Peel Mining Hits Strong Mallee Bull Infill Results

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported infill drilling results from the company’s 50 per cent-owned Mallee Bull deposit, located near Cobar in western New South Wales.

Peel Mining explained the drilling was undertaken as part of a Pre-Feasibility Study (PFS) investigating the conceptual development of the upper portion of Mallee Bull as a dig and truck operation, under which ore would be milled at JV partner CBH’s Endeavor mine located approximately 150 kilometres away, where surplus milling capacity exists.

The drilling consisted 16 drillholes and was designed to infill to a maximum of 30-metre spacing between drill intercepts in a zone of interest between 180m and 300m below surface, allowing for an update to the resource model (in this area) to an indicated mineral resource estimate.

The drilling also provided additional geotechnical information, and material for further metallurgical testwork.

Peel said its initial interpretation of drilling results indicates that the area of interest shows continuity of the Mallee Bull lode (stringer/breccia style) mineralisation.

Strong polymetallic mineralisation was intercepted in most drillholes with better assays including:

11m at 9.02 per cent copper, 114 grams per tonne silver, 0.37g/t gold from 296m;

14.15m at 4.27 per cent copper, 51g/t silver, 0.25g/t gold from 262m;

16m at 2.19 per cent copper, 49g/t silver, 0.38g/t gold from 237m including 9m at 2.69 per cent copper, 67g/t silver, 0.43g/t gold from 242m;

18m at 1.53 per cent copper, 24g/t silver, 0.38g/t gold from 234m including 4.86m at 3.53 per cent copper, 34g/t silver, 0.64g/t gold from 234.86m;

5m at 11.09 per cent zinc, 5.48 per cent lead, 32g/t silver, 0.14g/t gold from 305m;

13m at 1.76 per cent copper, 9g/t silver, 0.05g/t gold from 281m including 4m at 2.9 per cent copper, 12g/t silver, 0.06g/t gold from 288m;

Peel said the PFS is being based around underground mining of the high-grade Silver Ray zinc-lead-silver lens, followed by the development of an exploration decline to around 300m below surface to enable the underground drilling of the Mallee Bull lode copper mineralisation.

Mineralisation between 180m and 300m below surface is to be assessed for its potential to add further ore to the mineral inventory.

“Recently received assays are currently being interpreted and wireframed in anticipation of updating the relevant portion of the mineral resource model,” Pell Mining said in its ASX announcement.

“Once completed, the new mineral resource model will be the subject of mine design/scheduling to enable completion of the PFS which is expected during the current quarter.”