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.
- 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.
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.
⁻ 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 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.
- 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.