Peel Mining Hits Further May Day Intercepts

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported further results from ongoing drilling att he company’s South Cobar project in western New South Wales.

Peel Mining achieved the latest results from resource definition drilling at the project’s May Day deposit.

The drilling being undertaken is part of a strategy the company has called ‘Hub & Spoke’ as it strives to advance each of the project’s deposits to mineable resources, to achieve critical mass in support of a new substantial centrally located processing plant.

The company said the most recent assays show further strong, wide, and continuous gold-polymetallic intercepts, confirming substantial true widths of up to approx. 25 metres at relatively shallow depths.

Recent May Day resource drilling has returned:

13 metres at 1.33 grams per tonne gold, 50g/t silver, 1.48 per cent zinc, 0.62 per cent lead, 0.18 per cent copper from 88m within 32m at 0.89g/t gold, 34g/t silver, 2.21 per cent zinc, 1.33 per cent lead, 0.28 per cent copper from 88m;

7m at 2.18g/t gold, 34g/t silver, 0.43 per cent zinc, 0.39 per cent lead, 0.12 per cent copper from 143m within 17m at 1g/t gold, 18g/t silver, 0.65 per cent zinc, 0.38 per cent lead, 0.09 per cent copper from 143m;

8m at 2.2g/t gold, 42g/t silver, 0.89 per cent zinc, 0.59 per cent lead, 0.22 per cent copper from 171m;

17m at 1.62g/t gold, 29g/t silver, 0.46 per cent zinc, 0.29 per cent lead, 0.08 per cent copper from 82m within 42m at 1.2g/t gold, 35g/t silver, 1.13 per cent zinc, 0.8 per cent lead, 0.16 per cent copper from 81m; and

19m at 1.48g/t gold, 30g/t silver, 0.49 per cent zinc, 0.36 per cent lead, 0.09 per cent copper from 103m within 38m at 1.18g/t gold, 33 g/t silver, 1.19 per cent zinc, 0.94 per cent lead, 0.26 per cent copper from 100m.

“These further gold-polymetallic intercepts bolster the recently announced results from the first few drillholes at May Day, indicating strong, wide and continuous mineralisation with true thicknesses of up to 25 metres in the upper parts of the deposit,” Peel Mining managing director Rob Tyson said in the company’s ASX announcement.

“The deeper results show good continuity of higher grade, albeit narrower mineralisation.

“Whilst still relatively early in terms of drill results, these latest assays are viewed as highly encouraging.

“Further to the company’s plans to build critical mass and increase exposure to high grade copper, resource definition drill planning for Wirlong to establish a maiden resource estimate has recently been completed.”

Peel Mining anticipates resources drilling at the Wirlong copper deposit to commence in the coming weeks following finalisation of drill planning.

Drilling at Wirlong has been designed to target the upper 350m of the Tally-Ho lens, where high-grade copper intercepts have previously been returned, in order to establish a maiden mineral resource estimate.








Peel Mining Drills Encouraging Signs at May Day and Southern Nights

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported on drilling results from the company’s South Cobar project, located near Cobar in Western New South Wales.

Peel Mining has received results from Resource definition drilling at the May Day deposit that returned strong, wide gold-polymetallic intercepts with a high-grade core, including:

14 metres at 1.89 grams per tonne gold, 28g/t silver, 0.48 per cent zinc, 0.32 per cent lead, 0.09 per cent copper from 98m within 31.5m at 1.05g/t gold, 26g/t silver, 0.89 per cent zinc, 0.78 per cent lead, 0.16 per cent copper from 95m;

14m at 1.7g/t gold, 82g/t silver, 3.75 per cent zinc, 3.31 per cent lead, 1.11 per cent copper from 148m within 29.8m at 0.92g/t gold, 46g/t silver, 2.63 per cent zinc, 2.52 per cent lead, 0.58 per cent copper from 146m; and

12.1m at 2.08g/t gold, 69g/t silver, 1.68 per cent zinc, 1.38 per cent lead, 0.3 per cent copper from 216.9m within 31.31m at 1.15g/t gold, 39g/t silver, 0.98 per cent zinc, 0.73 per cent lead, 0.14 per cent copper from 210.69m.

