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Peel Mining Raises $7M to Advance Cobar Projects

THE BOURSE WHISPERER: Peel Mining (ASX: PEX) has received firm commitments to raise $7 million to continue advancing the company’s 100 per cent-owned Wagga Tank-Southern Nights deposit and 50 per cent-owned Mallee Bull deposit towards development.

Both projects are in the Cobar Basin of New South Wales.

Peel Mining said the funds raised under the Placement will enable it to undertake mining scoping studies at the Wagga Tank-Southern Nights deposit and to continue pre-development activities at the Mallee Bull deposit.

The funds will also be put towards continued exploration for new mineralisation at Wagga Tank-Southern Nights and to continue CSP programs of work with Joint Venture Partner JOGMEC.

The company signalled it would also be able to carry out advanced exploration at some of its exciting regional targets.

The Placement comprised the issue of approximately 22.6 million fully paid ordinary shares at 31 cents each to raise $7 million.

“The company is about to embark on the most exciting phase in its history, as we deliver the maiden resource at the high-grade Wagga Tank-Southern Nights deposit, and finalise plans to bring the Mallee Bull deposit into development,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“We will commence mining scoping studies at Wagga Tank-Southern Nights as well as continue to drill test for new mineralisation associated with this major mineral system.

“This successful raising places the company in a strong financial position to continue advancing these high-grade Cobar assets towards development.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

Peel Mining Readies for Maiden Resource Calculation

THE DRILL SERGEANT: Peel Mining (ASX: PEX) has completed Resource drilling at the company’s Wagga Tank and Southern Nights projects in New South Wales with a maiden Mineral Resource Estimate on track for delivery in June.

Peel Mining indicated the drilling had extended mineralisation to at least 450 metres below surface in the Southern Nights Central Zone highlighting the depth extent of the ore body, returning multiple deeper intercepts including:

WTRCDD192
42.78 metres at 5.38 per cent zinc, 2.71 per cent lead, 0.63 per cent copper, 80 grams per tonne silver and 0.42g/t gold from 349.22m, including 30.38m at 7.31 per cent zinc, 3.69 per cent lead, 0.59 per cent copper, 107g/t silver and 0.51g/t gold from 349.22m;

WTRCDD166W1
88m at 3.13 per cent zinc, 1.09 per cent lead and 26g/t silver from 407m, including 4.7m at 9.22 per cent zinc, 2.32 per cent lead, and 80g/t silver from 442.3m;

WTRCDD188W1
40m at 3 per cent zinc, 1.03 per cent lead and 49g/t silver from 477m, including 10m at 4.87 per cent zinc, 1.58 per cent lead, and 71g/t silver from 496m;

WTRCDD190
29.1m at 4.23 per cent zinc, 1.4 per cent lead, 0.21 per cent copper, 50g/t silver and 0.11g/t gold from 401m, including 4.72m at 13.79 per cent zinc, 4.84 per cent lead, 0.24 per cent copper, 170g/t silver and 0.07g/t gold from 402.28m; and

WTRCDD204
18.9m at 3.49 per cent zinc, 2.25 per cent lead, 0.19 per cent copper, 145g/t silver and 0.17g/t gold from 348.2m, including 3.7m at 12.21 per cent zinc, 10 per cent lead, 0.89 per cent copper, 673g/t silver and 0.63g/t gold from 348.2m.

Peel Mining said the Wagga Tank-Southern Nights resource definition drilling program had delineated the approximate dimensions of the high-grade mineralisation associated with the Southern Nights Central Zone.

The drilling has also better outlined the broader mineralised structure across the 700 metres of strike at Southern Nights.

“Detailed structural and geochemical studies have recently been completed aiding in the development of the geological model in preparation for the maiden resource being undertaken in June,” Peel Mining said in its ASX announcement.

“This work will also assist with future drilling targeting additional high-grade centres in this large mineralised system.

“Importantly, mineralisation remains open down-dip/plunge and along strike, with the deeper intersections highlighting continuity at depth, typical of Cobar-style deposits.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

Peel Mining to Advance Mallee Bull Decline

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.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

Peel Mining Continues High-Grade Hits at Southern Nights

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported Resource definition drilling results from the company’s 100 per cent- owned Wagga Tank project, south of Cobar in western New South Wales.

