THE DRILL SERGEANT: Peel Mining (ASX: PEX) released an updated Indicated & Inferred Mineral Resource Estimate (MRE) for the company’s 100 per cent-owned Wagga Tank and Southern Nights deposits located in the Cobar Basin of western New South Wales.
The company explained the MRE is reported within mineable shapes generated at $80 per tonne net smelter return (NSR) with a minimum mining width of three metres and includes internal dilution.
Peel Mining reported an Indicated and Inferred MRE of:
4.95 million tonnes at 5 per cent zinc, 2 per cent lead, 78 grams per tonne silver, 0.3 per cent copper, and 0.4g/t gold within $80/t NSR mineable shapes.
This represent a 31.5 per cent increase in Indicated and Inferred resource tonnage from the company’s previous MRE.
Of note, the Indicated MRE increased to 2.95 million tonnes at 5.73 per cent zinc, 2.33 per cent lead, 86g/t silver, 0.23 per cent copper, 0.36g/t gold (within $80/t NSR mineable shapes).
This represents a 161 per cent increase in Indicated resource tonnage from the previous MRE.
Peel Mining said the updated MRE provides a solid foundation, from which it can immediately commence scoping studies to advance the potential development scenarios at Wagga Tank-Southern Nights.
The company already has associated activities underway, including ongoing metallurgical testwork, geological/structural studies, pre-development environmental baseline work, and drill planning targeting potential extensions to mineralisation.
Also worth noting, is that the Wagga Tank-Southern Nights mineral system remains open along strike and down dip.
“This resource upgrade is another important step for Peel as it continues towards unlocking the next mine development opportunity within the Cobar Basin,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.
“The advancement of the Southern Nights-Wagga Tank mineral resource utilising contemporary metal pricing, marketing and metallurgical assumptions, presented as a Net Smelter Return, as well as underground mining assumptions is an important move towards our goal.
“Encouragingly, the resource quality has improved significantly with nearly three million tonnes reporting to the Indicated classification.
“We will now move to scope out the project to better understand the potential development opportunities available.”