Peel has Resource drilling at May Day nearing completion in advance of an anticipated Mineral Resource Estimate (MRE) update anticipated around year end.

Assays are pending for the balance of completed drilling.

Peel also carried out five extensional drillholes at the southern end of the Southern Nights deposit to follow-up a previous encounter of gold-polymetallic mineralisation on the southern edge of the current MRE.

Two of these holes returned new massive sulphide intercepts up to approx. 80m further south, outside of the current MRE.

“The robust continuity of strong gold-polymetallic mineralisation over mineable widths within the first few resource definition drillholes at May Day affirms the potential of the resource,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“These drillholes have also provided us with a clearer understanding of the geological and structural setting, as well as material for metallurgical testwork.

“We look forward to releasing further results as they become available.

“The new step-out massive sulphide intercepts at Southern Nights are also a welcome addition to the company’s critical mass ambitions, highlighting the wide-open nature of this major mineral system.

“Further step-out drilling is planned.”








Peel Mining Completes Maiden May Day Resource Estimate

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported completion of a maiden Inferred Mineral Resource Estimate (MRE) for the May Day deposit, located south of Cobar in western New South Wales.

The maiden Inferred Mineral Resource Estimate for the May Day deposit has come in at:

1.128 million tonnes at 1.3 grams per tonne gold, 19g/t silver, 0.82 per cent zinc, 0.61 per cent lead, 0.11 per cent copper for 46,400 ounces gold, 676,000 ounces silver, 9,260 tonnes zinc, 6,860 tonnes lead, and 1,240 tonnes copper.

The May Day deposit is contained within ML1361 and is part of the Mallee Bull project, which is currently the subject of a purchase and sale agreement between Peel and CBH Resources Limited.

Settlement of the transaction is subject to Ministerial consent for the transfer of title and is expected in the near term.

“The May Day MRE brings modest but important near-surface gold metal exposure to our asset base and is another important step for the company as we continue towards building critical mass for the South Cobar Basin Hub and Spoke project,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“The drill-out now underway is designed to deliver a high quality MRE composed primarily of Indicated classified resources within an optimal pit, and we look forward to releasing drill assays over the weeks ahead in advance of updating the MRE around year end.

“Mineralisation at May Day bears similarities to other Cobar-style gold-rich deposits such as Hera and Peak, and importantly, remains completely open down dip and along strike – we look forward to investigating its greater potential in due course.”







Peel Mining Fights Off Wirlong NSR Bid

THE BOURSE WHISPERER: Peel Mining (ASX: PEX) exercised its pre-emptive muscle to acquire Weddarla Pty Ltd’s 1.5 per cent Net Smelter Return (NSR) royalty over tenement EL8307, within the company’s Southern Cobar Basin tenements in New South Wales.

Peel Mining fought off a third party’s unconditional cash offer of $1.2 million made to Weddarla by a Toronto Stock Exchange listed royalty streaming business.

Respecting Peel’s first right of refusal under the Royalty Deed, Weddarla offered to sell the royalty to Peel for $1.2 million (excluding GST) in cash.

Peel elected to exercise its right to acquire the royalty interest, after which it will have 100 per cent unencumbered ownership of all its Southern Cobar Basin tenements.

“The unconditional cash offer from a TSX-listed royalty streaming business for the 1.5 per cent NSR royalty covering EL8307 continues to underscore the widespread interest that exists for Cobar Basin assets, and the strong economic potential therein,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“Peel’s pre-emptive right has ensured that the company can completely consolidate its Southern Cobar Basin tenements removing all future ownership encumbrances.”

EL8307 contains the Wirlong copper-silver deposit, as well as the Sandy Creek and Red Shaft prospects.

