THE DRILL SERGEANT: Peel Mining (ASX: PEX) has resumed drilling at the company’s 100 per cent-owned Wagga Tank-Southern Nights project, south of Cobar in western New South Wales.
Peel Mining has two multi-purpose (RC/diamond) drill rigs on site to commence drilling.
The company recently declared a maiden Indicated and Inferred Mineral Resource Estimate (MRE) for Wagga Tank-Southern Nights of 3.8 million tonnes at 5.5 per cent zinc, 2.1 per cent lead, 75 grams per tonne silver, 0.27 per cent copper and 0.31g/t gold for 9.2 per cent zinc equivalent.
Peel explained the drilling program will comprise approximately 10,000m of RC and diamond drilling and is designed to continue to progress the Wagga Tank-Southern Nights project towards development.
“Drilling will primarily target higher grade areas of Inferred Resource with the aim of increasing confidence in these areas by converting further mineralisation to Indicated Resource classification,” Peel Mining said in its ASX announcement.
The drilling will focus initially on Wagga Tank consisting infill drilling combined with drilling to confirm historical high-grade intercepts that the company considers presents a good opportunity to rapidly improve the scale and quality of the Wagga Tank Mineral Resource.
Further infill drilling at Southern Nights will target higher-grade Inferred Resources to continue to improve resource confidence along with step out drilling along strike and downdip of the main resource area, testing for extensions to grow the overall resource base.
“On completion of drilling, an updated Mineral Resource Estimate will be undertaken which will then form the basis of a formal Scoping Study,” Peel said.
“In the meantime, an internal Scoping Study, which is now underway, will be completed to aid with the formal study process.”