Peel Mining said the Resource definition drilling has now been completed, on schedule and on budget, with work on the maiden mineral resource estimate underway and due for completion in June.

The company believes the Wagga Tank project, including Southern Nights, is emerging as an important zinc polymetallic discovery to be made Australia in recent years.

Drilling to date has defined the broader dimensions of the very high-grade mineralisation present at Southern Nights Central Zone (SNCZ) , along with infilling and extending the wider Southern Nights mineral system.

Importantly, mineralisation remains open along strike and down dip/plunge at both Wagga Tank and Southern Nights.

Resource drilling at Southern Nights delivered further exceptional intercepts including:

WTRCDD188
44.11 metres at 4.52 per cent zinc, 1.55 per cent lead, 0.06 per cent copper, 203 grams per tonne silver and 0.07g/t gold from 389.89m, including 1.99m at 23.88 per cent zinc, 10.96 per cent lead, 0.26 per cent copper, 3,548g/t silver and 0.11g/t gold from 389.89m and 2.27m at 18.91 per cent zinc, 6.4 per cent lead, 0.36 per cent copper, 268g/t silver and 0.28g/t gold from 402.16m;

WTRCDD190
21m at 4.94 per cent zinc, 1.77 per cent lead, 0.26 per cent copper, 65g/t silver and 0.11g/t gold from 401m, including 4.72m at 13.79 per cent zinc, 4.84 per cent lead, 0.24 per cent copper, 170g/t silver and 0.07g/t gold from 402.28m; and

WTRCDD192
23.42m at 9.23 per cent zinc, 5.41 per cent lead, 0.7 per cent copper, 125g/t silver and 0.47g/t gold from 351.58m, including 8m at 19.23 per cent zinc, 11.11 per cent lead, 1.36 per cent copper, 307g/t silver and 0.64g/t gold from 352m.

Full final assays for holes WTRCDD179, WTRCDD189 and WTRCDD199 extended the high-grade mineralised intercepts within these holes, and in WTRCDD189 identified a new broad copper-gold zone:

WTRCDD179
35m at 6.5 per cent zinc, 3.28 per cent lead, 0.37 per cent copper, 212g/t silver and 1.02g/t gold from 181m, including 3m at 16.67 per cent zinc, 6.78 per cent lead, 1.04 per cent copper, 437g/t silver and 0.76g/t gold from 185m and 2.9m at 30.34 per cent zinc, 18.24 per cent lead, 0.19 per cent copper, 415g/t silver and 0.38g/t gold from 193m;

WTRCDD189
12m at 15.68 per cent zinc, 7.45 per cent lead, 0.13 per cent copper, 170g/t silver and 0.31g/t gold from 336m, including 5.4m at 29.26 per cent zinc, 13.97 per cent lead, 0.22 per cent copper, 326g/t silver and 0.45g/t gold from 337.2m and 37m at 0.76 per cent copper, 0.46g/t gold, 13g/t silver 0.37 per cent zinc and 0.05 per cent lead from 364m; and

WTRCDD199
28m at 19.03 per cent zinc, 10.77 per cent lead, 0.24 per cent copper, 166g/t silver and 1.21g/t gold from 224m, including 16.35m at 28.09 per cent zinc, 15.77 per cent lead, 0.26 per cent copper, 270g/t silver and 1.8g/t gold from 224.75m.

“Detailed structural and geochemical studies are now underway to further develop the geological model in preparation for the maiden mineral resource estimate,” Peel Mining said in its ASX announcement.

“This work will also assist in generating future drill targets in this large mineralised system.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

Peel Mining Continues Southern Nights Festival of Hits

THE DRILL SERGEANT: Peel Mining (ASX: PEX) has continued its run of high-grade infill drilling results from the company’s 100 per cent-owned Wagga Tank/Southern Nights project, south of Cobar in western New South Wales.

Peel Mining is systematically progressing Resource definition drilling at Wagga Tank-Southern Nights with the aim of establishing a maiden JORC Mineral Resource Estimate it has scheduled for delivery in June 2019.

Assay results from drillhole WTRCDD199 returned:
23.1 metres at 22.54 per cent zinc, 12 per cent lead, 0.25 per cent copper, 200 grams per tonne silver and 1.42g/t gold from 224m, including 16.35m at 28.09 per cent zinc, 15.77 per cent lead, 0.26 per cent copper, 270g/t silver and 1.8g/t gold from 224.75m.