Peel discovered Wirlong in 2016, which is a classic Cobar-style VMS copper deposit that has returned strong copper mineralised intercepts commencing from around 60 metres below surface to at least 600m below surface.

With the Mallee Bull deposit, Wirlong increases the company’s exposure to copper.

Peel intends to undertake drilling at Wirlong over the coming months with the objective of establishing a copper-rich Maiden mineral resource estimate.

“As foreshadowed, it is the company’s intention, in due course, to undertake a resource drillout at Wirlong in order to establish a maiden mineral resource estimate,” Tyson said.

“It is our strong belief that Wirlong, and the broader EL8307 landholding, has excellent economic potential, and the buyout of the royalty interest underlines the Company’s view on the value proposition.”







Peel Mining to Reclaim Full Ownership of Cobar Superbasin Project

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.”








Peel Mining Continues Wirlong Drill Success

THE DRILL SERGEANT: Peel Mining (ASX: PEX) recently completed a diamond drill program at the Wirlong prospect, south of Cobar in western New South Wales.

Wirlong is part of the company’s Cobar Superbasin project, A Joint Venture with JOGMEC (Japan Oil, Gas and Metals National Corporation).

Peel Mining’s latest drilling at Wirlong comprised three diamond drillholes that were designed to target the Wirlong Central zone to test a newly interpreted strike orientation of high-grade copper mineralisation returned from historic drillholes.

“Importantly, the newly returned high-grade copper intercepts support the revised structural model, offering excellent potential to define high-quality resources and add new mineralisation in the future,” Peel Mining said in its ASX announcement.

Results from the drilling include:

4.26 metres at 2.22 per cent copper, 7 grams per tonne silver from 380m, including 0.26m at 15.85 per cent copper, 58g/t silver from 384m; and
0.74m at 14.3 per cent copper, 66g/t silver from 396.2m.

1.15m at 7.71 per cent copper, 30g/t silver from 54.45m, including 0.25m at 30 per cent copper, 97g/t silver from 54.45m;
30m at 1.64 per cent copper, 8g/t silver from 305m, including 14m at 2.63 per cent copper, 12g/t silver from 320m; and
9.6m at 1.32 per cent copper, 2g/t silver from 436.4m.

5.9m at 3.19 per cent copper, 13g/t silver from 347.1m, including 0.65m at 18.65 per cent copper and 48g/t silver from 351.87m.

Peel Mining completed down-hole EM on drillholes WLDD003 and WLDD004, using a newly designed transmitter loop designed to couple with mineralisation based upon its revised structural model.

“A number of high-grade copper intercepts in the area intersect the modelled plate or are in close proximity to its position, further supporting the new structural models’ validity,” the company explained.

“The strike of mineralisation remains open to the southeast and northwest, and downdip.”

The company forecast future activities for Wirlong to include further infill and extensional drilling and geophysical surveying to assist with exploration drill targeting along with the completion of a maiden mineral resource estimate.






Peel Mining Substantially Upgrades Southern Nights Resource

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.”





Class Players Attracted to Peel Mining’s NSW Holdings

THE CONFERENCE CALLER: If the quality of an exploration house’s assets is reflected by the calibre of its joint venture partners and investors, then Peel Mining (ASX: PEX) could well be sitting on something quite significant. By Mark Fraser

The Western Australian company with a New South Wales focus has attracted the attention of some pretty interesting names to its project portfolio – including the giant Japanese resources house Japan Oil, Gas and Metals Corporation (JOGMEC) and mid-tier base metals mining house CBH Resources, which was once listed on the ASX but is now owned by Japan’s Toho Zinc Company.

One of Australia’s largest domestically-own gold miners, St Barbara (ASX: SBM), also has a 13 per cent stake in the company, while another of its major shareholders (15%) is Hampton Hill Mining (ASX: HHM), whose chairman is none other than legendary WA geologist Joshua Pitt, the man who first identified the mineralised potential of the rich polymetallic Golden Grove mine in WA’s Mid West after discovering Gossan Hill back in the early 1970s.

