THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported the discovery of strong gold mineralisation associated with a new high-grade zone at the southern end of the Southern Nights deposit from the recent resource upgrade drilling program at the company’s 100 per cent-owned Wagga Tank-Southern Nights project, located south of Cobar in western New South Wales.
Peel mining completed a drilling program in 2019 that was designed to develop a higher confidence Mineral Resource Estimate at Wagga Tank-Southern Nights.
The drilling was targeted towards the Wagga Tank, Southern Nights and the Corridor Zone located between Wagga Tank and Southern Nights.
This returned strong assay results, including some of the highest-grade gold mineralisation the company has intersected at Southern Nights to date:
35 metres at 6.3 per cent zinc, 2.59 per cent lead, 105 grams per tonne silver, 0.24 per cent copper, 1.87g/t gold from 232m, including 5.9m at 17.13 per cent zinc, 8.34 per cent lead, 376 g/t silver, 0.26 per cent copper, 7.6 g/t gold from 232.8m; and
7m at 13.3 per cent zinc, 4.4 per cent lead, 97 g/t silver, 0.1 per cent copper 0.89 g/t gold from 251m.
Peel Mining completed a review of these and other infill results, from which it determined that adequate drilling has now been completed to commence Mineral Resource Estimation work with an upgraded resource anticipated for March quarter 2020.
This resource will form the basis for further concept study work to progress the project towards development.
“The high-grade gold associated with the mineralisation in drillhole WTRCDD238 is a very welcome development for the Southern Nights system, all the more exciting as this area remains completely open to the south,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.
“More importantly, a recent review of resource upgrade drilling indicates good infill and extensional coverage has been established, supporting an update of the Mineral Resource Estimate.
“We look forward to providing an updated resource this quarter.”