THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported completion of a maiden Inferred Mineral Resource Estimate (MRE) for the May Day deposit, located south of Cobar in western New South Wales.
The maiden Inferred Mineral Resource Estimate for the May Day deposit has come in at:
1.128 million tonnes at 1.3 grams per tonne gold, 19g/t silver, 0.82 per cent zinc, 0.61 per cent lead, 0.11 per cent copper for 46,400 ounces gold, 676,000 ounces silver, 9,260 tonnes zinc, 6,860 tonnes lead, and 1,240 tonnes copper.
The May Day deposit is contained within ML1361 and is part of the Mallee Bull project, which is currently the subject of a purchase and sale agreement between Peel and CBH Resources Limited.
Settlement of the transaction is subject to Ministerial consent for the transfer of title and is expected in the near term.
“The May Day MRE brings modest but important near-surface gold metal exposure to our asset base and is another important step for the company as we continue towards building critical mass for the South Cobar Basin Hub and Spoke project,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.
“The drill-out now underway is designed to deliver a high quality MRE composed primarily of Indicated classified resources within an optimal pit, and we look forward to releasing drill assays over the weeks ahead in advance of updating the MRE around year end.
“Mineralisation at May Day bears similarities to other Cobar-style gold-rich deposits such as Hera and Peak, and importantly, remains completely open down dip and along strike – we look forward to investigating its greater potential in due course.”