THE DRILL SERGEANT: Peel Mining (ASX: PEX) and CBH Resources have agreed to seek regulatory approval to establish an exploration decline at their Mallee Bull 50:50 Joint Venture project, located near Cobar in western New South Wales.
Peel Mining indicated the decline is to enable definition drilling and exploration from underground of the deeper portions of the deposit, and to obtain a bulk sample of the Silver Ray zinc-lead-silver lens for processing at CBH’s Endeavor Mine.
Following completion of development studies into the project’s advancement, an exploration decline has been deemed by the JV partners as a low risk path to unlock the value of the multitude of high-grade base metals-rich drill intercepts recorded at Mallee Bull where deep drilling has highlighted the project’s economic potential.
Should the underground exploration prove fruitful, the JV intends seeking approval for conversion to a full mining operation.
Regulatory approval for the exploration decline is anticipated to take between six to 12 months and is being sought via a Review of Environmental Factors (REF) which is being submitted to the NSW Department of Planning and Environment – Resources Regulator.
“The advancement of Mallee Bull via an exploration decline is a logical, low-risk way to unlock the project’s obvious economic potential and we are extremely pleased to see the project moving forward,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.
“Given the exceptional grades of copper mineralisation at depth, and the nature of the deposits in the Cobar Basin, Peel and CBH have formed the view that there is strong potential for a significantly economic operation to exist at Mallee Bull.
“Mallee Bull is a Cobar-style deposit and is viewed by the JV as a CSA-mine analogue.
“It is worth noting that CSA is amongst the highest-grade copper mines in the world and is operating at more than 1,700 metres below surface.”