Peel explained that drillhole WTRCDD199 is located approximately 50 metres northwest of previously announced drillhole WTRCDD150 and exhibits the same high-grade tenor.

Drillhole WTRCDD189 assay results included:
9m at 19.91 per cent zinc, 9.55 per cent lead, 0.17 per cent copper, 220g/t silver and 0.36g/t gold from 336m, including 5.4m at 29.26 per cent zinc, 13.97 per cent lead, 0.22 per cent copper, 326g/t silver and 0.45g/t gold from 337.2m.

Peel said this hole had confirmed continuity between the shallower mineralisation that was previously encountered by WTRCDD150 and the deeper mineralisation in WTRCDD166, approximately 170m down dip.

WTRCDD150 returned 18.2m at 55.5 per cent zinc+lead (Zn+Pb) from 182m, and WTRCDD166 returned a high-grade section of 16.2m at 21.9 per cent Zn+Pb from 366m.

A further drillhole WTRCDD179, drilled on an infill section in the south of the Central Zone approximately 100m south of drillhole WTRCDD150, returned assay results of:
17m at 10.36 per cent zinc, 6.05 per cent lead, 0.6 per cent copper, 401g/t silver and 1.86g/t gold from 181m, including 3m at 16.67 per cent zinc, 6.78 per cent lead, 1.04 per cent copper, 437g/t silver and 0.76g/t gold and 2.9m at 30.34 per cent zinc, 18.24 per cent lead, 0.19 per cent copper, 415 g/t silver and 0.38 g/t gold from 193m.

Peel claimed WTRCDD179 confirmed continuity of high-grade mineralisation to the south increasing the strike length of the high-grade zone.

“Drilling so far has successfully defined the approximate dimensions of the high-grade mineralisation,” Peel Mining said in its ASX announcement.

“Detailed structural and geochemical studies are also underway to further develop the geological model in preparation for the maiden mineral resource estimate for completion in June.

“This work will also assist in future drill targeting of additional high-grade zones in this large mineralised system.

“It is important to note the broader mineralisation is still open in all directions, with the company primarily focused on defining the high-grade component in order to fast track any potential economic assessments and ultimately production scenarios.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

Peel Mining Earns High-Grade Southern Nights Returns

THE DRILL SERGEANT: Peel Mining released further high-grade results from Resource drilling underway on the Southern Nights deposit, part of the company’s Wagga Tank project in New South Wales.

Peel Mining explained the assays it has received during February represent additional close spaced (20x20m) infill drilling of the Southern Nights Central Zone and drilling for metallurgical and Mineral Resource Estimate purposes.

WTRCDD175 was drilled approximately 30m up-dip of previously reported WTRCDD043 and crosscuts WTRCDD035 a historical hole which had been drilled down the dip of mineralisation.

WTRCDD175:
33 metres at 11.71 per cent zinc, 5.65 per cent lead, 0.19 per cent copper, 147 grams per tonne silver and 1.25g/t gold from 172m including 10.8m at 27.49 per cent zinc, 14.54 per cent lead, 0.5 per cent copper, 409g/t silver and 3.16g/t gold.

“This drillhole intersected a zone of significant shearing and experienced 2.2 metres of core loss from within the 32-metre mineralised interval,” Peel Mining explained in its ASX announcement.

“A value of zero was assigned to all elements in intervals of core loss which is considered conservative.”

WTRCDD180 was drilled as a twin of another previously reported drillhole – WTRCDD150 to provide material for further metallurgical testwork and for Mineral Resource Estimate purposes.

Results for this twin hole showed excellent repeatability of those reported in the earlier WTRCDD150.

WTRCDD180
16.95m at 43.25 per cent zinc, 14.66 per cent lead, 1 per cent copper, 356g/t silver and 3.11g/t gold from 179.15m against the intercept from WTRCDD150 previously reported as 18.2m at 40.3 per cent zinc, 15.21 per cent lead, 0.97 per cent copper, 356g/t silver and 2.77g/t gold from 182m.

The company declared geological logging and portable XRF analyses have also indicated intersections encountered in WTRCDD189, WTRCDD199 and WTRCDD179 further delineating a coherent body of high-grade mineralisation.

