THE BOURSE WHISPERER: Peel Mining (ASX: PEX) informed the market it received written notice from Japan Oil, Gas and Metals National Corporation (JOGMEC) of its decision to withdraw from the Cobar Superbasin project (CSP) in New South Wales.
The Cobar Superbasin project contains a number of prospects with a good deal of potential, including the Wirlong copper deposit where high-grade copper mineralisation has been defined.
JOGMEC’s withdrawal will see Peel move to 100 per cent control and consolidation of its Cobar Basin tenure which includes:
Mallee Bull copper-silver-gold-zinc-lead deposit;
May Day gold-silver-zinc-lead-copper deposit;
Wagga Tank and Southern Nights zinc-lead-silver-gold-copper deposits; and
Wirlong copper-silver deposit.
The Joint Venture between the two entities had lasted six years, during which time JOGMEC had provided substantial funding towards exploration, resulting in the discovery of the Wirlong copper deposit and the advancement of multiple other targets within the CSP.
As a result of the termination, JOGMEC’s rights and interests in Wirlong and associated CSP tenure will be transferred to Peel at no cost, resulting in Peel regaining 100 per cent-ownership.
“On behalf of Peel, I would like to thank JOGMEC for their invaluable contribution to the Cobar Superbasin project over the past six years – we have thoroughly enjoyed our collaborative relationship,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.
“Wirlong was uncovered in 2016, through systematic exploration under the JOGMEC Joint Venture, and has since advanced into a significant copper discovery with mineralisation extending from near surface to more than 600 metres below surface.
“It is our intention, in due course, to undertake a resource drillout at Wirlong in order to establish a maiden mineral resource estimate.
“The consolidation of CSP tenure, and particularly the Wirlong copper deposit, significantly advances Peel’s business plan delivering 100 per cent control of Peel’s entire Cobar Basin tenure, whilst significantly increasing the company’s exposure to copper, and expanding the company’s asset base in its objective to achieve critical mass to support a standalone processing plant.”
TO READ THE ANNOUNCEMENT IN FULL: CLICK HERE