superbasin project, under a Memorandum of Agreement with Japan Oil, Gas, and Metals National Corporation (JOGMEC).
Wirlong is a large hydrothermal system hosting high-grade copper mineralisation along a 2.5km strike length to depths of up to 950m, bearing the hallmarks of a Cobar-style deposit.
Recent drilling defined and extended the known mineralised system at Wirlong with assay results confirming exceptional copper-silver drill intercepts, including:
27 metres at 5.3 per cent copper, 23g/t silver from 286m.
The company believes the results highlight the structurally dislocated nature of the Wirlong copper system, which it considers to likely be a series of stacked, short-strike length, shoot-like structures characteristic of Cobar-style deposits.
The true width of mineralisation remains unknown, but Peel has estimated it to be 60 to 80 per cent of downhole widths based on the likelihood of mineralisation being sub-vertical in nature.
Wagga Tank is located approximately 130 kilometres south of Cobar on the western edge of the Cobar Superbasin.
Mineralisation at Wagga Tank comprises a near surface oxide gold zone, a possible supergene-enriched copper-gold-silver zone, and a primary zinc-lead-silver -rich massive sulphide zone starting at the base of oxidation at around 120m below surface.
Peel carried out a second drilling program in June 2017 at the main Wagga Tank deposit testing for north-easterly strike extensions to mineralisation encountered by the first stage of drilling.
This intersected a substantial zone of semi-massive/breccia quartz-sulphide mineralisation.
6m at 8.52 per cent zinc, 2.97 per cent lead and 12g/t silver from 282m.
This mineralised zone was reinforced with intercepts from another two holes drilled on up and down dip of WTRCDD020.
WTRCDD023 returned a zone of semi-massive/breccia quartz-sulphide mineralisation grading:
11m at 7.15 per cent zinc and 2.31 per cent lead, 58g/t silver from 396m, approximately 80m down-dip of the intercept in WTRCDD020.
This intercept was the deepest mineralised intercept Peel had achieved at Wagga Tank and currently remains open at depth and along strike.
Hole WTRCDD024 confirmed the up-dip continuation of zinc-lead-silver rich mineralisation returning:
16m at 1.46 per cent lead, 0.54 per cent zinc, 7.6g/t silver from 158m
22m at 1.06 per cent lead, 0.95 per cent zinc, 5.3g/t silver from 183m, and
10m at 1.22 per cent zinc, 0.73 per cent lead, 11.4g/t silver from 240m.
The zinc-rich Southern Nights discovery is located approximately one kilometre south of the high-grade (zinc-lead-silver-gold-copper) Wagga Tank deposit.
Drilling from in October 2017 confirmed Southern Nights as hosting Wagga Tank-style mineralisation with drillholes WTRC035 and WTRC033 returning assays of very high-grade zinc-lead-silver rich sulphides including massive sulphides.
21m at 31.02 per cent zinc, 12.05 per cent lead, 258g/t silver, 1.43g/t gold from 194m; and
46m at 17.01 per cent zinc, 9.57 per cent lead, 272g/t silver, 1.22g/t gold from 201m.
“Mallee Bull is our most advanced project in terms of exploration, however, Southern Nights is rapidly becoming our number one project ranking,” Peel Mining managing director Rob Tyson told The Resources Roadhouse.
“The discovery at Southern Nights can be attributed to the fact we have now spent eight years in the Cobar Basin.
“During that time, we have had an almost permanent presence there, which has allowed us to learn a great deal about the area.”
Peel Mining sprang in to action following the Christmas/New Year break, eager to commence field activities at Southern Nights, including two double shift diamond drilling rigs in operation.
Peel has begun planning for a systematic resource drill-out of the Southern Nights area along with first pass metallurgical testwork.
The company has interpreted the Southern Nights results to indicate it being a sub-vertical mineralised system, with a likely steep (70 to 80 degrees) westerly dip, implying true widths of between approximately 30 to 50 per cent of the downhole intervals it has encountered for all west-oriented drillholes, and between 70 to 90 per cent for east-oriented.
The company also considers Southern Nights to be a very large mineralised system that could be an extension of the Wagga Tank deposit.
“Our technical team has been with the company pretty much since we began exploring in the Cobar Basin, which has contributed to building our knowledge bank of the ground we have been exploring over that time,” Tyson said.
“That consistency has been a great contributor to the Southern Nights discovery.
“There are enough indicators to suggest that Wagga Tank and Southern Nights are part of the same large mineralised system.
“To date we have identified over two kilometres of strike with indications from recent RAB drilling that we could extend that out to over three kilometres.”
Peel Mining is currently undertaking RC and diamond drilling at the Wagga Tank/Southern Nights project, which is including two other prospects Fenceline and The Bird.
The program is to consist up to 15,000m of RC/diamond drilling and up to 10,000m of RAB drilling over the coming months and has been designed for:
Resource estimation purposes;
To continue to test for strike and dip extensions; and
To test other targets in the general Wagga Tank area.
Additional airborne and surface geophysical surveys are also planned to assist with targeting along with first-pass metallurgical testwork.
“We have drilled enough high-grade results at Southern Nights now that tells us we have a few hundred metres of strike, minimum, that possibly could end up being much bigger than that,” Tyson said.
“So, we are really focusing in on that area and starting to head towards resource drilling to define the geometry and grade of that system.
“We want to be in the position of being able to say – this is what Southern Nights looks like – but, at this stage I get the feeling it will remain a moving feast for the time to come.
“It is open in all directions and is definitely stacking up as being a big system.
“Our original aim of conducting all this Cobar Basin exploration was to build a camp of deposits in the one jurisdiction.
“I think we’re really on our way to that now.”
Peel Mining Ltd. (ASX: PEX)
… The Short Story
34 Kings Park Road
West Perth WA 6005
Ph: (08) 9382 3955
Rob Tyson, Simon Hadfield, Graham Hardie