Sign up Australia
Proactive Investors - Run By Investors For Investors

Peel Mining is dominating the Cobar Superbasin

Peel will continue to deliver news from Mallee Bull, Wagga Tank and Wirlong.
Peel Mining is dominating the Cobar Superbasin
Peel’s projects cover more than 5,000 square kilometres

Peel Mining (ASX:PEX) has the largest single company holding in the Cobar Superbasin of New South Wales comprising 3,777 square kilometres.

This tenure covers the bulk of historic metallic mineral occurrences in the southern half of Cobar Basin, considered highly prospective terrain.

Most prospects have received little exploration in modern times.

Peel has a strong discovery track record at its Cobar Superbasin projects with the discovery of the Wirlong copper deposit and the high-grade Mallee Bull copper-polymetallic deposit.

More recently, Peel has benefited from the emergence of the Wagga Tank volcanic-hosted massive sulphide (VHMS) deposit as a significant zinc-lead-silver-copper-gold mineralised system.


Peel’s projects cover more than 5,000 square kilometres across New South Wales and Western Australia.

Projects include:

- Mallee Bull: An advanced copper polymetallic deposit that remains open in many directions;
- Cobar Superbasin: Farm-in agreement that offers funded strategic greenfields exploration potential along with the new Wirlong copper discovery;
- Wagga Tank: A polymetallic VHMS-type deposit with many significant intercepts;
- Apollo Hill: Exploration project that hosts a major, protruding, shear-hosted, gold mineralised system that remains open down dip and along strike; and
- Attunga: A high grade tungsten deposit.

Mallee Bull

The Mallee Bull project is a 50:50 joint venture with CBH Resources Ltd and is Peel’s most advanced asset.

The discovery featured some of the most significant copper results reported anywhere in the world in 2012-13.

A maiden JORC resource was released in May 2014 of 3.9 million tonnes grading 2.3% copper, 32 g/t silver and 0.3 g/t gold.

Since then, a number of highly mineralised extensional intercepts have been drilled and extensional work programs are continuing at Mallee Bull.

Mineralisation remains open along strike, up and down dip.

Metallurgical flotation test-work has indicated copper recoveries of up to 95%.

Mallee Bull: Extensional discoveries

In May 2015, the T1 near-surface high-grade zinc-lead-silver-gold discovery was made.

The T1 target returned shallow, high-grade mineralisation including:

⁻ 12 metres at 35.1% lead-zinc, 308 g/t silver, 1.59 g/t gold from 83 metres;
⁻ 7 metres at 34.1% lead-zinc, 203 g/t silver, 0.58 g/t gold from 71 metres; and
⁻ 10 metres at 23.4% lead-zinc, 322 g/t silver, 1.28 g/t gold from 106 metres.

In September 2016, a significant copper intercepts discovered Mallee Bull North, located 300 metres from Mallee Bull.

Intercepts include:

⁻ 7 metres at 2.01% copper, 37 g/t silver, 0.15 g/t gold from 324 metres;
⁻9 metres at 2.24% copper, 27 g/t silver, 0.27 g/t gold from 455 metres;
⁻7 metres at 1.28% copper, 16 g/t silver, 1.89 g/t gold from 371 metres; and
⁻5 metres at 2.22% copper, 31 g/t silver, 0.09 g/t gold from 404 metres.

Closer to the current deposit, extensional intercepts intersected on the northern edge of the Mallee Bull resource include:

- 62 metres at 3.15% copper, 42 g/t silver, 0.28 g/t gold from 465 metres; and
- 13 metres at 0.86% copper, 33 g/t silver, 1.39 g/t gold from 407 metres.

Wagga Tank

Wagga Tank is 100% owned by Peel and was acquired for $40,000 and a 2% net smelter royalty.

It is a VHMS deposit located on the western edge of the Cobar Superbasin, 45 kilometres from Mallee Bull.

The deposit has had 42 historical holes drilled into it from 1989 including:

- 32 metres at 3.00 g/t gold, 24 g/t silver from 10 metres;
⁻ 20 metres at 3.11 g/t gold, 63 g/t silver from 28 metres;
⁻ 30 metres at 1.93 g/t gold 24 g/t silver from 8 metres;
⁻ 25.9 metres at 8.74% Zn, 3.39% lead, 82 g/t silver from 141.6 metres;
⁻ 15.7 metres at 10.39% Zn, 4.43% lead, 69 g/t silver from 215.6 metres;
⁻ 18.15 metres at 5.86% Zn, 3.00% lead, 32 g/t silver, 1.01 g/t gold from 222.85 metres;
⁻ 24 metres at 2.73% Cu, 0.56 g/t gold, 13 g/t silver from 86 metres;
⁻ 20.3 metres at 2.17% Cu, 0.76 g/t gold, 9 g/t silver from 184.4 metres; and
⁻ 13.55 metres at 4.6% Cu, 1.14 g/t gold, 470 g/t silver from 119.75 metres.

Initial drilling by Peel commenced in the December quarter for a total of 18 reverse circulation holes and 5 diamond tails for 4,788 metres.

The program has successfully confirmed the presence of high grade base and precious metal mineralisation originally identified at Wagga Tank.

Final assays remain pending.

Cobar Superbasin Project

The Cobar Superbasin Project is subject to a memorandum of agreement with Japan Oil, Gas, and Metals National Corporation (JOGMEC), under which JOGMEC may earn up to 50% interest by funding up to $7 million of exploration.

The Stage 1 expenditure commitments totalling $4 million were concluded in the September 2016 quarter, taking JOGMEC's interest in the project to 40%.

Stage 2, for an additional 10% interest through the spending of $3 million, has commenced.

The focus has been on the Wirlong and Red Shaft prospects where drilling has discovered high grade copper-silver-gold mineralisation.

Results include:

- 9 metres at 8.0% copper, 17 g/t silver, 0.21 g/t gold from 616 metres;
- 26 metres at 1.21% copper, 5 g/t silver from 227 metres; and
- 9 metres at 3.29% copper, 18 g/t silver from 70 metres.

Mineralisation has been defined from near-surface to more than 500 metres depth, along over 500 metres strike that remains open.

Further extensional drilling at Wirlong is underway.


Importantly, Peel has a track record of operating with low overheads and investing capital into the ground with circa 18,000 metres of drilling in 2016.

Peel has a competent board and management that have made discoveries such as Mallee Bull, Wirlong and Red Shaft and have done value accretive deals such as Wagga Tank to deliver value to shareholders.

This has resulted in the company emerging as one of New South Wales’ predominant green fields explorers.

Shareholders are leveraged to news flow from proven exploration targets that are advancing towards development in the Cobar Superbasin.

The Cobar area hosts proven prospective geology, which features multiple high grade mineral deposits and long-life mining operations.

Due to its prospectivity, the area has good access to mining infrastructure and a supportive, mining-skilled community.

With a current share price of $0.175, Peel has a market cap of 26.5 million making for a compelling value proposition.

Peel is well funded to continue delivering drill-based news flow with $3.3 million in cash at the end of the December quarter.

View full PEX profile View Profile

Peel Mining Ltd Timeline

Related Articles

March 07 2018
Production at Thalanga is forecast to grow more than 50% between 2018 and 2019.
Picture of area surrounding Paradox Lithium Project
May 07 2018
Cloud, Cane and LC South will be part of Anson's Paradox project with the claims being close to oil wells with historically recorded lithium values.
Picture of Teal Gold Project
April 10 2018
Management recently upgraded production guidance at the Teal Gold Project.

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use