“These results continue to confirm the understanding of the high-grade mineralisation which is thought to be steep westerly dipping; covering up to approximately 180 metres strike and has been defined from approximately 120m below surface to approximately 350m below surface,” Peel continued.

“Importantly, this mineralisation remains open down-dip/plunge.

“It should also be noted that focus has been directed on the thickest and highest-grade zone of mineralisation which resides within the Wagga Tank Mudstone however additional mineralisation is also present within the volcanoclastics of the Vivigani Formation and the continuity and tenor of these zones is still being assessed.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

Like Stories Of Old: Southern Nights Has More to Tell

THE INSIDE STORY: Since discovering the high-grade zinc-lead-silver Southern Nights prospect in October 2017, Peel Mining (ASX: PEX) has confirmed it to be one of Australia’s most important zinc polymetallic discoveries.

The original discovery came on the back of some good old-fashioned detective work carried out on historic data, from which Peel Mining identified a near surface oxide gold zone, beneath which sat some supergene copper, gold and silver.

However, the primary mineralisation that caught the company’s attention was the deeper zinc-lead-silver rich massive sulphide.

An 18-hole program validated the historical results, demonstrating around 300 metres of strike and a system defined to 350 metres below surface and open in all directions.

Furthermore, the alteration and mineralisation in the drill core indicated this was likely to be a much larger system than initially thought.

Peel was encouraged to conduct further exploration, primarily geophysics conducting aeromag, surface EM, IP and gravity surveys that led to the discovery of the Southern Nights deposit.

Subsequent drilling produced high-grade mineralised intercepts at Southern Nights, and from the intervening zone between Wagga Tank and Southern Nights.

Most importantly, the drilling confirmed the Wagga Tank and Southern Nights deposits to be linked together, essentially as parts of one large mineral system.

Peel Mining’s most recent drilling at the Wagga Tank-Southern Nights project have provided more evidence to support the company’s growing belief in the project to be emerging as one of the most significant zinc polymetallic discoveries in Australia in recent years.

Assay results Peel recently received for drilling completed prior to the Christmas/New Year shutdown returned multiple new thick, high-grade zinc-lead-silver mineralised intercepts from the Southern Nights Central Zone, expanding the geometry of the known zinc-rich mineralisation.

Three drillholes: WTRCDD165, WTRCDD166 and WTRCDD167 were completed as part of an infill and extensional resource definition drilling program and were specifically designed to target the Southern Nights Central Zone where a coherent body of high-grade mineralisation is taking shape.

Assays from the Southern Nights Central Zone drilling encountered thick, high-grade intercepts including:

WTRCDD166
40 metres at 10.2 per cent zinc, 2.83 per cent lead, 0.61 per cent copper, 49 grams per tonne silver, 1.04g/t gold from 365m, including 16.21m at 16.91 per cent zinc, 5.01 per cent lead, 0.43 per cent copper, 87g/t silver, 0.98g/t gold from 366.23m, and

5.63m at 17.23 per cent zinc, 3.75 per cent lead, 1.02 per cent copper, 49g/t silver, 1.44g/t gold from 392.42m;

WTRCDD165
26.63m at 5.39 per cent zinc, 1.36 per cent lead, 0.2 per cent copper, 48g/t silver, 0.34g/t gold from 217.37m including 12m at 9.28 per cent zinc, 1.99 per cent lead, 0.19 per cent copper, 59g/t silver, 0.37g/t gold from 218m, and

5.5m at 7.21 g/t gold, 0.59 per cent copper, 13g/t silver, 0.78 per cent zinc, 0.14 per cent lead from 325m to EOH; and

WTRCDD167
13.17m at 7.78 per cent zinc, 3.6 per cent lead, 0.12 per cent copper, 248g/t silver, 0.55g/t gold from 329m, including 9m at 10.81 per cent zinc, 5.11 per cent lead, 0.18 per cent copper, 343g/t silver, 0.75g/t gold from 330m.

