St Barbara Stake Strengthens Peel Mining’s Cobar Basin Resolve

THE INSIDE STORY: Peel Mining’s belief in the Cobar Basin region of New South Wales was further validated recently by an equity investment from established ASX-listed gold producer and explorer St Barbara Limited (ASX: SBM).

Peel Mining welcomed St Barbara to its share register after the latter subscribed for $3.28 million worth shares at, what was at the time, a healthy premium subscription price of 20.5 cents per share giving St Barbara an approximate 9.5 per cent stake in the company.

“Attracting a company of the calibre of St Barbara to the share register is additional validation of the belief we have placed in the mineral potential of Cobar Basin since we first began exploring in the region back in 2010,” Peel Mining managing director Rob Tyson told The Resources Roadhouse.

“Obviously, the funding from the deal is good for the company as it means we are now well-funded to continue our exploration programs at Mallee Bull, Wagga Tank, and a number of other high priority prospects.”

“The extra bonus will be the depth of knowledge we will be able to draw on by tapping into St Barbara’s extensive experience in deep, underground mining at Gwalia.

“We believe that technical expertise is highly applicable to Cobar-style deposits, which typically show strong vertical continuity.”

Peel Mining is NSW’s predominant greenfield’s explorer having established the largest single-company tenure holding in the Cobar Superbasin on its way to discovering and defining several important base and precious metal-rich deposits.

These include the high-grade Mallee Bull copper-polymetallic resource and the company’s Wagga Tank gold-polymetallic and Wirlong copper discoveries.

Peel intends putting the new funds to work accelerating its upcoming Cobar Basin work programs, which includes further drilling at the 100 per cent-owned Wagga Tank VMS prospect, scheduled to recommence in April.

Results from the maiden drilling program undertaken at Wagga Tank revealed highly encouraging intercepts, which Peel interpreted to demonstrate the presence of additional high-grade base and precious metal mineralisation.

The program completed 18 drillholes with at least seven drillholes requiring extensions, producing highlights of:
 
WTRC003
27 metres at 10 per cent zinc, 6.41 per cent lead, 89 grams per tonne silver, 0.42g/t gold, 0.21 per cent copper from 240m (end of hole), including 10m at 19.39 per cent zinc, 12.35 per cent lead, 171g/t silver, 0.67g/t gold, 0.30 per cent copper from 253m; and

WTRC017
16m at 3.27g/t gold, 0.35 per cent copper, 1.1 per cent zinc, 0.57 per cent lead, 12g/t silver from 226m, including 10m at 4.27g/t gold, 0.37 per cent copper, 0.88 per cent zinc, 0.52 per cent lead, 13g/t silver from 228m, and;

13m at 3.34g/t gold, 0.83 per cent copper, 0.77 per cent zinc, 0.28 per cent lead, 20g/t silver from 299m, including 6m at 6.9g/t gold, 1.28 per cent copper, 0.62 per cent zinc, 0.21 per cent lead, 29g/t silver from 300m.

“Now that we have these funds we can get back out to Wagga Tank sooner than we expected,” Tyson said.

“Once the rig that is currently drilling a deep hole at Wirlong has finished, we will mobilise it to Wagga Tank to complete the drill program we started prior to Christmas.

“The program will likely include follow up drilling of several strong gold-copper intersections that we previously reported that could possibly represent a previously unrecognised feeder structure to the historically reported oxide gold mineralisation.”

Drilling has also been continuing at the JOGMEC-funded Wirlong copper discovery.

The program recently produced the best copper intercept Peel has reported to date at the 60 per cent-owned Wirlong prospect.

The intercept of 17m at 4.59 per cent copper and 8 grams per tonne silver from 738m, achieved in drillhole WLRRCDD043, extended the down-dip continuity of strong copper mineralisation at Wirlong to approximately 600m below surface.

“Significantly, a substantial ‘offhole’ downhole electromagnetic geophysical anomaly centred north of WLRCDD043 points to possible extensions to substantial copper mineralisation,” Tyson said.

“Our ultimate goal is to build a camp of deposits in the Cobar Basin, and Wagga Tank and Wirlong have added new strings to our bow.

“However, Mallee Bull remains our core asset where drilling has recommenced at the T1 prospect targeting very high-grade zinc-lead-silver mineralisation for metallurgical testwork purposes.”

Peel Mining Ltd. (ASX: PEX)
… The Short Story

HEAD OFFICE
Unit 1
34 Kings Park Road
West Perth WA 6005

Ph: (08) 9382 3955

Email: info@peelmining.com.au
Web: www.peelmining.com.au

DIRECTORS
Rob Tyson, Simon Hadfield, Graham Hardie