Peel Mining Identifies New Southern Nights Mineralised Zone

THE DRILL SERGEANT: Peel Mining (ASX: PEX) claimed discovery of a new high-grade zone to the south of the Southern Nights deposit at the company’s 100 per cent-owned Wagga Tank-Southern Nights project, located south of Cobar in western New South Wales.

Peel Mining reported the discovery was made during an ongoing resource upgrade drilling program underway at Wagga Tank-Southern that had been primarily designed to develop higher confidence resources and to progress the project towards development.

The company said the new high-grade zone was encountered around 500 metres south of the high-grade Southern Nights Central Zone in an area that has been subjected to limited drilling, near the boundary of the existing resource model.

Drillholes WTRCDD229 and WTRCDDD238 intercepted healthy zones of very high-grade zinc and lead mineralisation, which the company said were similar to the intercepts returned from the Southern Nights Central Zone.

“The new high-grade intercepts at the southern edge of Southern Nights continue to underline the incredible quality and scale of these mineral systems,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“The latest intercepts are on the edge of the current resource model offering excellent exploration upside.

“Most importantly, this mineralisation adds further weight to the future development prospects of the project, highlighting the opportunity to increase the grade and tonnage profile of the deposit.”

Elsewhere at Southern Nights, Peel received results from several drillholes targeting infill and extensions at the northern end of the Southern Nights Central Zone.

WTRCDD186 returned several zones of mineralisation including:

10.66 metres at 4.27 per cent zinc, 1.32 per cent lead, 242 grams per tonne silver, 0.24g/t gold from 390.11m, including 5.22m at 7.39 per cent zinc, 2.25 per cent lead, 454g/t silver, 0.44g/t gold from 390.11m.

WTRCDD221 also returned several zones of mineralisation including:

6.6m at 4.37 per cent zinc, 2.02 per cent lead, 26g/t silver and 0.13g/t gold from 367.9m; and
6.04m at 3.89 per cent zinc, 0.23 per cent lead, 0.21 per cent copper, 10g/t silver and 0.46g/t gold from 381.46m.

Drilling at Wagga Tank was carried out to test for north-south extensions to the existing resource, shallower up-dip extensions to the resource, and also to provide infill drilling to improve the confidence of the resource.

The company said results it has received to date generally confirm the grade and continuity of mineralisation, and the modelled geometry of the deposit.

WTRCDD214 returned several zones of mineralisation including:

18.6m at 1.1 per cent copper, 0.32g/t gold from 124.4m, including 9m at 1.7 per cent copper, 0.39g/t gold from 134m; and
2m at 4.44g/t gold, 0.85 per cent copper, 20g/t silver from 275m.