Further assays for drillholes WTRCDD153 and WTRCDD157 extended previous high-grade mineralised intercepts, returning intersections of:

WTRCDD153
20.65m at 9.92 per cent zinc, 4.83 per cent lead, 0.51 per cent copper, 104g/t silver, 0.53g/t gold from 355.35m, including 8.29m at 16.91 per cent zinc, 10.26 per cent lead, 0.7 per cent copper, 210g/t silver, 0.63g/t gold from 355.35m; and

WTRCDD157
53m at 7.43 per cent zinc, 3.46 per cent lead, 1.48 per cent copper, 114g/t silver, 1.47g/t gold from 218m, including 18.1m at 20.37 per cent zinc, 9.77 per cent lead, 0.36 per cent copper, 238g/t silver, 1.09g/t gold from 218m, and

18m at 3.04 per cent copper, 2.49g/t gold, 81g/t silver, 0.93 per cent zinc, 0.06 per cent lead from 252m.

The copper-gold mineralisation intersected in WTRCDD157 is the most substantial copper-gold intercept Peel Mining has achieved to date at Wagga Tank-Southern Nights.

The zinc-rich mineralised intercepts Peel Mining has encountered at Southern Nights Central has enabled the company to interpret the presence of an important zone of very high-grade mineralisation.

The true widths of mineralisation encountered has been estimated at about 70 to 80 per cent of the downhole widths.

The high-grade mineralised zone is thought to be covering up to around 180 metres of strike and has been defined from approximately 120m below surface to around 350m below surface.

Importantly, this mineralisation remains open downdip/plunge.

Peel is eager to continue to target this area with close-spaced infill drilling to better define the geometry and scale of the high-grade mineralisation in anticipation of the commencement of a scoping study.

Peel is carrying out drilling, comprising approximately 20,000m of RC and diamond drilling, designed to enable the completion of a maiden JORC-compliant mineral resource estimate by the end of the 2018/19 financial year.

The program is also designed to test for extensions to the mineralised system, which remains open along strike and at depth.

Two multi-purpose (RC/diamond) drill rigs have been drilling away on site to systematically infill and extend the current two-kilometre long footprint of the Wagga Tank-Southern Nights mineral system.

The program has revisited drillhole WTRCDD006, which was extended with further diamond drilling resulting in the intersection of zinc-lead-silver mineralisation.

Drillhole WTRCDD006 was originally drilled in 2016, however, this time it was targeted at the southern end of the Wagga Tank deposit to return a mineralised intercept of:

19.3m at 7.32 per cent zinc, 3.38 per cent lead, 0.3 per cent copper, 183g/t silver, 0.69g/t gold from 243m, including 12m at 10.36 per cent zinc, 4.75 per cent lead, 0.2 per cent copper, 265g/t silver, 0.71g/t gold from 250.3m.

Although the Wagga Tank-Southern Nights project represents a potentially major zinc-rich polymetallic Cobar-type discovery and is currently the company’s primary focus, Peel Mining boasts a healthy portfolio of projects with just as much potential.

Mallee Bull is an advanced copper- polymetallic deposit that is subject to a feasibility study; the deposit remains open in many directions.

It contains a JORC compliant Mineral Resource Estimate of 6.76 million tonnes at 1.8 per cent copper, 31 grams per tonne silver, 0.4g/t gold, 0.6 per cent lead and 0.6 per cent zinc (2.6% copper equivalent) containing approximately 119,000 tonnes of copper, 6.6 million ounces silver, 83,000 ounces gold, 38,000 tonnes lead and 38,000 tonnes zinc (175,000t copper equivalent) (using a 1% copper equivalent cutoff).

The Cobar Superbasin project Farm-in Agreement with Japan Oil, Gas, and Metals National Corporation (JOGMEC) presents funded, highly-prospective and strategic greenfields exploration potential and includes the Wirlong copper discovery.

Wirlong has returned drill results that in other portfolios would make it a higher-ranked project, such as:

WLDD001
9m at 8 per cent copper, 17 g/t silver, 0.21g/t gold from 616m and 38m at 1.18 per cent copper, 4g/t silver from 450m;

Peel Mining also holds a 36.3 per cent shareholding in Saturn Metals (ASX: STN) that offers exposure to the Apollo Hill gold project in the WA goldfields.

Peel originally acquired the Apollo Hill gold assets hoping to become a West Australian gold producer; however, its discoveries in the Cobar region of New South Wales shifted its focus.

 

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

 

Peel Mining Scores Big Hit at Southern Nights

THE DRILL SERGEANT: Peel Mining (ASX: PEX) described the latest intercept encountered at the company’s 100 per cent- owned Wagga Tank project, south of Cobar in western New South Wales as, “stunning”.