Over the past seven years Peel has established three major project areas in the Cobar Basin.

At the moment it seems the most advanced is its wholly-owned Wagga Tank-Southern Lights high grade zinc-lead-silver system, where the company has established a maiden resource – using a 3.5 zinc equivalent cut off – 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 (or a 9.2% zinc equivalent).

Located around 150 kilometres south west of the mining hub of Cobar, Wagga Tank-Southern Lights, which remains open along strike and downdip, is hosted within volcanogenic massive sulfide (VMS) mineralisation and is currently undergoing a resource estimation update.

Once this is completed it is expected scoping and pre-feasibility due diligence will quickly kick in.

During the recent RIU Explorers Conference in Fremantle, Peel Mining managing director Rob Tyson said the new resource work would be more akin to, “what you see in the gold mining industry for open pit”.

“We are actually running it through a stope optimisation process to essentially give us a mining resource eventually,” he said.

“The drilling we’ve been doing had … two aims essentially – to increase the quality of the resource, so we are hoping for a significant jump in the amount of indicated resource classification for this next estimate, and we are also hoping to improve the scale of the system.

“And we’ve had a couple of exploration successes as part of our last drill program that we think will put us in good stead there.

“So we think this is going to turn into a classic sort of VMS setting. It’ll grow, so long as we keep the drill rig turning.”

Meanwhile, some 50 kilometresto the north east of Wagga Tank-Southern Lights is Mallee Bull, where past drilling has revealed high grade copper intercepts, including:

14.1 metres at 4.27 per cent copper, 51g/t silver and 0.25g/t gold from 262m;

11m at 9.02 per cent copper, 114g/t silver and 0.37g/t gold from 296m;

53m at 4.08 per cent copper, 42g/t silver and 0.22g/t gold from 470m;

69m at 3.48 per cent copper, 34g/t silver and 0.14g/t gold from 533m; and

84m at 4.42 per cent copper, 38g/t silver and 0.14g/t gold from 575m.

A 50:50 joint venture with CBH, which has already spent $12.8 million on the undertaking, Mallee Bull, currently enjoys a resource – using a 1% copper equivalent cut off – of 6.8 million tonnes at 1.8 per cent copper, 31g/t silver, 0.4g/t gold, 0.6 per cent lead and 0.6 per cent zinc (or a 2.6% copper equivalent).

During his RIU presentation, Tyson said Peel was in discussions with its JV partner regarding the project’s path forward following CBH’s recent decision to put its Endeavor base metals operation on care and maintenance after 37 years’ of more or less continual production.

“It (Mallee Bull) is really a significant copper system – it’s well defined already, but it is in need of a drill out,” he noted.

“Some of these intercepts are as good as you will see anywhere. In fact at the time they were reported they were amongst the best in the world.

“It seems a lot of people have forgotten about Mallee Bull – we certainly haven’t, and we’d like to get back in there, drill it out and then bring it to the scoping phase.”

Peel’s third major priority is the development of Wirlong, which sits around 75 km to the south east of Cobar and is currently half-owned by JOGMEC.

So far the Japanese resources house has spent $7.9 million helping evolve the ore body, where the rig has returned intercepts of:

9m at 3.29 per cent copper and 18g/t silver from 70m;

27m at 5.3 per cent copper and 23g/t silver from 286m;

31m at 3.19 per cent copper and 11g/t silver from 299m;

9m at 8 per cent copper, 17g/t silver and 0.21g/t gold from 616m; and

17m at 4.59 per cent copper and 8g/t silver from 738m.

Tyson said Wirlong was effectively a Cobar-style copper system, with the chalcopyrite-rich mineralisation defined from surface to 600m depth and open over a 500m strike length.

“We’ve just done some drilling and we’ve got some assays pending, and that drilling is designed to test a new structural model,” he explained.