Peel Mining said the latest result enhanced the Wagga Tank project’s reputation, which includes the Southern Nights prospect, as emerging to be one of the most significant zinc polymetallic discoveries in Australia in recent years.

Drillhole WTRCDD150 returned the spectacular zinc-lead-silver-gold-copper mineralisation intersection occurring as sphalerite-galena-chalcopyrite rich massive sulphides, with a downhole mineralised interval of 18.2 metres at 40.3 per cent zinc, 15.7 per cent lead, 0.97 per cent copper, 356 grams per tonne silver and 2.77g/t gold from 182m.

Peel had drilled WTRCDD150 to infill Southern Nights Central Zone, adjacent to drillholes WTRCDD033 and WTRCDD035, where very strong mineralisation was previously returned.

The company claimed the interval returned from WTRCDD150 to rank as the highest-grade zinc-rich intercept that it has reported since its inception, and when coupled with adjacent drillhole intercepts, indicates a zone of near-surface, very high-grade mineralisation.

The intercept further highlights the economic potential of the Southern Nights discovery and the unsurpassed tenor associated with Cobar Basin mineral systems.

As a result, Peel is targeting this area with close-spaced infill drilling to better define the geometry and scale of the target zone.

Drilling now underway is part of an approximate 20,000m RC and diamond drilling program designed to enable the completion of a maiden JORC-compliant mineral resource estimate by the end of the 2018/19 financial year.

The program is also designed to test for extensions to the mineralised system, which remains open along strike and at depth.

Two multi-purpose (RC/diamond) drill rigs recently commenced drilling on a double shift (24/7) basis, to systematically infill and extend the current two-kilometre long footprint of the Wagga Tank-Southern Nights mineral system.

“The ultra-high-grade massive sulphides returned from WTRCDD150 are awe-inspiring, highlighting the prize that the Cobar Basin can deliver, and reaffirming the company’s recent decision to acquire the royalty associated with the project,” Peel Mining managing director Rob Tyson said in the company’s announcement to the Australian Securities Exchange.

“With funding secured and 100 per cent unfettered ownership, Peel can expeditiously drill test this area to better determine its geometry, scale and evident economic potential.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au

 

Peel Mining Enjoying Longer Southern Nights

THE INSIDE STORY: Peel Mining is primary focus is the Wagga Tank-Southern Nights project in New South Wales.

Peel has been exploring for high-grade base metals in the Cobar Basin for around eight years, where it has made three greenfield discoveries: Mallee Bull, Wirlong, and Southern Nights.

A fourth discovery, Wagga Tank is a rediscovery as such, as it had been found before the company arrived but had been neglected for nearly three decades.

“We started calling the Cobar Basin home after making the Mallee Bull discovery,” Peel Mining managing director Rob Tyson told The Resources Roadhouse.

“We have completed over 160 kilometres of drilling since listing and in the last financial year alone, we were probably close to doing 50 kilometres of drilling.

“That has been fundamental to us making discoveries.”

Peel followed a trail of historic drilling and prospecting results into the Cobar Basin left by earlier explorers.

At Wagga Tank, a study of historical data included 42 drill holes, revealing 24 with potential economic drill intercepts.

Discovered in the 1970s, no work had been carried out on the Wagga Tank deposit since 1989.

Discoveries made by Peel in the Cobar Basin, include the advanced Mallee Bull copper-polymetallic deposit, a 50:50 Joint Venture with CBH Resources.

It contains a JORC compliant Mineral Resource Estimate of 6.76 million tonnes at 1.8 per cent copper, 31 grams per tonne silver, 0.4g/t gold, 0.6 per cent lead and 0.6 per cent zinc (2.6% copper equivalent) containing approximately 119,000 tonnes of copper, 6.6 million ounces silver, 83,000 ounces gold, 38,000 tonnes lead and 38,000 tonnes zinc (175,000t copper equivalent) (using a 1% copper equivalent cutoff).

Pre-Feasibility Study work at Mallee Bull has investigated the conceptual development of the Silver Ray lens (formerly T1) as a ‘dig and truck’ operation, where ore would be milled at CBH’s Endeavor mine approximately 150km away, where surplus milling capacity exists.