“And I think the signs are very good – we now understand what controls the mineralisation, so we are looking to push that into a resource estimate in the June quarter.”

Although the Cobar region has a long and established mining history – having yielded some 2.5 million tonnes of copper, 4.8 million tonnes of zinc,2.8 million tonnes of lead, 4,000 tonnes of silver and 200 tonnes of gold over 150 years – Tyson firmly believes there is still further wealth to be found in this part of the world.

“Most of our ground holdings are in the southern part of the Cobar Basin and we believe that there’s heaps of upside,” he told RIU delegates.

“It was previously viewed as a mature exploration destination – our work has proven it’s anything but.”





Encounter Resources Intersects Tanami Bedrock Gold

THE DRILL SERGEANT: Encounter Resources (ASX: ENR) reported on recent drilling activities undertaken at the Afghan and Mojave prospects in the Tanami region of Western Australia with Joint Venture partner Newcrest Mining.

Red 5 Continues Growth at King Of The Hill

THE DRILL SERGEANT: Red 5 Limited declared its decision in the December 2019 Quarter to boost underground drilling capacity at the company’s King of The Hill (KOTH) project in Western Australia with three diamond rigs, has paid off.

Peel Mining Drills New Southern Nights Gold Zone

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported the discovery of strong gold mineralisation associated with a new high-grade zone at the southern end of the Southern Nights deposit from the recent resource upgrade drilling program at the company’s 100 per cent-owned Wagga Tank-Southern Nights project, located south of Cobar in western New South Wales.

Neometals Produces High Purity Dioxide Hydrolsate

THE BOURSE WHISPERER: Neometals (ASX: NMT) has successfully produced high purity (>98%) titanium hydrolysate (hydrated titanium dioxide ‐ TiO2.2H2O) from the titanium recovery stage of the Australian pilot plant trial at the company’s Barrambie titanium and vanadium project in Western Australia.

Magnetic Resources Encounters Encouraging Gold Results at Lady Julie

THE DRILL SERGEANT: Magnetic Resources (ASX: MAU) has completed an initial RC drilling program at the Lady Julie project, not far from the company’s Hawks Nest 9 project, located near Laverton in Western Australia.


Peel Mining Drills New Southern Nights Gold Zone

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported the discovery of strong gold mineralisation associated with a new high-grade zone at the southern end of the Southern Nights deposit from the recent resource upgrade drilling program at the company’s 100 per cent-owned Wagga Tank-Southern Nights project, located south of Cobar in western New South Wales.

Peel mining completed a drilling program in 2019 that was designed to develop a higher confidence Mineral Resource Estimate at Wagga Tank-Southern Nights.

The drilling was targeted towards the Wagga Tank, Southern Nights and the Corridor Zone located between Wagga Tank and Southern Nights.

This returned strong assay results, including some of the highest-grade gold mineralisation the company has intersected at Southern Nights to date:

35 metres at 6.3 per cent zinc, 2.59 per cent lead, 105 grams per tonne silver, 0.24 per cent copper, 1.87g/t gold from 232m, including 5.9m at 17.13 per cent zinc, 8.34 per cent lead, 376 g/t silver, 0.26 per cent copper, 7.6 g/t gold from 232.8m; and
7m at 13.3 per cent zinc, 4.4 per cent lead, 97 g/t silver, 0.1 per cent copper 0.89 g/t gold from 251m.

Peel Mining completed a review of these and other infill results, from which it determined that adequate drilling has now been completed to commence Mineral Resource Estimation work with an upgraded resource anticipated for March quarter 2020.

This resource will form the basis for further concept study work to progress the project towards development.

“The high-grade gold associated with the mineralisation in drillhole WTRCDD238 is a very welcome development for the Southern Nights system, all the more exciting as this area remains completely open to the south,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“More importantly, a recent review of resource upgrade drilling indicates good infill and extensional coverage has been established, supporting an update of the Mineral Resource Estimate.

“We look forward to providing an updated resource this quarter.”