The JV partners believe staged mining development of the Mallee Bull deposit could substantially reduce total capital expenditure.

The Wirlong deposit, discovered in 2015, is part of the Cobar Superbasin Project that is subject to a Memorandum of Agreement with Japan Oil, Gas, and Metals National Corporation (JOGMEC).

Wirlong has returned many important drill results in recent times, including:

WLRC015
4.9 metres at 4.3 per cent copper, 13g/t silver from 402.1m and 22m at 1 per cent copper, 4g/t silver from 332m;

WLDD001
9m at 8 per cent copper, 17 g/t silver, 0.21g/t gold from 616m and 38m at 1.18 per cent copper, 4g/t silver from 450m;

WLRCDD024
26m at 1.21 per cent copper, 5g/t silver from 227m and 10m at 1.01 per cent copper, 4g/t silver from 288m;

WLRC026
27m at 5.3 per cent copper, 23g/t silver from 286m and 9m at 1.27 per cent copper, 4g/t silver from 255m;

WLRCDD028
9m at 1.29 per cent copper, 7g/t silver from 412m and 19m at 1.36 per cent copper, 6g/t silver from 432m;

WLRCDD043
17m at 4.59 per cent copper, 8g/t silver from 738m;

WLRC052
31m at 3.19 per cent copper, 11g/t silver from 299m; and

WLRC035
9m at 3.29 per cent copper, 18g/t silver from 70m.

“Mallee Bull sits atop our project pyramid followed by Wagga Tank/Southern Nights, then Wirlong in terms of how advanced each is,” Tyson said.

“However, our 100 per cent-owned Wagga Tank/Southern Nights has surpassed Mallee Bull in terms of importance to the company.”

Peel announced discovery of the high-grade zinc-lead-silver Southern Nights in October 2017 then followed up with a succession of strong drilling results confirming it as one of Australia’s most important zinc polymetallic discoveries.

“From historic data, we noticed a near surface oxide gold zone, beneath which there is some supergene copper, gold and silver,” Tyson said.

“But the primary mineralisation that caught our attention was the deeper zinc-lead-silver rich massive sulphide.

“At the end of an 18-hole program validating the historical results, we had around 300 metres of strike and a system defined to 350 metres below surface and open in all directions.

“The alteration and mineralisation in the drill core indicated, however, that it was likely to be a much larger system that initially thought.

“That led us to carry out further exploration, primarily geophysics conducting aeromag, surface EM, IP and gravity surveys that lead us to Southern Nights.”

Recent drilling produced high-grade mineralised intercepts at Southern Nights, and from the intervening zone between Wagga Tank and Southern Nights.

Most importantly, the drilling confirmed the Wagga Tank and Southern Nights deposits to be linked together, essentially as parts of one large mineral system.

Drillhole WTRCDD123 returned a strongly mineralised intercept confirming the link between Wagga Tank and Southern Nights of:

14.45m at 2.43 per cent copper, 2.67 grams per tonne gold, 123g/t silver, 2.58 per cent zinc, 0.87 per cent lead from 435.55m.

The copper-gold mineralisation intercepted in WTRCDD123 indicates possible metal zonation within the Wagga Tank-Southern Nights mineral system, a common feature of Cobar-style deposits.

The mineralisation remains open in all directions including up-dip.

Positive news from Southern Nights continued as drilling testing at deeper levels at Southern Nights and in the Wagga Tank-Southern Nights corridor encountered critical host stratigraphic units, with mineralisation observed in all drillholes.

Follow-up drilling at two other prospects associated with the Wagga Tank-Southern Nights corridor also returned positive results.

Drilling at the Fenceline prospect encountered mineralisation which remains open along strike and down-dip while first-pass drilling at The Bird prospect, located about 1.5km north of Fenceline, returned anomalous geochemistry confirming base metal mineralisation associated with the chargeable geophysical IP target.

Assays for Southern Nights returned:

WTRCDD075
13.1m at 5.49 per cent zinc, 1.53 per cent lead, 0.39 per cent copper, 31g/t silver, 0.5g/t gold from 259.8m;

WTRCDD106
46.4m at 3.91 per cent zinc, 1.51 per cent lead, 60g/t silver, 0.17g/t gold from 227.6m, including 18.9m at 7 per cent zinc, 2.74 per cent lead, 112g/t silver, 0.35g/t gold from 227.6m;

WTRCDD108
11.9m at 3.02 per cent zinc, 1.39 per cent lead, 203g/t silver from 240m, including 7.4m at 4.88 per cent zinc, 2.08 per cent lead, 311g/t silver from 241m; and

WTRCDD122
42.45m at 1 per cent copper, 18g/t silver, 0.35g/t gold, 0.3 per cent zinc, 0.14 per cent lead from 483.55m, including 10m at 1.94 per cent copper, 30g/t silver, 0.61g/t gold, 0.14 per cent zinc, 0.13 per cent lead from 496m.

Follow-up drilling at Fenceline returned:

TBRC029
8m at 6.29 per cent lead, 33g/t silver, 0.94g/t gold from 94m;

TBRC030
6m at 2.62 per cent lead, 18g/t silver, 1.76g/t gold from 97m; and

TBRC033
3m at 5.41 per cent zinc, 2.78 per cent lead, 0.25 per cent copper, 43g/t silver, 0.15g/t gold from 159m.

“There is now two kilometres of strike from the top of Wagga Tank to the bottom of Southern Nights,” Tyson said.

“It is open at depth, open north and south and is located on the Western side of the Cobar Basin where we believe some major structures exist that are feeding the system.

“Everything we have seen to date indicates this is a Cobar-style system, so we are hopeful it will have that long vertical planer continuation these types of systems usually display.

“More importantly, it displays camp-scale mineralisation along two-kilometres of strike, making it a large-scale system.”

 

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

 

Peel Mining Hits Strong Mallee Bull Infill Results

THE DRILL SERGEANT: Peel Mining (ASX: PEX) reported infill drilling results from the company’s 50 per cent-owned Mallee Bull deposit, located near Cobar in western New South Wales.

Peel Mining explained the drilling was undertaken as part of a Pre-Feasibility Study (PFS) investigating the conceptual development of the upper portion of Mallee Bull as a dig and truck operation, under which ore would be milled at JV partner CBH’s Endeavor mine located approximately 150 kilometres away, where surplus milling capacity exists.

The drilling consisted 16 drillholes and was designed to infill to a maximum of 30-metre spacing between drill intercepts in a zone of interest between 180m and 300m below surface, allowing for an update to the resource model (in this area) to an indicated mineral resource estimate.

The drilling also provided additional geotechnical information, and material for further metallurgical testwork.

Peel said its initial interpretation of drilling results indicates that the area of interest shows continuity of the Mallee Bull lode (stringer/breccia style) mineralisation.

Strong polymetallic mineralisation was intercepted in most drillholes with better assays including:

MBRCDD115
11m at 9.02 per cent copper, 114 grams per tonne silver, 0.37g/t gold from 296m;

MBRCDD110
14.15m at 4.27 per cent copper, 51g/t silver, 0.25g/t gold from 262m;

MBRCDD104
16m at 2.19 per cent copper, 49g/t silver, 0.38g/t gold from 237m including 9m at 2.69 per cent copper, 67g/t silver, 0.43g/t gold from 242m;

MBRCDD113
18m at 1.53 per cent copper, 24g/t silver, 0.38g/t gold from 234m including 4.86m at 3.53 per cent copper, 34g/t silver, 0.64g/t gold from 234.86m;

MBRCDD106
5m at 11.09 per cent zinc, 5.48 per cent lead, 32g/t silver, 0.14g/t gold from 305m;

MBRCDD103
13m at 1.76 per cent copper, 9g/t silver, 0.05g/t gold from 281m including 4m at 2.9 per cent copper, 12g/t silver, 0.06g/t gold from 288m;

Peel said the PFS is being based around underground mining of the high-grade Silver Ray zinc-lead-silver lens, followed by the development of an exploration decline to around 300m below surface to enable the underground drilling of the Mallee Bull lode copper mineralisation.

Mineralisation between 180m and 300m below surface is to be assessed for its potential to add further ore to the mineral inventory.

“Recently received assays are currently being interpreted and wireframed in anticipation of updating the relevant portion of the mineral resource model,” Pell Mining said in its ASX announcement.

“Once completed, the new mineral resource model will be the subject of mine design/scheduling to enable completion of the PFS which is expected during the current quarter.”

 

Email: info@peelmining.com.au

Website: www.peelmining.com.au